Mua Dispute In Oil & As Sector A Menace To Monetary Policy

MUA DISPUTE IN OIL AND GAS SECTOR A MENACE TO MONETARY POLICY

The Deputy Prime Minister's failure to intervene in an ongoing pay dispute between the Maritime Union of Australia and vessel operators in Australia's offshore oil and gas sector has drawn the ire of employers.

"It is clear from the Deputy Prime Minister's failure to act that she sees nothing wrong with unions undertaking strike activity in pursuit of pay rises in the order of 70-100% for people already earning over double the average wage." AMMA Chief Executive, Steve Knott said.

"I believe most fair minded Australians would think that the pay increase of 27.5% being offered by employers was already fairly generous, and that the MUA's claims for pay increases of over $100,000 were just excessive and greedy."

"I'm sure the Federal Treasurer must have choked on his corn flakes this morning when he heard that Ms Gillard seems determined to deliver MUA employees a belated Christmas present in the form of a massive 70% pay rise."

Mr Knott said that any hopes the Reserve Bank Governor, Glenn Stevens, had of delivering on predictions of trend growth in 2010 and target inflation have surely been dashed this morning by the failure of the Government to intervene in this highly expensive and disruptive dispute.

"It seems there are some people within our country who are determined not to learn the lessons of the past. Australia has been down this path before when a 16% wage increase flowed across the workforce resulting in over a hundred thousand jobs being lost in the metal trades industry in the early 80's."

"Over the course of this dispute we have been repeatedly warned by other unions that if the MUA is successful, then they will expect to see similar increases."

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Minna Knight
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