The budget cautions that unstable global economic factors such as further inflation shocks or slowdowns in overseas demand could push up the unemployment rate faster than expected.
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Chalmers said skills,training and childcare spending in the budget will boost workers’ pay by creating a “stronger and more resilient economy”.
Labor’s marquee election commitment,$4.7 billion over four years for cheaper childcare,is designed to increase parents’ workforce participation by raising subsidy rates and expanding eligibility criteria.
Just before the Job Summit in September,state and federal governments reached a one-year $1.1 billion deal to create 180,000 free TAFE positions. The Albanese government is promising to work with the states and territories to generate a further 300,000 places from 2024 to train workers for higher-skilled and more lucrative roles.
It is also putting $13 million towards a new tripartite body,called Jobs and Skills Australia,to give advice on workforce strategy.
But Labor’s wages hopes rely on a package of industrial reforms,expected to be tabled in parliament by Thursday,that the government argues will help workers win more secure jobs and negotiate better pay deals,especially in lower paid industries dominated by women.
If passed,the new laws will enable industry-wide bargaining,limit the use of short-term contracts,allow quicker approval of pay deals and permit the industrial umpire to arbitrate more disputes.
Employers have vowed to mount a campaign against the planned workplace laws because of fears the industry-wide bargaining will produce more strikes and higher costs.
There is a suite of spending in the budget that goes to union priorities,though some will also aid employer organisations.
Union and employer representatives will benefit from $9 million over three years for a “Productivity,Education and Training Fund”. The Fair Work Commission,which deals with industrial disputes and approves pay deals,will get $8 million to encourage small businesses to strike wage deals with their workers.
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And the Fair Work Ombudsman will receive a funding boost to replace the work of the Coalition’s union watchdog – the Australian Building and Construction Commission – which is slated for abolition. That move will save about $60 million over the next four years,although building industry groups have argued that the move will raise costs on building sites by empowering construction unions.
Labor’s plan to abolish the commission,which has been established twice by Coalition governments and abolished once before by Labor,is not guaranteed to pass parliament because key crossbenchers hold concerns. However,the move to strip it of funds in this budget will make it all but impossible for the organisation to function.