Opposite directions !

Two news reports emphasise forces that are pulling in opposite directions when they affect the Australian economy.

The Australian Industry Group's price manufacturing index fell again in August and now stands at 43.3%.   Any figure under an index of 50 is seen as " retreating " -  and that would aptly describe the decision by BlueScope steel to quit exporting it's product and close down a blast furnace.

At the same time Ged Kearney, president of the Australian Council of Trade Unions ( ACTU ) is calling on industry to adopt a new law that came into force in Britain this month   That law bestows overtime, public holidays - and the same conditions that apply to permanent employees to those who are deemed " temporary " or " Casual ", provided they remain with the same employer for a twelve week period.

This demand completely ignores the reason why employers opt for casual staff instead of adding a permanent to their work force.   In a volatile market it is preferable to pay a person a higher casual rate to avoid the complications that will arise if it becomes necessary to stand down or dismiss a permanent member of the staff.

Without access to " casuals " it would be impossible to cater for seasonal or " unusual event " market surges.  At the same time, the philosophy of the ACTU denies that any valid reason exists to dismiss employees.
A market decline is dismissed as a fault of the employer for not making adequate plans to counter such an event.

Any economist would be quick to point out that the British economy is not exactly booming - and  this new law could well be the cross that many industries find impossible to carry.   It certainly blurs the line between " casual " and " permanent ".

Hopefully, applying that law here is merely another flight of fancy on the ACTU's " wish list ".    It would be a sure way to further decline employment opportunities because most employers would revert to the time tested method of retaining a small work force and working huge amounts of overtime.

That keeps their payroll and obligations under control - but it sharply restricts job opportunities for both permanent and casual hopefuls.

The idea seems to be wishful thinking from the " socialist " side of politics.    Unfortunately it is not practical in the real world !