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Opinion: Wages growth not possible in a welfare state

The elephant in the room at the jobs summit was Australia’s addiction to welfare – we’re a nation of lazy snobs, writes Peter Gleeson. VOTE IN OUR POLL

Tony runs a couple of barber shops and his family have been in the business of cutting hair for 70 years.

His father cut hair, as did his grandfather. A few days ago, Tony was working in one of his shops on his own. The other two chairs within the shop were empty, and there was a queue to get in.

“I can’t get staff,’’ he said as he clipped me up.

“I’ve never seen it like this. We’ve been doing this for 70 years and we’ve never had problems getting staff.

“I pay them $62 an hour. That’s more than some plumbers. But they go somewhere else for an extra 50c an hour. There’s no loyalty any more, mate.’’

Tony pays his leasing rental fee, power, payroll tax and superannuation to his employees. For the first time, he’s had to introduce a 15 per cent surcharge on Sundays and public holidays.

He’s the human face of Australia’s jobs crisis, and there are thousands of businesses in the same boat – they just can’t get staff, let alone good employees.

Over the past few days at the national jobs and skills summit, we have heard much from politicians, the unions and employers about sustainable wage growth and the future of bargaining.

We have heard much about reforming the industrial relations system so that workers get a better, fairer deal.

We have heard much about investment in tools, skills and the capability to innovate, as well as award simplification, which will ultimately drive productivity.

We have heard about the “big reset’’ on migration and fixing the apprenticeship system, while

addressing women’s participation by introducing childcare reforms.

They are wonderful, admirable aims, from a summit set up by the Albanese Government to make the country feel good about earning more dough during tough economic times.

But the real problem – the elephant in the room that was never discussed – was Australia’s addiction to welfare and the fact that we have become a nation of lazy snobs.

Why would anybody want to go to work for 38 hours a week to receive say $900 when they can still access Covid-19 payments of $750?

Why would anybody want to drag themselves out of bed, stand on their feet all day to cut people’s hair – albeit for good money now – when they can continue to bludge off the public purse?

Australia has a worker crisis, and people like ACTU boss Sally McManus can lecture till the cows come home on the need for higher wages, but Australia’s real problem is that we’ve pampered our younger generation too much, and now they’re taking the piss.

Employers, especially small business, are going broke because they can’t get people to work for them.

Restaurants are closing down because it’s all too hard. The Covid-19 pandemic has turned us into a nation of leaners, not lifters.

Forget the jobs summit. It was just another Labor propaganda tool to convince Australians that

Anthony Albanese is working on the employment challenges facing the nation.

The first thing to come out of the summit was a review. That’s political speak for “we haven’t got a clue’’ so we’ll order a review.

The big challenge for Australia is not wages growth. It’s actually getting people off their backsides to work. Wages growth only comes when people earn wages.

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Original URL: https://www.couriermail.com.au/news/opinion/peter-gleeson/opinion-wages-growth-not-possible-in-a-welfare-state/news-story/24ceabf6c4008b7812ffeb8d649aca9c