PM Albanese backs grand bargain between unions and bosses to boost productivity and wages

Anthony Albanese says his government is prepared to broker a deal between big business and unions to increase wages in return for boosting productivity.

Prime Minister Anthony Albanese in Eastwood today with the Member-elect for Bennelong, Jerome Laxale. Picture: NewsWire/Monique Harmer

Anthony Albanese has backed a big business pledge to work with the union movement to fix the failing enterprise bargaining system, saying he has always believed the two groups have common interests.

In interviews published in the Weekend Australian on Saturday, Business Council of Australia chief executive Jennifer Westacott and ACTU secretary Sally McManus confirmed they intend to use the federal government’s employment summit in September to kickstart a cooperative agenda to deliver higher wages and productivity growth.

Asked what he believed was needed for such a “grand bargain” to be struck between bosses and their workers, the Prime Minister told Sky News on Sunday: “The key is a government that’s prepared to broker it, that looks to bring people together.”

“I’ve said that business and unions have common interests. Business can’t succeed without workers, and without a collaborative relationship through workers’ representatives, through the trade union movement, and if you don’t have successful businesses, you haven’t got union members,” Mr Albanese said.

“We need to recognise that the way to increase both profits and wages without putting upward pressure on inflation is of course productivity.

“That has really dropped off in recent times, and I’ve been very heartened by the comments of both the business community and union leaders that they want to look for that win-win circumstance.

“In addition as well, at the National Press Club, I spoke about the potential to have a deal as well, with small business, as well with unions, making sure that we support a work environment that acts in the interests of small businesses and what they need, but also in the interests of workers, who contribute to the success of those businesses.

“I’ve been very heartened by the positive response. That’s why I want to bring together the full employment summit.”

Mr Albanese also reiterated his support for the Fair Work Commission to set a minimum wage which does not constitute a pay cut in real terms.

“You hear this debate about, you know, not using spin and answering things directly. I was asked (during the election campaign) would I welcome the Fair Work Commission not making a real wage cut to people who are on the minimum wage of $20.33 an hour, and I said ‘absolutely’, and I stand by that,” Mr Albanese said.

“Of course I would welcome that. Because people on that wage are doing it really tough, really tough, and the idea that they can go backwards is, it will just make life more difficult for them.”