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Legislated superannuation will increase unemployment



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NEWS RELEASE J O H N H O W A R D . M .P. M E M B E R FO R B E N N E L O N G SH A D O W M IN IS T E R FOR IN D U S TR IA L

R E LA TIO N S . E M P L O Y M E N T & T R A IN IN G

IRET 46/91

LEGISLATED SUPERANNUATION WILL INCREASE UNEMPLOYMENT

If the Hawke Government goes ahead with its foolish proposal to legislate for further superannuation it will add directly to unemployment.

The state of the labour market is now so parlous that many small business employers faced with the impost of a compulsory additional three per cent superannuation payment will have no alternative than to retrench more staff in order to afford to pay the additional superannuation for the staff who are left.

The absolute premium must now be that of job preservation. Anything which adds to the cost of employing labour is a direct incentive for employers to retrench more staff.

This is not a declaration against the proper extension of superannuation through the entire workforce.

Rather it is a plea for commonsense at a time when Australians face the-worst unemployment for decades.

Even in better economic conditions legislated superannuation imposts are wrong in principle.

At a time of economic recession and great job insecurity it also becomes an act of political stupidity.

Surely Mr Hawke and his ministers understand that at present they have a much greater obligation to stop further job losses than to add to the remuneration of those lucky enough to be in work?

SYDNEY 9 August 1991