Catherwood LibraryILR School

In talks with resource companies, Australia?s conservative government encouraged the companies to delay large investments to lessen the leverage their unions would have when pushing for higher wages. The Employment Minister, Eric Abetz, said that giving in on wages would lead to ?long-term pain? for the companies. This encouragement comes as the Prime Minister, Tony Abbott, has pushed inquiries into union corruption, and the conservative government is working to establish a watchdog organization to more closely inspect union activities in the construction industry. The argument of the conservative party and employer groups is that the prior government had given power to unions which drove up wages and the cost of doing business in Australia. Unions argue that the higher wages are warranted as the hardships faced in the Australian construction and natural resources industries are also higher than in other industries.