Re: Rudd is f***d...
As Dekkers pointed out AWA's were created to make australia more productive and in turn more competitive. This is not just for our trade relation with china but to lessen our national trade deficit with all countries.
AWA's promote upskilling, training and increasing efficiency. However while making us a much stronger workforce they also widen the gap between high and low income earners and make it very difficult for people in low bargaining positions.
under the centralised wage fixing system the AFPC is able to nationally control the supply of employment and use the blunt instrument of the minimum wage to control our pay. This can be very useful to control inflation and to minimise the wages sector of GDP. One of the main problems for this centralised system is that everyone always wants a pay rise, and if there is a pay rise below inflation (as there has been for the past few years) then everyone whinges about it. This system also provides pay rises for everyone regardless of wether they deserve it or not.
All in all if you want a stronger economy then AWA's are the way to go.
However if you want to look after people nationally then awards are the key.
btw although the government has an influence, it cannot control interest rates. that is the job of the RBA. the labour government missed a big opportunity in the last election when the liberals stated that they would keep interest rates low.
if interest rates are high it basically means our economy is going well and that the RBA is trying to slow it down to control inflation.
there are however exceptions to this.