Coronavirus a trigger for wage move

Time for radical action — universal pay and no Newstart, says James Ayliffe

WHO would have thought six months ago that a pandemic would be on our doorstep?

The answer: very few. Yet many large corporations and government organisations would have routinely dusted off their business continuity plans for an annual review as their tick in the box for another completed governance requirement.

Doubtless, many risk managers would have been faced with sneering cynicism from executives who would argue that the risk of a significant stoppage of operations was so low it was not worth the time and effort in revisiting preparedness actions.

“We’re running a business, have customers to serve, missions to fulfil” ... and the list of excuses goes on.

The temptation to defer tough business continuity issues has been too great for many organisations short on resources to consider such improbabilities.

And yet here we are, and it’s the staff and workers who will bear the cost.

Today, we find ourselves in a situation of having to downsize, having to let staff go and close down operations.

Admittedly, tough corrective actions need to be taken, but how many executives have given thought to the fate of their workforces and their ability to meet the financial burden of simply living as a result of forced separation due to lack of business continuity?

The government’s words of encouragement to industry to look after their workforce in times of strife is like asking a drug addict to just say no.

It’s just words. What is needed is leadership.

Australia, like our global neighbours, is fighting a war — a war against a persistent disease — and there is no better way of demonstrating leadership in wartime than letting the community know that we will get through this, but we must all pull together and all make sacrifices.

In a perverse sort of way, this pandemic is a blessing in disguise, because it has provided the sort of shock therapy that gives us the luxury to think radically.

For example, in normal times, a Liberal government would be hung, drawn and quartered by its corporate constituents if it suggested universal wages.

Yet, at this very moment, we have an opportunity to introduce not only a stimulus measure to protect the workers — the individuals who will lead the demand side of the economic equation — but provide a business-asusual formula for economic sustainability going forward.

By guaranteeing all Australian citizens a wage equal to say 40 per cent of the average weekly wage, the social harm that is looming due to the virus could be averted. Those employees that cannot be retained by their employers will have a safety net. At the same time, unemployment benefits could be scrapped with significant savings by reducing the government bureaucracy that has grown over time to serve the unemployed.

The guaranteed wage could also have an education incentive built into it. For example, for those that are on the safety net arrangement, if they study at a TAFE or university, they will receive a top-up to 50 per cent of the average weekly wage. This might also help TAFEs and universities to review their slash and burn approach in dealing with the current crisis.

Perhaps it might also reduce their reliance on foreign students.

Radical? Yes. But we are in uncharted waters, and maintaining public confidence and security is paramount to reaching a safe harbour.

YET HERE WE ARE ... WE FIND OURSELVES IN A SITUATION OF HAVING TO DOWNSIZE, HAVING TO LET STAFF GO AND CLOSE DOWN OPERATIONS