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The alleged labour shortage is not real (Read 330 times)
Bam
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The alleged labour shortage is not real
Nov 1st, 2021 at 10:24am
 
Some employers have been complaining about a labour shortage, but this labour shortage is not real.

The real causes are:
* Very severe constraints on labour mobility.
* Job snob employers being too picky about the workers they hire, including illegal discrimination.
* Toxic workplace environments, causing problems with labour retention.
* Low wages growth and employers offering too little money for the work.

Labour mobility

It is a massive scandal that it's easier to relocate from the other side of the world to take an Australian job than it is to relocate across a state border.

Labour mobility within Australia is very tightly bound up in high costs, red tape, compliance burdens, massive penalties, high taxes, high government costs and unwarranted discrimination that make it completely impractical to relocate within Australia to take up jobs unless one has the means to fund that relocation. Employers are unwilling to pay those relocation costs and many prospective employees are unable to pay.

This is one reason why farmers can't get enough Australians to do harvest work.

Discrimination

Some employers refuse to hire locals to work for them. This is known to occur in harvest work and is so common on farms that willing locals cannot get any harvest work at all. These unscrupulous farmers are charging high rents for farm accommodation, and refuse to hire locals who do not need to use that accommodation or cannot otherwise be exploited.

Staff are no longer tolerating workplace abuse and are quitting in droves

The pandemic has forced many workers to reassess their life priorities. Many of them have chosen to quit jobs that have a poor or toxic work environment.

Any company that has problems with staff retention should review their workplace culture.

Low wages growth biting back

Australia has had record low wages growth for most of the last eight years, and this low growth is inhibiting the labour market. The cost of living has increased and in extreme cases this is making it unviable to take up jobs at all. Child care costs are a particular issue here. When that second job in a household is no longer profitable, workers will not take that job.

The days when employers can screw down wages are now at an end. The surest way to fix any perceived shortage of labour is to offer more money.
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rhino
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Re: The alleged labour shortage is not real
Reply #1 - Nov 1st, 2021 at 10:44am
 
I think your last point is correct, Im here in WA and there is a chronic labour shortage , however many employers in some industries pay below award wages with the complicity of the state government and have been doing so for some time.
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Swagman
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Re: The alleged labour shortage is not real
Reply #2 - Nov 5th, 2021 at 11:57am
 
Bam wrote on Nov 1st, 2021 at 10:24am:
The days when employers can screw down wages are now at an end. The surest way to fix any perceived shortage of labour is to offer more money.


This point, despite being close to the mark, contradicts the subject of your thread?




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polite_gandalf
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Re: The alleged labour shortage is not real
Reply #3 - Nov 5th, 2021 at 12:57pm
 
Swagman wrote on Nov 5th, 2021 at 11:57am:
Bam wrote on Nov 1st, 2021 at 10:24am:
The days when employers can screw down wages are now at an end. The surest way to fix any perceived shortage of labour is to offer more money.


This point, despite being close to the mark, contradicts the subject of your thread?


Not at all swag.

Businesses have grown fat on the overseas temporary-work-visa gravy train as a convenient tool to avoid having to address the stagnant wage crisis.

Naturally, when this gravy train dries up (as in during a global pandemic), then businesses unsurprisingly cry "labour shortage!" - which of course is just code for "reopen our borders so we can get more cheap labour!" Since rather than actually thinking long term and maintaining a viable and productive workforce for their future, they can't think beyond the simplisitic "how can I avoid giving my workers a pay rise".


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A resident Islam critic who claims to represent western values said:
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Outlawing the enemy's uniform - hijab, islamic beard - is not depriving one's own people of their freedoms.
 
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polite_gandalf
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Re: The alleged labour shortage is not real
Reply #4 - Nov 5th, 2021 at 1:04pm
 
Bam wrote on Nov 1st, 2021 at 10:24am:
Some employers have been complaining about a labour shortage, but this labour shortage is not real.

The real causes are:
* Very severe constraints on labour mobility.
* Job snob employers being too picky about the workers they hire, including illegal discrimination.
* Toxic workplace environments, causing problems with labour retention.
* Low wages growth and employers offering too little money for the work.



Of course the truth is, if there really was a labour shortage, wages would not - could not - remain stagnant as they are now. In that situation, it would be employees, not employers, who have the bargaining power.

Despite a temporary suspension of the overseas-work-visa rort, wages don't seem to have changed much in the last year or so - which leads me to conclude that businesses in reality are not doing too badly at all - worker supply wise. But they are clearly getting antsy. This I assume will die down once the cheap overseas labour starts pouring in again.
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A resident Islam critic who claims to represent western values said:
Quote:
Outlawing the enemy's uniform - hijab, islamic beard - is not depriving one's own people of their freedoms.
 
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Bam
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Re: The alleged labour shortage is not real
Reply #5 - Nov 5th, 2021 at 6:36pm
 
Swagman wrote on Nov 5th, 2021 at 11:57am:
Bam wrote on Nov 1st, 2021 at 10:24am:
The days when employers can screw down wages are now at an end. The surest way to fix any perceived shortage of labour is to offer more money.


This point, despite being close to the mark, contradicts the subject of your thread?

No.

It's not as prominent in Australia, but millions of overseas workers are quitting low-paying jobs, and employers are having difficulty getting workers to fill those jobs. In the USA, the minimum wage is US$7.25 an hour and hasn't been increased for 12 years. This is nowhere near enough to be liveable, and it's not worth the time of the employees to work for so little. It needs to be closer to about US$16 an hour. Employers who only offer the minimum wage are losing workers to those employers who offer more, as much as 180% more for the same work.

In Australia, wages have been stagnant for most of the last decade. Childcare costs for some families are so high that it's not worth taking that second job. If working is not profitable, people won't do it. Increasing wages is needed to get people working again.
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You are not entitled to your opinion. You are only entitled to hold opinions that you can defend through sound, reasoned argument.
 
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John Smith
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Re: The alleged labour shortage is not real
Reply #6 - Nov 6th, 2021 at 12:57pm
 
Bam wrote on Nov 5th, 2021 at 6:36pm:
This is nowhere near enough to be liveable, and it's not worth the time of the employees to work for so little. It needs to be closer to about US$16 an hour. Employers who only offer the minimum wage are losing workers to those employers who offer more, as much as 180% more for the same work.



if only more employers were like this guy

https://www.hcamag.com/au/news/general/ceo-who-took-pay-cut-to-raise-staff-minim...

increases workers pay and productivity and revenue TRIPLES.


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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.
 
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Sir Grappler Truth Teller OAM
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Re: The alleged labour shortage is not real
Reply #7 - Nov 6th, 2021 at 1:26pm
 
John Smith wrote on Nov 6th, 2021 at 12:57pm:
Bam wrote on Nov 5th, 2021 at 6:36pm:
This is nowhere near enough to be liveable, and it's not worth the time of the employees to work for so little. It needs to be closer to about US$16 an hour. Employers who only offer the minimum wage are losing workers to those employers who offer more, as much as 180% more for the same work.



if only more employers were like this guy

https://www.hcamag.com/au/news/general/ceo-who-took-pay-cut-to-raise-staff-minim...

increases workers pay and productivity and revenue TRIPLES.




Smart guy - he holds shares so his real income has actually increased due to productivity and revenue increase - win-win for everyone. 

Must be a miracle - a boss with a brain....
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“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
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