FED: Dems back cap on worker entitlement fund

AAP General News (Australia)
08-09-1999
FED: Dems back cap on worker entitlement fund

CANBERRA, Aug 9 AAP - The Australian Democrats today backed a capped insurance fund for
worker entitlements, warning the fund would not be affordable if there was no limit on
payments.

Democrats industrial relations spokesman Andrew Murray said he believed consensus could be
reached with the government on a national scheme to protect entitlements when companies went
bust.

"What I am thrilled about is that they have accepted the principle that worker entitlements
should be protected, and that is the first time in decades, that is a real breakthrough,"
Senator Murray told reporters.

Workplace Relations Minister Peter Reith said yesterday any insurance scheme being
considered by the government should be capped, operating as a safety net rather than
guaranteeing all money owed.

Mr Reith is looking at a British model, where the government, employers and employees all
contribute.

Senator Murray said a cap was necessary.

"It has to be capped, otherwise you are talking of a fund that runs to the hundreds of
millions, and that is just not affordable," he said.

He said he hoped the government would unveil some proposals tomorrow to help the Oakdale
miners, who lost $6.3 million in entitlements when their colliery closed in June.

Mr Reith and other senior ministers are due to meet union representatives of the miners
here tomorrow.

"Either way that can be dealt with I would be happy as long as their particular plight is
sorted out," Senator Murray said.

"But they are just a symbol of the problem, it is a national problem that people are
troubled by companies going belly up."

ACTU assistant national secretary Greg Combet meanwhile said employees should not have to
contribute to any insurance fund.

"They have an entitlement to annual leave and the employer has the obligation to fund it,"
Mr Combet told ABC radio.

And he said the union would be critical of a cap on payments.

"We want to see people's entitlements fully covered, a safety net would be an approach that
would be designed to take some of the political pressure off without actually fixing the whole
of the problem."

He suggested Mr Reith may be acting on the matter in a bid to woo over the Democrats on his
controversial second wave of industrial relations reforms.

AAP rmm/kr/de

KEYWORD: OAKDALE (CARRIED EARLIER)

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