Carpenter draws line on labour market reform

Premier Alan Carpenter told a business lunch in Perth today that he was concerned about the impact of Australian Workplace Agreements on low-paid and low-skilled workers.

Mr Carpenter also expressed concern about the number of foreign workers being brought into Australia, though he denied suggestions that he was predicting Cronulla-style race riots.

Addressing a Chamber of Commerce and Industry of WA function, he said "we need to be very careful" about importing migrant workers.

Mr Carpenter said the current industrial relations climate could create a perception that foreign workers were undercutting the wages and conditions of local workers.

His comments follow a vigorous campaign by unions, led by the militant Construction, Forestry, Mining and Energy Union, on the issue of foreign workers.

The federal government has dismissed the criticism, pointing out that temporary foreign workers (those entering Australia on section 457 visas) must be skilled workers earning at least approximately $42,000.

Mr Carpenter said he supported skilled migration but cited Pauline Hanson's controversial comments last decade to suggest the issue could get out of hand.

"I champion the cause but we need to be careful because otherwise the cause will be lost."

On the issue of labour market reform, Mr Carpenter said he wanted a system that offered both flexibility and fairness.

"I think we can have a better model, that's what we need to come up with."

Responding to a question from Austal manager Stephen Loopie, who said AWAs played an important role in maintaining his firm's international competitiveness, the Premier said "we need to focus on the impact on low-paid and low-skilled workers".

Mr Carpenter said the weakness in the AWA model was its serious ramifications for low-paid and low-skilled workers, especially when the current strong labour market starts to weaken.

He added that the government needed to look beyond the desires of any individual employer and adopt a holistic view about the wider community impact.

"Flexibility needs to incorporate fairness," he said.

CCI chief executive John Langoulant responded by emphasising that employers needed flexibility.

"As responsible employers, we don't want to drive wages to the bottom," Mr Langoulant said.

Opposition leader Paul Omodei said the Premier has "once again shown that he is a puppet of the union movement".

Mr Omodei also noted that the Premier has refused to rule out a Unions WA proposal to ban companies using AWAs from winning state government contracts.