Unions push for pay rise despite cuts

Australian mining unions are still pushing ahead for substantial pay rises, particularly for Western Australian power workers, at a time when mining giants are planning massive staff cuts.

Acting Prime Minister Julia Gillard today reiterated calls for jobs protection over pay rises and added that the government is doing all it can to protect and invest in jobs in the face of a weakening world economy.

Her comments follow calls from unions for massive pay rises with some Alcoa mine workers reportedly seeking a 33 per cent pay rise, at a time when the company announced it was slashing some 15,000 jobs worldwide.

However the aluminium producer said jobs in Australia will be safe in the near-term.

Next month Rio Tinto will announce where it plans to cut some 14,000 jobs in the wake of the downturn.

Ms Gillard said the biggest issue facing the country in 2009 was protecting Australian jobs.

"These are difficult times. After the global financial crisis, our economy is not going to be untouched," she told ABC Radio.

"The most important thing is to make sure that Australians are still in work. We want to minimise any job losses, and we're obviously asking people to take a responsible approach to that."

Ms Gillard acknowledged that Alcoa did not plan to axe Australian jobs, but warned the mining industry was facing changing times just as much as other sectors.

"Different businesses are in different positions. That's why our new workplace relations system is going to be based on enterprise bargaining, so that particular arrangements can be structured that are the best arrangements for that enterprise," she added.

"We do know ... Alcoa has said that it isn't restricting jobs in this country. We know the mining industry is going to be facing a different era than the one it's been in, with prices for commodities coming down.

"All of that has to be weighed in the balance. Our simple message: think about jobs first."