Premier Peter Beattie has warned Queensland employers could face higher wage costs under the federal government's proposed IR reforms.
Responding to an exclusive report in this week's
QBR's digital magazine, he told yesterday's
Queensland 400 Business Summit the move to a federal awards system would impose higher hourly rates and penalty rates on businesses currently operating under state awards.
State awards are in general structured to take account of the lower cost of living in Queensland. They also tend to be less onerous, especially regarding penalty rates.
"Cost structures in Sydney and Melbourne are higher than ours ... meaning that over a long period of time employees under state awards are paid less than under federal awards," Beattie says.
"Now it's not because there's anything wrong with us. It's because our cost of living is less.
"If our workforce ... goes under federal awards, there will be an adjustment. We will end up with uniform payments across Australia, and you will pay for it.
"Now I say that because I am concerned to make certain that we do not discourage ... the people that are driving this economy."
In response to concerns raised by employer groups,
QBR understands the federal government is investigating ways to ensure Queensland employers are not penalised by the new system.
Options under consideration include federal awards that incorporate rates only applicable in particular jurisdictions, or ones that set the minimum rates at the lowest common denominator.
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