Article Analysis (Labour Markets

William Du 11EcoD

UNIONS are preparing a push for a national portable long service leave scheme to enable workers to accrue long service leave entitlements with multiple employers. Australians are working harder than ever, but only one in four of us will ever qualify for long service leave. The rise of casual work and more frequent job switching means fewer people are getting to enjoy a well-deserved mid-career break. Australia is one of only a handful of countries to offer long service leave, typically consisting of two months paid leave for every 10 years worked for the same company. However, in some states and companies, long service leave is accrued after seven years. A reward for loyal service, the leave is also increasingly a crucial break for stressed-out workers who work some of the longest hours in the developed world, according to a new report released today by the McKell Institute. The Institute's executive director, Peter Bentley, said access to a mid-career break was important to help rejuvenate workers and help families struggling with a work life balance. "Long Service Leave is a great Australian innovation. We started it, we evolved it, but lately, we've been losing it," Mr Bentley said. "That's a huge shame, because with our alarmingly time poor modern lives, we need it now more than ever." According to Bernard Salt, a demographer with KPMG, the rise of iPhones and other smart devices meant workers today were constantly connected to the office and at risk of "burnout". "It used to be you worked nine-to-five and then you were uncontactable until the next day. Today we are connected to the office 24/7." Mr Salt said. "We're breeding an entire generation that by the middle of the 2020s will have had 20 years of non-disconnection from the workforce. That might lead to burnout unless you have these career breaks."

couriermail. according to the McKell Institute report. Fair Work Australia recommended in 2010 that a national scheme for portable leave be investigated. A boy born in 2001 will spend about 35 years of his life working. David Oliver. A girl born in 2021 can expect to work for 35 years. It's likely that much of the costs. "Long service leave and annual leave are basic rights of any worker in Australia. For girls. said the cost to employers of an expanded long service leave scheme would be offset by higher productivity among workers. which are small anyway. could be offset by higher productivity. A recent survey by the Centre for Work + Life found 56 per cent of workers would rather have two weeks' additional leave instead of a 4 per cent pay are less likely to have accidents and less likely to take time off. The secretary of the Australian Council of Trade Unions." he said. Parts of the construction industry had already introduced portable leave schemes and the ACTU was investigating ways to expand the scheme to other industries." he . and we deserve our holidays and sick leave.The executive director of the Centre for Workforce Futures at Macquarie University. the predicted increase in working years is even more stark. Read more: http://www. This will rise to 39 years for boys born in 2021. we work hard. told News Limited a portable scheme was important to stop the erosion of long service leave entitlements by casual work. As Australians. but the nature of the workforce today means that many workers are missing out on these entitlements. Professor Ray Markey. up from 29 years for girls born in 2001. "Rested workers are more productive. Australians are spending more years in the workforce than ever before.

” This also affects the working conditions of the Australian workforce. Long Service Leave is a unique characteristic and type of leave for Australians. advocated by trade unions are referenced in the article. The unions are advocating for the need of longservice leave. could be offset by higher productivity. The issues of current employment/industrial framework and worker’s rights. in that workers are at work “24/7.” The article also details that the entitlement of Long Service Leaves are also supported by labour market institutions in terms that it is a right of workers in Australia. This also is related to the Labour market trends in that the increasing casualization of workers can cause underemployment.“Rested workers are more productive…likely that much of the costs. a type of leave unique to Australia and New Zealand is typically awarded to employees after completing 10 years of labour with a single company. it argues the importance of Long Service Leaves in the labour force and also the decreasing and low number of employees permitted for these types of leaves -"Long Service Leave is a great Australian innovation. We started it. which are small anyway. as a result of modern communication. affecting the Supply of labour. The article also shows the role of Labour market institutions. The article also identifies the issue of . In the article. and the article is discussing trends showing signs that less workers have been entitled long-service leaves. but lately.The article discusses mostly issues regarding the working conditions in the labour force. Furthermore. The major issues discussed in the article can be related to the syllabus in terms of the characteristic of the Australian Workforce. Long-Service Leave. combating the lower number of participants due to increasing number of part-time and casual workers in the Australian Workforce. in the long-term. we evolved it. minimise costs . it then states that Australian workers are working in the workforce for a longer period than before – and will continue to increase." It claims that the productivity of labour will increase if workers are entitled for rest periods and this will. we've been losing it.

productivity is general decreasing. The decreasing number of employers supporting long-service leaves is decreasing and this will affect the productivity of the workforce. Also. means that working conditions are less desirable to Australians. Longer working hours for same pay/wages as shorter working hours(i. hence improving productivity and increasing total output.workers spending extensive periods of time in the workforce. this affects the supply of labour in the labour market. When number of workers permitted to Long-Service Leave decreases.e. modern communication is confining workers to much longer working hours and this has implications on Australians. with rest periods. also related to the Labour market trends. Hence. As argued in the article. Because Long-Service leaves add to pleasant working conditions. The issues aforementioned have direct and indirect implications on the Australian economy. the number of supply will decrease as working conditions . minimising business costs in the long-term. no additional pay for work at home). as leavers are decreasing. workers are less stressed when returning to their occupations. this will increase the supply of labour. But as shown by current trends.

3 from S (l) to S (l2).decrease as people would prefer to take rest-periods from work. As calculated by the ABS. The increasing number of casual workers and part-time workers does not only decrease the number of available participants in LongService Leaves but also the underemployment rate will increase. This decrease in the supply of labour in the Australian labour market caused by this microeconomic factor. the equilibrium wage rate will rise from OW to OW2 and (l2). the level of employment falls from 0Q to OQ The increasing number of casualization is another issue which leads to underemployment. the underemployment rate (no of persons who work part-time but prefer more working hours) in 2011-12 was 7. As less people prefer to work in these longer-working-hour occupations.4%. the supply of labour will decrease more so for these Australian industries. leads to a shift to the left of the supply curve for labour as shown in Figure 8. Hence. .

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