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Qantas Job Cuts

I thought news on high profile job cuts and factory closures came in at around once a week since the Labor government came to power. It seems that rate is accelerating to a few examples every week. The latest is Qantas. A few days ago it was Holden. Prior to that it was car parts manufacturer Autodom.

Qantas is in trouble. They can’t compete with international airlines. Our corrupt union run government is fueling the high costs that are making Qantas uncompetitive. In Australia, under a labor government, job cuts would usually be countered by workers going on strike. Maybe I don’t understand business, but wouldn’t striking make your position worse as a worker in a company struggling with high costs?

I continue to worry about Australia’s future in an international economy. Something needs to change before we price ourselves out of every industry and have nothing left. I don’t think labor’s universal strategy of increasing taxes will solve this.

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  1. November 8, 2012 at 9:54 am

    Reblogged this on pindanpost.

  2. November 8, 2012 at 9:59 am

    The change in Australia’s economic profile was happening long before Labor came to power in 2007. Our models should be the high tech, elaborately transformed manufacture countries, not tyring to compete with low tech, low cost economies and flogging off untransformed minerals and primary products.

    • November 8, 2012 at 11:31 am

      Yes this shift is typical in developed countries, but not typical is a government that fuels the deterioration of primary industries through perpetual cost hikes. This accelerated decimation is faster than what our economy can evolve with. We have infrastructure that can keep us competitive in existing industries for decades, if only the government didn’t penalize them. Another attraction to Australia’s primary industries was stable government and stable rules. This could overcome the attraction of cheaper alternatives, until the government adopted a philosophy of changing the rules on profitable business and taxing them for all they’re worth.

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