Social Security penalises strikers
By Philippa Stanford
One of the federal government's budget changes restricts access to income support payments for people unemployed as a result of participation in industrial action. This provision, which came into effect on January 1, introduces an exclusion period of six weeks from the end of industrial action for people who don't return to work after the action.
Clearly the purpose is to move the responsibility for income support in early periods after industrial action from the Department of Social Security to workers and their unions. This provision takes on a greater impact when coupled with the outlawing of strike pay introduced in the new Workplace Relations Act.
The deferred payment period applies when the industrial action is in breach of an order, direction or injunction issued by a state industrial authority, the Industrial Relations Commission or the Federal Court.
While this period can run concurrently with other waiting periods, there are no exemptions. Anyone affected by the exclusion period on these grounds cannot apply for other benefits, although a partner may.
Restricting income support saves on the welfare budget, but more importantly to government and big business, it places workers under increased pressure not to participate in industrial action.