Businesses using financial crisis as cover for job cuts

There are worrying signs that some large businesses are using the current financial crisis as a cover for unnecessary job cuts say unions.

ACTU President Sharan Burrow said that some companies are trying to maintain short-term profits at the expense of workers' jobs and the long-term viability of local industry.

Unions are calling on the big businesses that have announced job cuts this week — including Pacific Brands, Lend Lease and Telstra — to urgently reconsider their decision and delay or call off the job cuts.

"It is unacceptable for some large businesses, including the banks, to put short-term profits ahead of the lives of workers and the future of local industry," Ms Burrow said.

"Companies that are still making profits or paying exorbitant salaries to executives should not try and take the easy way out by slashing jobs.

"Now is the time for employers to act wisely and think about the long term. They should not rush to slash jobs that will destroy capacity for when better times return.

"Where possible, any decision to cut jobs should at least be delayed until the economy recovers and the job market improves.

"Many of these companies have received a lot of taxpayer support in recent years and should be repaying that support with greater loyalty to staff.

Pacific Brands received more than $15 million in the past two years and Lend Lease has also benefitted from major publicly funded or underwritten infrastructure projects in recent years.

Ms Burrow added that banks and institutional investors should not be putting pressure on companies to slash jobs as a cost-cutting exercise in the current economic environment.
Ms Burrow said reports that Pacific Brands was forced to make job cuts as a condition of its bank loans being extended were very disturbing.

"Australia’s banks are also benefitting from substantial support from Government. The banks as well as all the other companies that are getting taxpayer support have a special obligation to protect local jobs and help the whole community get through the downturn.

"Companies should also not use announcements of major job cuts to appease institutional investors and the stock market. It is appalling to see the share price of companies rise immediately following announcements that thousands of hard working Australians are going to be sacked.

"These are difficult times, but we need to see more leaders in the business community who are prepared to pull out all stops to safeguard jobs and maintain our local industries," Ms Burrow said.

ACTU