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Pension age increase costly for employers

Two major Australia unions believe that the Federal Government’s plan to raise the pension age from 65 to 67 will be very costly for employers and will create a “false economy.”

The Construction, Forestry, Mining and Energy Union (CFMEU) and the Australian Manufacturing Workers’ Union have expressed their concerns over the legislation believing that it may cause more injuries to workers and extra downtime, which will cost employers in the long run.

CFMEU national secretary John Sutton told ABC Radio on Monday that he anticipates a lot of “injuries and downtime” from the measure and he doesn’t believe that any money will be made for employers or the commonwealth, rather they will lose money.

Sutton also claimed that it is a “big ask” for workers to continue with hard physical labour until they are 67.

“By the time you reach 65 you’ve basically done about 50 years in hard physical labour. To be turning around and saying to people that, `I’m sorry, they’re not going to get the aged pension. They’ve got to work on to age 67,’ is a pretty big ask.”

The CFMEU and the Australian Manufacturing Workers’ Union have requested the Government drop the measure.

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Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

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