The Accord,Wages Policy and Social Security |
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Authors: | John Burgess |
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Abstract: | The Accord remains the key policy commitment of the Government. Whilst the operation of the Accord encompasses many policy areas, in practice the Accord has been fundamentally a wages policy. As such, other policy commitments of the Accord, such as those in the area of social security, have become secondary to the maintenance of a sustainable wages policy which produces the ‘correct’ macroeconomic outcomes. In this context two ‘objective’ social security objectives of the Accord are assessed — the indexation of benefits, and the targetting of single benefits to 25 per cent of average weekly male earnings. Both objectives have been compromised by the trade-offs and deals carried out to sustain the wages regulation component of the Accord. Alternative criteria for indexing benefits and for adjusting benefits relative to other income claims are outlined. |
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