Unions and business must show restraint in these tough economic times, Prime Minister Kevin Rudd says.
The Australian Manufacturing Workers Union reportedly is pursuing a four per cent pay increase across 1,300 agreements in the manufacturing sector under the new industrial relations system, with better-performing companies to be hit with claims of six per cent.
"It is important for unions and for business at this stage to exercise restraint," Mr Rudd told the Fairfax Radio Network.
"These are very difficult global economic circumstances."
He commended employers across the country who have trimmed profit margins to retain staff through the downturn.
"And there has also been restraint by many unions ... but you are always going to have people being irresponsible."
The economy still faced a "big problem" with rising unemployment.
"I fear we are still going to see rising unemployment for while ahead," Mr Rudd said.
The new Fair Work Australia system comes into force today, replacing the Howard government's Work Choices.
AAP
