The AMWU has condemned the government’s plans to lift the pension age from 65 to 67.
The decision to lift the qualifying age by two years to 67 is unfair to many workers, particularly those who work in heavy industry and construction.
In a joint letter to Prime Minister Kevin Rudd, National Secretary Dave Oliver and CFMEU National Secretary John Sutton said that many members of the two unions left school at age fifteen and sixteen and are required to work long hours, often undertaking physically taxing work.
Mr Oliver said there was nothing to stop those who were willing and able to work past sixty five if they wanted to, but forcing up the official retirement age, meant some people would struggle.
“It is grossly unfair to take away the right to retirement from people in physically tough jobs until they’re 67.”
The unions argue that the policy is not only bad for workers but will also cost as much money as it saves, as the age increase will only lead to more compensation claims from older workers.
Federal Treasurer Wayne Swan said the pension hike, to be phased in from 2017, reflected growing life expectancy and spiralling pension costs at a time when the government was working to return the budget to surplus.
The government is arguing that a shift in the official retirement age is in line with other countries, such as Germany, Denmark and the United States.
But government backbencher, Senator Doug Cameron has come out in support of the unions and says the plan needs re-thinking.
Senator Cameron said that Norway faced a rise in disability payments after they raised the pension age.
“There has be some consideration for manual workers who have had a very hard life,” he said.