ACTU: fed govt lacks wisdom, foresight

The federal government's reluctance to subsidise jobs and industries is a smokescreen for cuts to wages and conditions, the Australian Council of Trade Unions says.

ACTU Secretary Dave Oliver says the government's decision not to lend assistance to fruit processor SPC Ardmona is an "unacceptable failure of foresight and wisdom".

"They are happy to send a clear message to SPC that they will not support industries, communities or workers," Mr Oliver said in a statement on Sunday.

"Instead of stepping in to secure people's jobs, they are using struggling industries to drive down people's wages and conditions."

Employment Minister Eric Abetz last week warned of a "wages explosion" that would push thousands of people out of work if employers and unions didn't take a responsible line in wage agreements.

Mr Oliver said he feared the Abbott government's legacy "will be a graveyard of industries and a workforce whose pay and conditions have been slashed to please employers".

He also questioned the government's criteria for providing industry support.

"They've got no problem giving up to $4 billion in subsidies to the highly profitable mining sector yet they've failed to support thousands of jobs at Holden, SPC and Toyota could be next in line," he said.

SPC Ardmona's parent company Coca-Cola Amatil was seeking a $25 million contribution from the federal government to help secure production and thousands of jobs, but was turned down.

Labor's trade spokeswoman Penny Wong said it would have been value for taxpayers' money, providing job security and benefiting a struggling regional economy.

"You don't have governments as a matter of course simply propping up business but there are occasions when it's important for government to work in partnership with particular firms," Senator Wong told Sky News on Sunday.