IR laws 'won't lead to wages breakout'

AAP

THE Rudd government is adamant its new industrial relations system won't cause a wage breakout despite union demands for higher pay.

The Australian Manufacturing Workers Union (AMWU) will reportedly seek pay increases of up to six per cent across the manufacturing sector under the new regime, which replaces Work Choices.

Workplace Relations Minister Julia Gillard is confident the changes won't lead to a wages breakout.

"No it won't," she said when questioned on Fairfax Radio Network, adding employers and employees would both have to bargain for a deal that worked best for them.