Gillard's carbon hopes up in smoke - National News - National - General - Myall Coast

THE Gillard government's plans to put a price on carbon have suffered a body blow, with key unions demanding exemptions for industry that are unacceptable to the Greens.

With his own job under threat from a hostile membership, the national secretary of the Australian Workers Union, Paul Howes, demanded yesterday that the steel industry be given a complete exemption from the carbon scheme and that there be generous compensation for the aluminium, cement and glass sectors.

Mr Howes issued the demand after a fiery crisis meeting with nine union branch secretaries from across Australia. It is understood Mr Howes, who is up for re-election before the next federal election, faced being dumped if he did not issue the demands.