Labor’s big move on pay increases for low wage workers

Labor has made a major intervention on low-wage workers in a formal submission to the Fair Work Commission.

Labor has officially backed a pay rise for low wage workers in a formal submission to the Fair Work Commission.

The party has recommended a 5.1 per cent increase for the country’s lowest paid workers.

The national wage authority will determine an increase later this month.

Labor has argued to the industrial umpire that Australia’s low-paid workers should get a wage rise in line with inflation.

The Albanese government on Friday afternoon lodged its submission to the Fair Work Commission’s annual wage review, which will determine whether the national minimum wage of $20.33 per hour will be raised.

Employment and Workplace Relations Minister Tony Burke said the submission referred specifically to the headline inflation rate of 5.1 per cent.

“It makes clear that with the wage price index measured against that, it means people are going backwards by 2.7 per cent,” he told reporters in Sydney.

“The government doesn’t want anyone to go backwards, but this is at its most acute for low-wage earners. They’re the people most affected by the cost of living crisis.”

Employment Minister Tony Burke says Australia’s low-paid workers deserve a break. Picture: Liam Kidston

Mr Burke said Labor’s submission related to all “low-paid workers”, not just those on the minimum wage.

“The government recommends the Fair Work Commission ensures the real wages of Australia’s low-paid workers do not go backwards,” he said.

“We have not specifically said only minimum wage, we said low-paid workers. Who are these people? They’re largely the heroes of the pandemic.

“They’re the people who both sides of politics made lovely speeches about after the pandemic, but only one side of politics, the Labor government now, was willing to fight for.”

Anthony Albanese said during the election campaign he would support a wage increase of 5.1 per cent for minimum wage earners. Picture: NCA NewsWire / Martin Ollman

Asked if widespread pay increases would further inflate commodity prices, Mr Burke said inflation was not being driven by high wage growth.

“How do we know this? We don’t have high wage growth. The factors that are providing upward pressure right now on inflation are not wages,” he said.

Anthony Albanese had promised Labor would support a pay increase for Australia’s lowest-paid workers that kept pace with the rate of inflation.

The Prime Minister during the election campaign said he “absolutely” endorsed any pay rise of at least 5.1 per cent for minimum wage earners.

This would equate to an raise of about $1 an hour for the almost three million people who rely on the Fair Work Commission’s annual wage review to determine their pay.

The commission will hand down its decision later this month.

Originally published as Labor’s big move on pay increases for low wage workers