Unions welcome, bosses pan, pay rise for award, minimum wage staff

Tasmanian unions have welcomed — and bosses condemned — a historic 8.6 per cent pay rise for the nation’s Australia’s lowest-paid workers.

Strong Australia business luncheon and panel discussion at Hotel Grand Chancellor. Panellists: Michael Bailey, Chief Executive Officer, Tasmanian Chamber of Commerce and Industry, Jennifer Westacott, Chief Executive, Business Council of Australia. Picture: RICHARD JUPE

Tasmanian unions have welcomed — and bosses condemned — a historic 8.6 per cent pay rise for the nation’s lowest-paid workers.

The Fair Work Commission handed down the findings of its annual wage review on Friday.

About 2.5 million award workers – nearly a quarter of the workforce – will receive a 5.75 per cent increase to their wages, while an estimated 184,000 workers on the national minimum wage will receive a record 8.6 per cent rise.

Full-time minimum wage workers will have their weekly minimum pay jump by about $70, from $812.60 to $882.90, while award workers will see their weekly rate climb by $46.72 to $859.32.

The changes are due to come into effect in the first full pay period on or after July 1.

Unions Tasmania secretary Jessica Munday welcomed the announcement.

“The union movement is proud to fight every year for our lowest paid workers in the national minimum wage case,” she said.

“We do it against the backdrop of employer resistance, with business groups frequently arguing workers should receive either no or very low wage rises.

Unions Tasmania secretary Jessica Munday. Picture: Chris Kidd

“Businesses can afford these pay rises – their record profits tell us that.

“We should be clear though that this is simply a cost-of-living increase. It won’t deliver the real wage growth that workers need to see, but it will help those struggling the most to pay bills and put food on the table.”

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said it was another cost impost on business.

“Today’s decision is very concerning for the business community,” he said.

“Increasing wages is going to add fuel to the inflationary fire, which could trigger further interest rate rises.

“The simplistic notion that businesses can afford increases in power, water and sewerage, transport and freight, rates, insurance and now wages without it affecting them doesn’t stack up.

“We support a wage rise for Tasmanians that’s fair and reasonable, but this decision will be beyond many businesses, especially businesses in regional Tasmania, and could harm business confidence.”

Federal Employment Minister Tony Burke hailed the minimum wage rise as “the best decision we have ever had” for workers from an annual wage review or from its predecessors.

“It has only been possible because of the actions of the government,” he told reporters in Sydney.

“But yes, there are still more changes that we need to make. There [are] still a series of loopholes of undercutting wages and we are intending to deal with that in the second half of this year.”

Mr Burke said he knew people on the minimum wage would still be doing it very tough.

“The government does not pretend otherwise,” he said.

The Albanese government had argued to the FWC – for a second year in a row – that low-paid workers should get a wage rise in line with inflation – which rose by 6.8 per cent in the 12 months to April.

Originally published as Unions welcome, bosses pan, pay rise for award, minimum wage staff