Election 2025: Catholic Church backs above-CPI wage rise for low-paid

The Catholic Church has backed the ACTU’s claim for a 4.5 per cent minimum wage increase, as employers attacked the union’s bid for an above-inflation pay increase as ‘delusional’.

Catholics are backing a 4.5 per cent pay rise Picture: NCA NewsWire / David Crosling

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The Catholic Church has backed the ACTU’s claim for a 4.5 per cent minimum wage increase, as employers attacked the union’s bid for an above-inflation pay increase as “delusional”.

The Australian Catholic Bishops Conference said a $41-a-week increase would not add to inflationary pressures or job losses, as Australia still had persistently low unemployment, ongoing job creation and strong business profitability.

Speaking on behalf of the conference, Bishop of Maitland-Newcastle Michael Kennedy said workers had a right to wages that would provide themselves and their families with a dignified standard of living.

“A rise of 4.5 per cent would not only help improve the standard of living of the lowest-paid working Australians but lift the level of welfare payments and award rates of pay – providing a broader benefit to Australian families,” he said. “We must be ambitious about dealing with Australia’s working poverty.”

The Catholic Church, which employs more than 220,000 people across Australia, has been a long-standing advocate for minimum wage increases.

Its latest submission argues the Fair Work Commission should consider embedding the goal of eliminating the poverty gap into its overall approach to the national minimum wage.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar declined to comment on the church’s support for a 4.5 per cent increase but attacked the ACTU’s claim for the same amount.

“The unions unashamedly say they are not going to talk about productivity,” he said.

“They don’t have an agenda for productivity. They’re pushing for a 4.5 per cent minimum wage increase.

“Frankly, it’s delusional. It’s seeking to deny the reality. You can’t have a sustainable increase in real wages without a plan for productivity.”

National retailers joined ACCI and the Australian Industry Group in backing an increase in line with inflation of about 2.5 per cent.

In a joint statement, the Australian Retailers Association and the National Retail Association said the retail sector continued to face ongoing challenges, including persistent supply chain disruptions, high operating costs, and subdued consumer spending.

“Any increase to the national and award minimum wages must be both measured and sustainable. While inflation is forecast to decline, businesses are still under significant financial strain,” an ARA spokesman said.

“The ARA and NRA jointly submit that any wage increase should align with underlying inflation, account for the upcoming superannuation rise, and strike a balance between business viability and cost-of-living relief for employees.”

While the unions want a $41-a-week rise, the ACCI position would translate into $22.90-a-week rise, and the Australian Industry Group is calling for a maximum $23.80 a week.

The Australian Restaurant and Cafe Association said the increase should be limited to a below-­inflation 2 per cent rise, warning its members “cannot absorb wage increases without price hikes”.

Labor has backed an above-inflation increase while the Coalition has said it supported higher wages. Neither side has nominated a specific amount, saying that should be determined by the commission.