Employers urge ‘modest’ $8.29 minimum wage rise

The Australian Industry Group also wants any increase for low-paid workers in covid-stressed industries to be delayed.

CEO of the Australian Industry Group Innes Willox. Picture: AAP

The Australian Industry Group has urged the Fair Work Commission to limit this year’s minimum wage rise to $8.29 a week, and wants any increase for low-paid workers in COVID-stressed ­industries to be delayed until January.

The national minimum wage is currently $19.84 per hour, or $753.80 a week. Ai Group’s proposed 1.1 per cent increase equates to 22c an hour. Ai Group chief executive Innes Willox said it was critical that the commission took a cautious approach.

“While Australia’s economy has bounced back at a faster and stronger pace than had been anticipated — reflecting the size, speed and success of various economic support measures — the ­effects of the pandemic and ­recession are ongoing,” he said.

“There are many hurdles to a complete recovery. The global pandemic is continuing and the level of infections in many countries is increasing rapidly. Major travel restrictions are set to ­remain in place in Australia for at least the next 12 months.

“The inability of businesses to access overseas workers is leading to widespread skill and labour shortages. These shortages are impacting upon business viability, growth and productivity.”

He said economic loss and ­recovery had been extremely uneven across ­locations, industries, occupations and demographic groups. “A minimum-wage ­increase is a very blunt instrument and cannot be readily tailored to the needs of particular employees and businesses,” he said.

Commission president Iain Ross has sought the views of the Morrison government, the ACTU and employers on what action it should take in this year’s review to “deal with” its previous decision to delay rises in impacted industries until as late as February this year.

Workers in industries most ­affected by the pandemic, including accommodation and food services, arts, retail, aviation and tourism, had to wait seven months for a 1.75 per cent rise.

Under last year’s decision, workers in less-affected industries, including construction and manufacturing, had their pay rise delayed until last November, while frontline workers and those in industries least impacted by the pandemic received an increase in July. The ACTU wants the commission to abandon the approach and award a $26.38-a-week increase to all minimum-wage and award-reliant workers from July 1, saying last year’s “very low” rise was delayed at least three months for 75 per cent of recipients.

ACTU secretary Sally McManus on Thursday attacked the Ai Group call. “The underlying problem with our economy is record-low wage growth and the recovery is predicated on strong consumer spending which will not occur without wage growth,” she said.

“In the face of all this, the AiG is proposing freezing wages for at least 25 per cent of the workforce. Suppressing wages is an act of self-harm for employers and not in the national interest.”

Ai Group has proposed workers in the most affected industries be required to wait until January to get an increase. Workers in less-affected sectors would get the rise from September, while frontline workers would get a rise in July.