Labor’s July wage rise pledge for nations lowest-paid

A Labor government would urge the Fair Work Commission to back a July wage increase for low income earners.

Opposition Leader Bill Shorten and Labor candidate for Leichhardt Elida Faith at Skyrail. Picture: Anna Rogers

A federal Labor government would urge the Fair Work Commission to back an above-inflation wage increase for the nation’s low paid from July and lift the base wage that must be paid to overseas workers by 20 per cent as Bill Shorten seeks to make wages policy a key element of his election pitch.

With the FWC due to hand down its annual minimum wage ruling weeks after the May 18 election, Labor said it would make a statement or submission urging a “real” minimum wage increase for the nation’s low-paid if elected.

Labor also said it would lift the minimum wage to overseas workers on 457-style visas by 20 per cent – from $53,900 to $65,000. The temporary skilled migration income threshold has been frozen since 2013 and Labor pledged to annually index the new threshold.

Mr Shorten said Labor would make a “full-throated, full bodied” submission to the commission to get wages moving in a “modest and meaningful way”.

“We’re going to use the full force of commonwealth advocacy to support a wage improvement, a wage increase, for 2.2 million Australians,’’ he said.

“We will make the case to the independent umpire. The government’s had six years to demonstrate they’re fair dinkum on wages. They’re just not. Wages are at a record low.”

He declined to nominate the amount he believed that minimum and award wages should increase, a position consistent with previous commonwealth submissions to the commission.

Labor workplace relations spokesman Brendan O’Connor said an ALP government would urge the commission to support an above-inflation rise for the low-paid in contrast to the Coalition, which had not backed a real rise in the minimum wage for six years.

Yesterday’s announcement builds on Labor’s plan to reverse penalty rate cuts and its living wage policy, which proposes to direct the commission next year to identify a living wage target and phase in minimum wage increases for the low-paid workforce.

Jobs and Industrial Relations Minister Kelly O’Dwyer said: “Bill Shorten doesn’t have a plan on wages, just a plan to impose more than $387 billion in higher taxes — hurting the economy, hurting jobs and hurting your wallet.”

ACTU secretary Sally McMan­us said unions supported the commitment to a living wage.

Australian Chamber of Commerce and Industry CEO James Pearson said the downside risk to the economy was recognised by the opposition in its proposals for budget surpluses to provide a buffer against economic uncertainty.