‘Reckless’ vs ‘greed’: Employers cite Donald Trump tariff chaos to limit wage rises for low-paid

Employers say economic uncertainty justifies keeping the next minimum wage rise for 2.9 million low-paid workers to 2.6 per cent, while the ACTU says few are in trade-exposed industries.

ACTU secretary Sally McManus has accused employers of ’greed’. Picture: NewsWire / Monique Harmer

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Employers have seized on the economic uncertainty caused by Donald Trump’s tariffs to justify their bid to keep the next minimum wage increase for 2.9 million low-paid workers confined to 2.6 per cent, labelling the ACTU claim for a $41 a week rise as “reckless”.

But ACTU secretary Sally McManus hit back at the “feeble excuse”, accusing the industry groups of “greed”.

In its reply submission to the Fair Work Commission’s annual wage review, the Australian Industry said the recent announcement of wide-ranging tariffs by the US government had introduced a considerable degree of uncertainty to Australia’s economic outlook.

“They will have complex, volatile and differential effects on industries, inflation, employment and more for our highly trade-exposed economy,” Ai Group chief executive Innes Willox said on Friday.

“Expectations for future economic performance should be lowered as a result.”

He said the commission should take a “cautious and considered approach” to adopt a minimum wage rise of not more than 2.6 per cent, or $23.80 a week, reflecting the “challenging economic situation facing Australia and the world”.

Unions are seeking a 4.5 per cent rise, equivalent to a $41.22-a-week increase, which, if successful, would lift the annual full-time rate by $2143 to $49,770.

But Mr Willox said the “reckless” claim exceeded the capacity of business to pay.

“When considered in the broader context of the deteriorating and uncertain global environment that will drag on growth, it is unsustainable to award an increase of such a quantum,” he said.

“In recent years, the (commission) has adopted an approach that real minimum and award wages should grow in line with trend productivity over the medium to long term, while recognising the need for short-term flexibility.

“The ACTU’s 4.5 per cent claim ignores the need for balance and pushes for an increase disconnected from our economic and productivity conditions.”

Ms McManus sought to ridicule the employer claims.

“Bosses’ groups will hide behind any excuse to not lift wages for low-paid workers,” she said. “Australia is well placed to weather Trump’s tariff policy, whatever it is today.

Ms McManus said nearly all workers whose pay was linked to the annual wage review were not in trade-exposed sectors.

“Many are low-paid, and none of them deserve to cop this feeble excuse by the bosses not to pay fair wages,” she said.

“This is just greed. CEO pay rose by 14 per cent last year. Don’t hold your breath thinking they’ll freeze their pay this year waiting for Trump’s tariff circus to play out.”

In its reply submission, the Australian Chamber of Commerce and Industry also cited the impact of the United States tariff arrangements to back its case for a 2.5 per cent increase, equivalent to $22.90 a week.

While direct trade with the United States represented only 4.6 per cent of Australia’s goods exports, the chamber said the broader impact was expected to come from disruptions to Australia’s key trading partners, particularly China.

“In the face of such global uncertainty, we cannot afford to impose further cost increases on businesses and simply presume the economy will remain resilient,” the chamber said.

“Wage growth, if not carefully managed and aligned with productivity, could compound pressures on employers and undermine economic stability at a time when confidence and investment are already fragile.”