ALP won’t make a submission on minimum wage

The ALP won’t echo the ACTU’s push for a $30 a week rise to the minimum wage for 1.8 million low paid workers.

Opposition workplace relations spokesman Brendan O’Connor said the party would not intervene in the process to set the minimum wage.

The federal Opposition has chosen not to make a submission to the independent umpire on the minimum wage and won’t echo the ACTU’s push for a $30 a week rise to the minimum wage for 1.8 million low paid workers.

While Labor made a submission to the Fair Work Commission on penalty rates ten days ago, Opposition workplace relations spokesman Brendan O’Connor said today the party would not intervene in the process to set the minimum wage.

“Labor has faith that the Fair Work Commission will provide a decent outcome,’” Mr O’Connor said.

Speaking after the unions launched their submission to the Fair Work Commission’s minimum wage review, Mr O’Connor said “it is understandable that the ACTU is looking for a reasonable pay increase”.

However, he added: “But we ultimately will rely upon the Fair Work Commission to take into account the fact that prices are going up, wages are stalling and indeed at the same time you have the Federal Government looking to cut penalty rates for low paid workers insofar as their submission to the Fair Work Commission.”

The ACTU is seeking an above-inflation wage rise of 4.6 per cent week, as business groups pushed for “cautio­us” and “modest” rises.

The ACTU’s claim would take the minimum wage to $686.90 per week, or $18.08 an hour, on the grounds Australia was seeing an “increasing underclass of working poor”.

ACTU secretary Dave Oliver said the $30 a week rise was “vital if we’re to halt the alarming slide in living standards that is threatening the economic wellbeing of one in five Australians”.

But the Australian Chamber of Commerce and Industry argued for a $7.90 a week increase and industry­ lobby group AI Group argued for an increase of $10.50 per week, based on Australia’s “very high minimum wage” compared with other comparable countries and “patchy” economic growth.

The AI Group cited “the fact that economic growth remains patchy across sectors and across locations, with aggregate business incomes, profits and investment still underwhelming.”

“It is important that the Expert Panel not put the interests of those in secure jobs ahead of the needs of those searching for jobs, or for more work, and the needs of those whose jobs will be threatened (including many low paid workers) if an excessive minimum wage increase is awarded”.

ACCI recommended “a cautious approach ... given current economic conditions, including low growth in non-statutory wages and national income” opting to submit a rise of up to 1.2 per cent, bringing the national minimum wage to $664.80 per week.

The unions cited Australia’s strong three per cent economic growth relative to other OECD countries and the discrepancy between minimum wage levels and average weekly full time earnings in their submission.

An independent submission from the United Voice union which represents low-paid hospitality workers, recommended the Panel to adopt a target-setting approach similar to the Reserve Bank of Australia’s interest-rate setting mechanism.

“Australia is losing its distinctive, egalitarian, minimum wage,” its submission said.

“United Voice wants a medium-term target for the level of the minimum wage that reflects the needs of low paid workers and the values of our country.”

The national minimum wage is currently $17.29 per hour or $656.90 per 38 hour week, before tax. Casual employees covered by the national minimum wage also get at least a 25 per cent casual loading.

The Reserve Bank of Australia has forecast a rise in inflation of 1.5 per cent this year and 2-3 per cent in 2017.

Labor made a submission on the minimum wage last year — otherwise, the party hasn’t intervened in the process in recent years.