ACTU wants $30 more for working poor

Trade unions will petition the industria­l umpire today for an above-inflation wage rise of $30 a week for low-paid workers.

Trade unions will petition the industria­l umpire today for an above-inflation wage rise of $30 a week for low-paid workers, as business groups pushed for “cautio­us” and “modest” rises.

The ACTU will call for the 4.6 per cent rise in the weekly minimum wage earned by 1.86 million Australians to $686.90 per week, or $18.08 an hour, in its submission to the Fair Work Commission’s annual wage review, 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 in submissions lodged with the commission yesterday, 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.

But 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”.

The unions will cite Australia’s strong 3 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.

ELIZABETH COLMAN