The work has officially supported a pay rise for low-wage workers in a formal presentation presented today to the nation’s wage authority.
Key points:
- Labor has recommended a 5.1% increase for low-wage workers
- The party pledged to increase the election despite resistance from the coalition
- The Fair Work Commission will determine a pay rise this month
The Fair Labor Commission will rule on a pay rise for the country’s lowest workers this month.
Minister of Employment and Labor Relations Tony Burke said the new government had taken the first step today to end the previous government’s “deliberate” low-wage policy.
“Ten years of low-wage government as a deliberate feature of design … are over today,” he said.
“That’s what it looks like when you have a government that is willing to fight for better wages.”
In the final weeks of the election campaign, now Prime Minister Anthony Albanese took advantage of the cost of living concerns to promise that his government would support a substantial increase in the minimum wage.
Albanese said the increase should not be lower than the inflation rate, which stood at 5.1%.
It would increase the minimum hourly wage by $ 1 to $ 21.36.
The call sparked outrage from former Prime Minister Scott Morrison, who warned that it would overheat the economy and further increase inflation.
He also criticized Mr Albanese for what he called “interference” in the work of the wage authority.
The decision on whether to raise salaries and how much is ultimately up to the independent FWC.
Burke said the formal presentation explicitly recommended a wage increase in line with inflation.
“The presentation says this: ‘In considering its decision on wages for this year, the government recommends that the Fair Work Commission ensure that the real wages of low-paid workers in Australia do not fall,” Burke said.
“We don’t want anyone to go back … but that’s the worst thing about low wages.
“It is now in the hands of the Fair Work Commission how they manage it.”
He noted that companies were already paying more than the minimum wage due to labor shortages, but that the presentation was to “make sure” that those with the minimum wage do not back down in real terms.
In a statement, Prime Minister Anthony Albanese said a real wage increase for lower workers would also help close the gender pay gap.
“Many low-paid workers are young, women, with casual jobs, and they are much more likely to run into financial difficulties,” she said.
“These low-paid workers were also at the forefront of providing essential services during the COVID-19 pandemic, including the retail, hospitality, elderly care, cleaning and childcare sectors.”
Unions have pushed for a slightly higher 5.5 per cent increase, while the Coalition has refused to put a figure on what it believes would be a fair increase, saying the decision should be left to the FWC.
Posted yesterday at 5:00 am Friday, June 3, 2022 at 5:00 am, updated yesterday at 5:33 am Friday, June 3, 2022 at 5:33 am