This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/world/2013/jun/03/minimum-wage-rise-week

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Minimum wage to rise by $15.80 a week Minimum wage to rise by $15.80 a week
(about 3 hours later)
Australia's 1.5 million lowest paid workers will get a $15.80 a week pay rise, less than last year. Australia's 1.5 million lowest-paid workers will get a modest $15.80 a week pay rise that has pleased no one.
The national minimum wage will rise to $622.20 a week, from $606.40 currently, the Fair Work Commission ruled on Monday. Business groups and unions say the increase is a blow to small and medium-sized businesses and workers alike, with the ACTU saying it amounts to $1.80 a day or a loaf of bread.
It is less than the $30 a week increase sought by unions but more than the $5.80 wanted by business groups. The Fair Work Commission on Monday awarded a modest increase in the minimum wage, less than last year's $17.10 a week pay rise and just over half the $30 sought by unions.
Last year the national minimum wage rose by $17.10 a week. The 2.6 per cent increase barely covers the rise in the cost of living, ACTU secretary Dave Oliver said.
Fair Work Commission president Justice Iain Ross said there would be a 2.6% increase in the minimum wage, noting a number of considerations led to the decision to award a lower increase than last year. "The decision that has come out of the Fair Work Commission today is a kick in the guts to 1.5 million low-paid workers and their families across this country," he told reporters.
“While the economic outlook remains favourable, GDP growth is expected to ease to slightly below trend in 2013/14 and the unemployment rate is expected to increase slightly,” Justice Ross said. Part-time cleaner Marie Angrilli said the pay rise would go nowhere near covering her expenses.
“Inflation is expected to remain comfortably within the RBA's target range of two to three per cent. "It is a struggle to pay gas, electricity, come to work every day, pay petrol," the 64-year-old said.
“In addition to these considerations, the superannuation guarantee increase to apply from 1 July this year has also been a moderating factor in our assessment of the adjustment that should be made to minimum wages. "One-dollar-eighty a day doesn't really go anywhere for me."
“As a result, although it would not be appropriate to quantify its effect, the increase in minimum wages we have determined in this review is lower than it otherwise would have been in the absence of the superannuation guarantee increase.” The Australian Chamber of Commerce and Industry, which wanted any increase limited to $5.80 a week, labelled the rise excessive.
He said the commission had also taken into account the effect of the carbon price on inflation figures and the lower than forecast recent inflation outcome. ACCI chief executive Peter Anderson said the increase would inflate the wages bill for business by $1.5 billion over the next year and was a "body blow" to the small and medium-sized business community which do the bulk of employing in Australia.
"It's not a decision that is modest. It is not a decision that is sympathetic to the business community," he said.
"It's more than even the rate of increase in prices has warranted."
Commission president Justice Iain Ross said the modest rise was lower than it would have been without the increase in the superannuation guarantee from July 1, to 9.25 per cent from nine per cent.
He said while the economic outlook remained favourable, GDP growth was expected to ease to slightly below trend in 2013/14 and the unemployment rate was expected to increase slightly.
The commission rejected arguments that certain awards received differential treatment, with ACCI's Mr Anderson saying it had ignored businesses that were not in the fast lane of the economy.
The commission flagging an increase for next year would further frustrate the business community, Mr Anderson said.
Justice Ross said the recent increase in labour productivity could provide the capacity to address the declining relative position of low-paid workers and they should be allowed to share in increasing community living standards.
Mr Oliver said the wage decision was astounding considering the commission's acknowledgment that productivity levels were up.
Justice Ross said modern award wages had fallen over the past decade, relative to all measures of average earnings and earnings inequality was increasing.
"If not addressed, these trends may have broader implications both for our economy and for the maintenance of social cohesion in Australia," Justice Ross said.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.Our editors' picks for the day's top news and commentary delivered to your inbox each morning.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning. Enter your email address to subscribe.Our editors' picks for the day's top news and commentary delivered to your inbox each morning. Enter your email address to subscribe.
Our editors' picks for the day's top news and commentary delivered to your inbox every weekday.Our editors' picks for the day's top news and commentary delivered to your inbox every weekday.