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Minimum wage to rise by $15.80 a week | Minimum wage to rise by $15.80 a week |
(4 months later) | |
Australia's 1.5 million lowest-paid workers will get a modest $15.80 a week pay rise that has pleased no one. | Australia's 1.5 million lowest-paid workers will get a modest $15.80 a week pay rise that has pleased no one. |
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. | 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. |
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. | 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. |
The 2.6 per cent increase barely covers the rise in the cost of living, ACTU secretary Dave Oliver said. | The 2.6 per cent increase barely covers the rise in the cost of living, ACTU secretary Dave Oliver said. |
"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. | "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. |
Part-time cleaner Marie Angrilli said the pay rise would go nowhere near covering her expenses. | Part-time cleaner Marie Angrilli said the pay rise would go nowhere near covering her expenses. |
"It is a struggle to pay gas, electricity, come to work every day, pay petrol," the 64-year-old said. | "It is a struggle to pay gas, electricity, come to work every day, pay petrol," the 64-year-old said. |
"One-dollar-eighty a day doesn't really go anywhere for me." | "One-dollar-eighty a day doesn't really go anywhere for me." |
The Australian Chamber of Commerce and Industry, which wanted any increase limited to $5.80 a week, labelled the rise excessive. | The Australian Chamber of Commerce and Industry, which wanted any increase limited to $5.80 a week, labelled the rise excessive. |
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. | 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 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." | "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. | 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. | 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 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. | 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. | 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. | 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. | 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. | "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. |
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