Job & wages data show ‘coast is clear’ for $26 a week pay rise for low paid workers

The latest ABS jobs data and Government wages figures shows that despite a tight job market there is no wages pressure on inflation and that the coast is clear for a $26 a week pay rise for low paid Australian workers say unions.

Unions are pushing for a $26 a week rise in award minimum wages for around 1.6 million low paid workers in this year’s national pay commission wage case to compensate for real pay cuts under Work Choices and rising interest rates, petrol and other basic living costs.

Today’s ABS jobs data shows the labour market is strong, with an extra 14,800 jobs created in the past month, workforce participation continuing at a record high and a lift in the number of unemployed people looking for full time work.

Also today, wages data by the federal Department of Workplace Relations shows average annual wage increase for workers on collective agreements down slightly to 3.8% with hospitality workers getting only a 2.8% average pay rise.
ACTU Secretary Jeff Lawrence said:

“The coast is clear for the Fair Pay Commission to give minimum wage workers a decent pay rise this year.

“There is no sign of a wages breakout or a significant softening of the job market.

“At the same time, it is clear that low paid workers are struggling to cope with rising home loan costs and rising rents as well as high petrol prices and increases in the cost of food and other basic living expenses.

“The wages of more than a million minimum award wage workers dropped in real terms by up to $44 a week or $2,200 a year over the last three years, according to ACTU research submitted to the Fair Pay Commission.

“These workers deserve a decent pay rise this year.
The ACTU $26 a week claim would raise the current Federal Minimum Wage from $522.12 to $548.12 a week (up to $14.42 an hour).

The increase in the minimum award wage for people at the tradesperson’s rate would be 4.2% — equal to other wage movements (Wage Price Index) over the last year.

“The employer groups that have opposed our pay claim don’t have a leg to stand on. There is no justification for the restaurant and catering industry’s proposed pay freeze for low paid workers and the real pay cut proposed by the ACCI,” said Mr Lawrence.