Latest news with #AustralianCouncilofTradeUnions
The Advertiser
6 days ago
- Business
- The Advertiser
Wage rise not enough for lowest-paid workers: union
An increase to the minimum wage won't be enough for the nation's lowest-paid workers to live on, the Australian Council of Trade Unions says. The Fair Work Commission announced its decision to lift the minimum wage by 3.5 per cent on Tuesday, with almost three million low-paid workers set to earn an extra $32 a week. The rise will come into effect from July, with the minimum wage rising to $24.95 an hour, benefiting more than one-fifth of the workforce. Sally McManus, the secretary of the ACTU, said workers had gone backwards in real terms and needed to catch up to where they were before the COVID-19 pandemic. "We used to have this idea in Australia that a full-time wage should be a living wage, like one you can live on, and we don't anymore, because it's slipped back," she told ABC radio on Wednesday. "So we will be sort of setting our sights in the future about making sure that the very bottom number of the minimum wage, which is less than 50 grand, is actually a livable wage." Federal Employment Minister Amanda Rishworth said she was disappointed the coalition had labelled the decision another expense for small business. "I'm not sure that the argument that we pay people less and we don't see our lowest paid workers get a wage increase, is actually the answer to what is broadly the discussion in this country, which is how do we improve productivity," she told ABC's RN. While the boost in pay packets is set to lead to small growth in the wage price index, economists say the change won't be substantial enough to alter the likelihood of the Reserve Bank cutting interest rates later this year. National Australia Bank senior markets economist Taylor Nugent said there would be little impact on the wage price index, which is examined by the central bank when deciding whether or not to alter the cash interest rate. "We don't see any implications of (the Fair Work Commission's) decision for our own or official wages growth forecasts," he said. CreditorWatch chief economist Ivan Colhoun said the commission's decision is set to put a lower limit on inflation. "(The) decision of a real wage increase will tend to put something of a floor under inflation without an improvement in productivity performance," he said. The business sector has hit out at the wage decision, saying the increased labour costs would result in many employers having to lay off staff. The Council of Small Business Organisations had argued for a wage rise of between two and 2.5 per cent. Mr Colhoun said the commission's decision sought to strike a balance between a wage rise for workers alongside uncertainty in the global economy. An increase to the minimum wage won't be enough for the nation's lowest-paid workers to live on, the Australian Council of Trade Unions says. The Fair Work Commission announced its decision to lift the minimum wage by 3.5 per cent on Tuesday, with almost three million low-paid workers set to earn an extra $32 a week. The rise will come into effect from July, with the minimum wage rising to $24.95 an hour, benefiting more than one-fifth of the workforce. Sally McManus, the secretary of the ACTU, said workers had gone backwards in real terms and needed to catch up to where they were before the COVID-19 pandemic. "We used to have this idea in Australia that a full-time wage should be a living wage, like one you can live on, and we don't anymore, because it's slipped back," she told ABC radio on Wednesday. "So we will be sort of setting our sights in the future about making sure that the very bottom number of the minimum wage, which is less than 50 grand, is actually a livable wage." Federal Employment Minister Amanda Rishworth said she was disappointed the coalition had labelled the decision another expense for small business. "I'm not sure that the argument that we pay people less and we don't see our lowest paid workers get a wage increase, is actually the answer to what is broadly the discussion in this country, which is how do we improve productivity," she told ABC's RN. While the boost in pay packets is set to lead to small growth in the wage price index, economists say the change won't be substantial enough to alter the likelihood of the Reserve Bank cutting interest rates later this year. National Australia Bank senior markets economist Taylor Nugent said there would be little impact on the wage price index, which is examined by the central bank when deciding whether or not to alter the cash interest rate. "We don't see any implications of (the Fair Work Commission's) decision for our own or official wages growth forecasts," he said. CreditorWatch chief economist Ivan Colhoun said the commission's decision is set to put a lower limit on inflation. "(The) decision of a real wage increase will tend to put something of a floor under inflation without an improvement in productivity performance," he said. The business sector has hit out at the wage decision, saying the increased labour costs would result in many employers having to lay off staff. The Council of Small Business Organisations had argued for a wage rise of between two and 2.5 per cent. Mr Colhoun said the commission's decision sought to strike a balance between a wage rise for workers alongside uncertainty in the global economy. An increase to the minimum wage won't be enough for the nation's lowest-paid workers to live on, the Australian Council of Trade Unions says. The Fair Work Commission announced its decision to lift the minimum wage by 3.5 per cent on Tuesday, with almost three million low-paid workers set to earn an extra $32 a week. The rise will come into effect from July, with the minimum wage rising to $24.95 an hour, benefiting more than one-fifth of the workforce. Sally McManus, the secretary of the ACTU, said workers had gone backwards in real terms and needed to catch up to where they were before the COVID-19 pandemic. "We used to have this idea in Australia that a full-time wage should be a living wage, like one you can live on, and we don't anymore, because it's slipped back," she told ABC radio on Wednesday. "So we will be sort of setting our sights in the future about making sure that the very bottom number of the minimum wage, which is less than 50 grand, is actually a livable wage." Federal Employment Minister Amanda Rishworth said she was disappointed the coalition had labelled the decision another expense for small business. "I'm not sure that the argument that we pay people less and we don't see our lowest paid workers get a wage increase, is actually the answer to what is broadly the discussion in this country, which is how do we improve productivity," she told ABC's RN. While the boost in pay packets is set to lead to small growth in the wage price index, economists say the change won't be substantial enough to alter the likelihood of the Reserve Bank cutting interest rates later this year. National Australia Bank senior markets economist Taylor Nugent said there would be little impact on the wage price index, which is examined by the central bank when deciding whether or not to alter the cash interest rate. "We don't see any implications of (the Fair Work Commission's) decision for our own or official wages growth forecasts," he said. CreditorWatch chief economist Ivan Colhoun said the commission's decision is set to put a lower limit on inflation. "(The) decision of a real wage increase will tend to put something of a floor under inflation without an improvement in productivity performance," he said. The business sector has hit out at the wage decision, saying the increased labour costs would result in many employers having to lay off staff. The Council of Small Business Organisations had argued for a wage rise of between two and 2.5 per cent. Mr Colhoun said the commission's decision sought to strike a balance between a wage rise for workers alongside uncertainty in the global economy. An increase to the minimum wage won't be enough for the nation's lowest-paid workers to live on, the Australian Council of Trade Unions says. The Fair Work Commission announced its decision to lift the minimum wage by 3.5 per cent on Tuesday, with almost three million low-paid workers set to earn an extra $32 a week. The rise will come into effect from July, with the minimum wage rising to $24.95 an hour, benefiting more than one-fifth of the workforce. Sally McManus, the secretary of the ACTU, said workers had gone backwards in real terms and needed to catch up to where they were before the COVID-19 pandemic. "We used to have this idea in Australia that a full-time wage should be a living wage, like one you can live on, and we don't anymore, because it's slipped back," she told ABC radio on Wednesday. "So we will be sort of setting our sights in the future about making sure that the very bottom number of the minimum wage, which is less than 50 grand, is actually a livable wage." Federal Employment Minister Amanda Rishworth said she was disappointed the coalition had labelled the decision another expense for small business. "I'm not sure that the argument that we pay people less and we don't see our lowest paid workers get a wage increase, is actually the answer to what is broadly the discussion in this country, which is how do we improve productivity," she told ABC's RN. While the boost in pay packets is set to lead to small growth in the wage price index, economists say the change won't be substantial enough to alter the likelihood of the Reserve Bank cutting interest rates later this year. National Australia Bank senior markets economist Taylor Nugent said there would be little impact on the wage price index, which is examined by the central bank when deciding whether or not to alter the cash interest rate. "We don't see any implications of (the Fair Work Commission's) decision for our own or official wages growth forecasts," he said. CreditorWatch chief economist Ivan Colhoun said the commission's decision is set to put a lower limit on inflation. "(The) decision of a real wage increase will tend to put something of a floor under inflation without an improvement in productivity performance," he said. The business sector has hit out at the wage decision, saying the increased labour costs would result in many employers having to lay off staff. The Council of Small Business Organisations had argued for a wage rise of between two and 2.5 per cent. Mr Colhoun said the commission's decision sought to strike a balance between a wage rise for workers alongside uncertainty in the global economy.
Sky News AU
03-06-2025
- Business
- Sky News AU
Millions of workers set to receive pay rise from July 1 following major Fair Work Commission decision
Millions of Australians on minimum and award wages will receive a pay rise from July 1 following a decision handed down by the Fair Work Commission on Tuesday. The commission's expert panel revealed that the national minimum wage will increase by 3.5 per cent, or $0.84 per hour. This will lift the weekly full-time wage to $947.95, or $49,294 annually—an overall increase of $1,666 per year for full-time workers. The change affects approximately 2.6 million workers, including those on modern awards, and comes amid ongoing cost-of-living pressures. The Australian Council of Trade Unions (ACTU) had called for a 4.5 per cent increase to lift the minimum wage to $25.18 per hour. Employer groups had argued for a more modest increase of 2.6 per cent, in line with the current inflation rate. The Albanese government, which did not nominate a specific figure in its submission, urged the commission to deliver a real wage rise above inflation. Employment and Workplace Relations Minister Amanda Rishworth told Sky News on Sunday that she supported an increase. 'We have put forward a submission that has called for an economically responsible real wage increase,' she said. 'That's been consistent with the position we've taken as the government. We don't want to see our minimum and award wage workers go backwards.' She added that critics of the government's approach had underestimated the strength of recent economic indicators. 'Now, of course, the Prime Minister was derided for this, like as if this was somehow economically irresponsible,' she said. 'The last 18 months we've seen real wages grow. We've also seen inflation coming down. And in the last monthly jobs figures we've seen 89,000 jobs created.' The increase will come into effect from July 1, giving a boost to low-paid workers, particularly casual employees. The minimum wage was previously $24.10 per hour, or $915.90 per week, equating to an annual salary of $47,627.06 for a full-time worker.
ABC News
03-06-2025
- Business
- ABC News
Millions of workers to get 3.5 per cent pay rise after Fair Work Commission annual ruling
Millions of Australian workers will get a 3.5 per cent pay rise from July 1, following the Fair Work Commission's annual review of the minimum wage and award agreements. Inflation is currently at 2.4 per cent annually. While the national minimum wage covers a small proportion of the workforce, about a fifth of all employees in Australia are paid under awards. The FWC ruling was announced today after lobbying from various groups. The federal government had argued for an "economically sustainable real wage increase" — while not putting a firm figure on its request, it indicated support for a wage rise above inflation. Business groups including the Australian Retailers Association and the Australian Chamber of Commerce and Industry had called for no more than 2.5 per cent, arguing any more would put too much pressure on employers. Australian Industry Group was slightly higher at 2.6 per cent. Meanwhile, the Australian Council of Trade Unions had lobbied for a rise of up to 4.5 per cent. The FWC boosted the minimum wage and awards by 3.75 per cent last year, after higher inflation pushed real wage growth further down in comparison.
West Australian
29-05-2025
- Business
- West Australian
Fair Work Commission to hand down annual wage review on Tuesday
More than 2.6 million low-paid Australian workers could be set for a boost to their pay packets, with the Fair Work Commission just days away from handing down its annual wage review. The independent body is set to hand down its determination in Sydney on Tuesday, with the Australian Council of Trade Unions (ACTU) pushing for a 4.5 per cent lift in the minimum wage. This would boost it to $25.18 per hour, lifting the salary for an annual full-time worker by $2143 to $49,770. The FWC's determination, which will come into affect from July 1, applies to about 2.6 million workers who are not on an existing award or agreement. The Albanese government has backed an above-inflation increase, beyond 2.4 per cent, however it has not nominated a specific number. Newly installed Employment and Workplace Relations Minister Amanda Rishworth has previously called for 'an economically responsible real wage increase' while stating that the 'setting of the minimum wage is a matter for the Fair Work Commission'. 'We do need to consider the economic conditions, but we also believe that in those economic conditions, workers deserve a real wage increase,' she said earlier this month. ACTU boss Sally McManus has recently criticised a call by the Australian Restaurant and Cafe Association to lift the minimum wage by 2 per cent, arguing the increase was below inflation and amounted to a real wage cut. The industry body represents businesses that employ about 500,000 workers and includes major hospitality players like Merivale, Fink Group and Van Haandel. 'Not only does this employer group want to dramatically cut the pay of low-paid workers, but they also have the gall in the next breath to complain that customers then aren't spending enough in their businesses,' she said. 'As far as shooting themselves in the foot, it's a good effort because few local cafe or restaurant owners can afford for ordinary Australians to take a real pay cut. 'It will be their own restaurants, cafes, pubs, hotels and bars crying out for people with enough spare cash to go and spend their money there.' Currently, the minimum wage is $24.10 per hour, which equates to $915.90 or an annual full-time salary of $47,627.06.
Yahoo
16-05-2025
- Business
- Yahoo
Albo backs pay rise for millions of Aussies
Australia's lowest paid workers could benefit from another pay rise with the federal government pushing the Fair Work Commission to increase wages to help battling Aussies with cost of living pressures. The Albanese Government made the submission days after being sworn in and submitted a recommendation to the Fair Work Commission to award Australia's lowest paid workers a substantial increase. Since the Albanese Government took office in 2022 the minimum wage has grown $143 a week, and was set at $24.10 per hour or $915.90 per week last July, a joint statement from Treasurer Jim Chalmers and Employment Minister Amanda Rishworth said. The statement said the government was now recommending wages increase further to provide a substantial real wage increase to Australia's award workers. An increase to the minimum wage would benefit about three million workers, including cleaners, retail workers and early childhood educators. 'This position is both economically responsible and fair,' Mr Chalmers and Ms Rishworth said. 'It will ensure low paid workers can get ahead as inflation moderates and real wages continue to grow across the economy.' The government did not provide a figure for the increase, but the Australian Council of Trade Unions has pushed the Commission to lift the minimum wage by 4.5 per cent at the upcoming annual wage review. A 4.5 per cent lift would increase the minimum wage to $25.18 per hour or $2143 a year to $49,770 for a full-time worker. A decision on the new award is usually delivered in June, with the new rate kicking off from July 1.
