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ABC News
4 days ago
- Business
- ABC News
Fair Work Commission to decide how much minimum wages will rise
Isabella Higgins: Australia's three million lowest paid workers will soon find out how much their pay packets will rise this year. The Fair Work Commission is set to determine the increase to minimum and award wages today. Many are looking for reprieve from the mounting cost of living, but business and employer groups warn too large a lift risks fuelling inflation. Political reporter Nicole Hegarty has more from Parliament House. Nicole Hegarty: For Australia's lowest paid, every dollar counts. Sally McManus: When you're a minimum wage worker it's all essential. So you don't save money, you survive. Nicole Hegarty: And with the cost of living biting, that's truer than ever. Sally McManus is the Secretary of the Australian Council of Trade Unions. The Fair Work Commission is set to reveal how much minimum and award wages will increase from July. The ACTU is asking for a 4.5% increase. Sally McManus: The Fair Work Commission didn't order enough for these workers to be able to keep the same position they were back in 2019. So part of our claim is catch up claim. Nicole Hegarty: But businesses and employers are also under pressure as rents rise and consumers tighten their belts. The Australian Retailers Association is recommending an increase of no more than 2.5% on top of the 0.5% superannuation guarantee increase. In its submission it argues for an equitable and modest increase to the minimum wage that helps households without increasing business costs beyond what is needed to ensure wages keep pace with higher prices. Cost of living dominated the election campaign and the re-elected Albanese government is now asking for an economically sustainable real wage increase for the almost 3 million Australians on minimum and award wages. Treasurer Jim Chalmers says that can be achieved without pushing up inflation. Jim Chalmers: The submission that we take reflects all of our economic objectives and primarily making sure that when people work hard they can get ahead. Nicole Hegarty: It's a position employer groups have challenged. The Retailers Association warning in its submission additional wage pressure risks fuelling renewed price pressures and undermining economic progress. Chris Wright is a professor of work and labour market policy at the University of Sydney and says the international evidence is that there is room for an increase. Chris Wright: The OECD has identified that there is scope for wage increases, especially for the lowest paid to occur without there being inflationary pressures of any significant scale. Nicole Hegarty: And as the conversation turns to how to address Australia's productivity problem, Professor Wright says a wage rise may have a positive impact. Chris Wright: Workers who feel like they're being paid fairly are more likely to be productive in their jobs and they're more likely to stay in their jobs. Nicole Hegarty: The Workplace Relations umpire has historically decided on increases that fall somewhere between the demands of business and unions. And along with workers who rely on the wages at the heart of this decision, they'll find out soon how much pay packets will grow as of July. Isabella Higgins: Nicole Hegarty there.
ABC News
4 days ago
- 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.
