Minimum Wage

Low paid win $27 per week increase

The Australian Fair Pay Commission today handed down its first wages decision, in which it decided to award a significant increase of $27.36 per week to the Federal Minimum wage and to minimum 'award' rates of pay below $700 per week and an increase of $22.04 per week to rates above $700. It operates from 1 December 2006.

The ACTU has welcomed the decision, calling it a victory for unions and low paid workers. In its submission to the Fair Pay Commission the ACTU argued that a $30 per week increase was needed to protect the low paid and this claim was almost granted in full.

The ACTU notes that the decision is a clear rejection of the position that the Federal Government has taken over many years on minimum rates as well as a rejection of employer demands for much lower increases in minimum wages.

The ASU also welcomes the decision which will ensure that wages paid to the lowest paid workers are not outstripped by inflation. ASU National Secretary Paul Slape says that the decision is good for many Australian workers on minimum wages.

"The ASU strongly supported the ACTU's case for a significant increase in minimum rates and we believe that the outcome is fairest for those workers who need the increase most," he said.

The decision is not as beneficial for workers on pay scales derived from awards which are in excess of $700 per week. This includes many ASU members in social and community services and in other sectors dependent on 'award' wages. These workers, many of whom have little capacity to bargain for above award wages, get an increase of 3.1% or less.

The decision applies to employees previously dependent on Federal awards for wage and salaries who are employed by constitutional corporations. Their minimum wages are now set by "Pay and Classification Scales" based on the previous award. It also applies to employees whose wages and salaries are determined by enterprise agreements or contracts of employment but only in the unlikely event that the minimum rates set by the Fair Pay Commission exceed the rates set under the agreement or contract rates of pay.