Minimum Wage

Minimum wage pay decision begins to repair damage done by WorkChoices

By the ASU - fighting for your rights at work

Today's pay decision for more than a million award-dependent workers has begun to address some of the damage caused by WorkChoices, but more needs to be done, according to the ACTU.

The $21.66 minimum wage rise will provide some relief for working families from spiralling petrol, housing and grocery costs, but does not bridge the gap in living standards under two years of WorkChoices.

The ACTU has welcomed the decision by the Australian Fair Pay Commission, which recognises that working families are doing it hard.

"Today's decision is a small step towards repairing the damage caused to the wages and conditions of the most vulnerable members of the workforce under WorkChoices," said ACTU secretary Jeff Lawrence.

"But there is much still to be done. The ACTU eagerly awaits the introduction of legislation to abolish WorkChoices and introduce a truly independent industrial umpire.

"The restoration of rights to collective bargaining and protection from unfair dismissal are essential to improving the lives of working Australians."

About 1.1 million workers are affected by today's decision, including approximately 100,000 who earn the federal minimum wage which will rise by 57 cents an hour to $543.78 (or 4.15 per cent a week). The pay rise will not take effect until October.

Those affected include cleaners, retail and hospitality staff, child care workers, and farm labourers.

The ACTU had called for a wage rise of $26 a week. In its decision, the Commission noted that increasing minimum wages would have only a minor impact on wages and inflation for the economy as a whole.

The ACTU is pleased that the Fair Pay Commission has acknowledged the difficulties faced by working families in making ends meet in a tough environment, and ignored the calls of some employer groups to cap wage rises at levels as low as $10 a week.

"Almost two-thirds of award dependent workers have suffered a decrease in their real earnings as a result of the first two determinations by the Commission before today," Mr Lawrence said.

"The Australian Fair Pay Commission has recognized its job is to ensure there is an adequate safety net for the low paid, and has explicitly taken account of the considerable financial stress experienced by many low-income households.

"This decision is better than may have been expected, but there will still be many workers whose real wages will be eroded by inflation.

"Only getting rid of WorkChoices will ensure long-term relief for all workers."

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