Minimum Wage

Unions push for $21 a week pay rise for low-paid workers to stimulate economy and safeguard jobs

Unions are seeking a $21 a week pay rise for workers on minimum wages to protect jobs by maintaining the purchasing power of working families and stimulate the economy.

The ACTU has welcomed the passage of new Fair Work Laws through Parliament last Friday but says more needs to be done to protect the jobs and incomes of working Australians in tough economic times.

Launching the unions' pay claim today, ACTU Secretary Jeff Lawrence said more than 1.3 million award-reliant workers must get a pay rise that maintains the real value of their wages in this year's National Minimum Wage Case.

"Decent wages are a vital defence against a downturn in jobs and the prospect of a serious recession because they stimulate demand," Mr Lawrence said.

"The $21 per week pay rise would lift the Federal Minimum Wage from the current $543.78 a week to just $564.78 per week, only $14.86 per hour.

"The ACTU urges the Fair Pay Commission to reject recent calls by employer lobby groups for a wage freeze, which would mean further real pay cuts.

"More than a million low paid Australians - nine out of every 10 workers who rely on minimum award wages - have already suffered real pay cuts of as much as $77 a week under the Howard Government's pay commission."

Unions are concerned that peak employer groups have indicated they will be arguing for a wage freeze for the low paid at a time when working families need all the income security they can get.

He said arguments by business groups that lifting the minimum wage would cause unemployment were self-serving and misleading.

"There is no credible evidence that moderate, regular and predictable increases in minimum wages harm unemployment or inflation, yet business lobby groups trot out these tired old lines every year.

"A reduction in real minimum wages would be both unfair and counter-productive when the Government wants to stimulate domestic demand to support the economy.

"Life is only getting harder for the low-paid, who are typically women and young people, casuals and part-time workers.

Food and housing costs have risen significantly over the past year, and they have the spectre of the economic slowdown hanging over their heads."

About 1.3 million workers are reliant on the National Minimum Wage Case each year as their only opportunity to increase their wages.

"This increase would help low-paid workers suffering from the increasing cost of living and would help stimulate the economy during the downturn," said Mr Lawrence.

More information

Download a copy of the ACTU submission to the Fair Pay Commission here
Download a copy of the minimum wage fact sheet here