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Australia risks having 'US-style working poor': unions

Thursday, 31 Mar 2016 07:58:10

A waitress serves food in Melbourne in September 2008. (AAP)

The Australian Council of Trade Unions (ACTU) has urged the Fair Work Commission to lift the national minimum wage by $30 a week.

The union has lodged its submission as part of the Commission's annual wage review.

ACTU secretary Dave Oliver said more than 1.8 million of the nation's lowest paid workers should receive $686.90 a week, or $18.07 an hour.

The current national minimum wage is $656.90 per week, or $17.29 an hour.

"The minimum wage is still sitting around 40 per cent of what average wage earnings are and if this trend continues we could end up with a US-style working poor in this country."

He said the minimum wage had barely kept pace with inflation.

"This is an insult to every low-paid worker in the country, $10 in an environment where childcare costs are going up, utility costs are going up, education and housing affordability are skyrocketing," he said.

The ACTU denied that jobs were at risk if wages were increased.

Wage hike should not make work harder to find: industry group

In its submission, the Australian Chamber of Commerce urged the Commission to increase the minimum wage by no more than 1.2 per cent, or $7.90 a week.

Australian Chamber spokesperson Patricia Forsythe said more than 730,000 Australians were out of work, including more than 250,000 young people.

She said any jump in wages should not make it harder for people, particularly youth, to find work.

"Economic data shows there is spare capacity in the labour market, indicating that many low-paid and low-skilled workers are struggling to find work," Ms Forsythe said in a statement.

"We must be careful that the minimum wage does not exacerbate the risk of unemployment for these workers."

The Australian Industry Group said the minimum wage should increase by 1.6 per cent, or about $10.50 a week.

Group chief executive Innes Willox said economic growth remained patchy, so a modest increase was needed.

"The panel needs to fully take into account the needs of those whose jobs will be threatened (including many low paid workers) if an excessive minimum wage increase is awarded," he said.

AustraliaPlus


 

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