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Bridget McKenzie #BridgetMcKenzie
Unions are seeking a $2,200 per year rise in the minimum wage, upping their demands as surging inflation reduces workers’ pay in real terms.
The Australian Council of Trade Unions had originally asked for a 5% rise but will now ask the Fair Work Commission for 5.5%, less of an ambit claim now inflation is tipped to hit 5.5% by mid year and 6% by year’s end.
As runaway inflation has already triggered a mid-election campaign interest rate rise, cost-of-living pressures and wage stagnation have emerged as the most important issues for voters ahead of the 21 May election.
Unions have responded by increasing pay demands in the understaffed aged care sector and in state public services, subject to a 2.5% pay rise cap that amounts to a real wage cut.
In the minimum wage case, which sets the pay of 2.7m workers, the ACTU is now asking for the hourly rate to rise from $20.33 to $21.45.
The ACTU’s earlier claim was lodged in late March, after the Morrison government’s budget predicted inflation would peak at 4.25% mid-year.
The ACTU secretary, Sally McManus, said “a 5.5% increase is what is now needed just to ensure people tread water, anything less has them drowning in bills”.
“Scott Morrison’s government’s submission to the Fair Work Commission is silent on backing a pay increase that keeps up with the cost of living.
“Instead it dedicates a whole section to the benefits of low-paid work.”
In the earlier round of submissions, the Australian Industry Group called for a 2% increase, or $15.45 a week to the minimum wage.
The Restaurant and Catering Industry Association called for no increase in the minimum wage, arguing take-home pay is already rising due to job shortages, on top of super increases and budget giveaways.