Minimum wage announcement live: Fair Work Commission to hand down wage decision
Fair Work Commission #FairWorkCommission
Just nowWed 15 Jun 2022 at 1:26am
By Kelsie Iorio
More from the Australian Chamber of Commerce and Industry
CEO Andrew McKellar said just a little while ago that the biggest challenges businesses are facing at the moment include supply chain constraints, labour shortages and energy prices.
“All of these things are adding to pressures on the supply side, they are pushing up input costs, and that is feeding through into inflation,” he says.
“Any decision that comes at this point in time, at the upper end of the range of possible outcomes, will add to costs to business. As we’ve said, that cost will be an extra $7.9 billion hitting the bottom line of affected businesses as a result of this.”
He says the decision highlights that the existing national wage case process has “had its day”.
12m agoWed 15 Jun 2022 at 1:14am
By Shiloh Payne
October increase of 4.6 per cent for some award wage earners
Here are the industries who will see a 4.6 per cent increase to their award wage from October 1:
20m agoWed 15 Jun 2022 at 1:06am
By Kelsie Iorio
Pay increase for aged care workers is great — but more needs to be done for the sector
The Aged and Community Care Providers Association have just released a statement saying it welcomes the wage increase decision, but that it’s “concerned that inadequate indexation of Commonwealth funding means it will be impossible to realise improvements in quality of care.”
Aged care, disability care and home care workers are among the groups who are paid at or close to the minimum wage.
ACCPA’s interim CEO Paul Sadler says this pay increase isn’t a magic fix for the struggling aged care workforce.
“Everyone knows aged care workers need a significant pay increase, but without additional support from government aged care providers will continue to face what the Royal Commission described as an impossible choice between investing in quality and finding savings to keep the doors open,” he says.
“A significant wage increase for our workforce is essential to attract new people and improve quality of care to older Australians, but when two-thirds of providers are already running at a loss year-on-year, we need the wage increase to be funded by the federal government.”
23m agoWed 15 Jun 2022 at 1:03am
By Kelsie Iorio
Treasurer Jim Chalmers has weighed in
He’s also welcomed the decision.
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25m agoWed 15 Jun 2022 at 1:02am
By Shiloh Payne
Community groups say wage increase ‘recognises’ pandemic workers
Here’s the latest from political reporter Jake Evans:
The acting head of the Australian Council of Social Services, Edwina MacDonald, has called the 5.2 per cent minimum wage increase a “welcome recognition of those who carried us through our toughest times”.
But she said the upcoming Employment Summit being convened by the new federal government would be a chance to improve all workers wages.
“We must do more to improve the lives of people on low and modest incomes. At the forthcoming Employment Summit, ACOSS will work together with unions and business to find ways to lift real wages in an orderly way while restoring full employment,” Ms MacDonald said.
“The summit should focus on three things: getting more people into paid work, lifting wages without triggering inflation, and adequate, predictable paid working hours.”
26m agoWed 15 Jun 2022 at 1:00am
By Kelsie Iorio
So what’s the alternative then?
This question was put to Australian Chamber of Commerce and Industry boss Andrew McKellar after he expressed concerns about the minimum wage increase.
He says:
“For minimum wages, fine, that is the 180,000 people on the lowest wages, the wage safety net.
“When it flows through into the modern award system, this needs to be looked at on a case-by-case basis. We need to get back to much more effective enterprise bargaining, flexible wage settings, driven by the market.”
30m agoWed 15 Jun 2022 at 12:57am
By Kelsie Iorio
Key Event
Chamber of Commerce and Industry unhappy with the decision
Andrew McKellar has also been speaking — he’s the chief executive officer of the Australian Chamber of Commerce and Industry.
He’s described the announcement as “very much towards the upper end of the range of possible outcomes”.
“By our calculation, this will add $7.9 billion in costs to the affected businesses over the year ahead, so that will be a very considerable burden that those businesses will either have to take to the bottom line or pass onto their customers,” he says.
“It comes at a time when inflation is emerging as one of the most urgent challenges facing the Australian economy and if we are to address that, if we are to remain competitive, then, clearly, this is not a decision that will help in those circumstances.”
33m agoWed 15 Jun 2022 at 12:54am
By Shiloh Payne
What are some minimum wage jobs?
Here’s an example of some industries that pay close to the minimum wage:
These workers can expect a pay rise of $40 a week as soon as July.
35m agoWed 15 Jun 2022 at 12:51am
By Kelsie Iorio
ACTU secretary says pay increase is deserved
Sally McManus says the $40 a week increase could be the difference between being able to do a proper grocery shop and having to cut back on food for some families.
“People on the absolute minimum wage, which used to be just above $40,000, and now after this decision is just above $42,000,” she says.
“That is only 2 per cent of the overall workforce, however, there are a lot of people very close to the minimum wage”
Ms McManus calls out supermarket, fast food, aged care, disability support and home care employees as examples of worker groups who are often paid at or close to minimum wage.
“They will get close to $40 a week and they absolutely deserve it. These people are the people who have kept our economy and our society going through two hard years. They deserve a pay increase which means that they can afford to pay the bills.”
41m agoWed 15 Jun 2022 at 12:46am
By Kelsie Iorio
Key Event
Will we end up facing another wage crisis?
Sally McManus has just been asked this question — she says the ACTU has always been concerned about the impacts of further inflation.
She says the union has been “mindful of not adding to inflation”, but that workers need to be able to keep up with the cost of living.
“It was only yesterday that the Reserve Bank Governor said he thinks inflation will get to around 7 per cent around Christmas,” she says.
“That is halfway through the pay increase. We were mindful of that problem which is why we were asking for a 5.5 per cent increase and we thought that was reasonable.
“We don’t know what is going to happen into the future, in terms of inflation, whether or not it is a spike that will quickly come off or whether or not it is going to be something that continues longer than a year. If it continues longer than a year, obviously, we will need to make sure workers do get pay rises that mean they keep their heads above water.”
44m agoWed 15 Jun 2022 at 12:43am
By Kelsie Iorio
But delays for some work groups are ‘disappointing’
Sally McManus says the decision to delay the increase for some sectors is “disappointing” — she’s called out aviation and hospitality as examples.
“We know airlines and aviation at the moment are very busy and have recovered, and we believe that is not a reasonable thing to withhold those increases for that period of time,” she says.
45m agoWed 15 Jun 2022 at 12:41am
By Kelsie Iorio
ACTU ‘really happy’ with wages decision
Australian Council of Trade Unions secretary Sally McManus says the decision will make a “significant difference to the pressures that low-paid workers are under”.
“This decision is one that is reasonable and it is fair,” she says.
“The union movement is happy and proud that we have fought for this increase and that it is going to make a big difference for so many workers.”
1h agoWed 15 Jun 2022 at 12:23am
By Shiloh Payne
Key Event
When will the pay rises come through?
Political reporter Jane Norman is on ABC News Channel, she says the wage increase will come through from July 1.
“The expectation is that, from July 1, the pay rises will filter through, a 5.2 per cent increase to the minimum wage taking the weekly wage to about $812.60, which is a $40 increase,” she said.
“A similar level increase for people on the award wage, but the percentage is slightly lower of 4.6 per cent for people on the awards.”
1h agoWed 15 Jun 2022 at 12:18am
By Shiloh Payne
Here’s what the Fair Work Commission’s president had to say
Fair Work Commission president Iain Ross has just announced the minimum wage rise, here’s what went into the decision.
“Given the current strength of the labour market, the adjustments we propose to make will not have a significant adverse effect on the performance and competitiveness of the national economy.
In our view, awarding an increase in modern award minimum wages of the magnitude proposed by ACCER, some 6.5 per cent, and the ACTU — 5.5 per cent — would, in the present economic circumstances, pose a real risk of significant adverse effects to the national economy.
We acknowledge that the increases we have determined will mean a real wage cut for some award-reliant employees.
This is an issue that can be addressed in subsequent reviews.”
1h agoWed 15 Jun 2022 at 12:13am
By Shiloh Payne
Key Event
Minimum wage to increase by 5.2 per cent
The Fair Work Commission has ruled the minimum wage should increase by 5.2 per cent.
It equates to an extra $40 per week.
The decision affects more than two million workers across the country, and takes the hourly rate to $21.38.
President Iain Ross said the Fair Work Commission made the decision because of soaring inflation, and the severe impact that has on some of Australia’s lowest-paid workers.
The ACTU had been calling for an increase of 5.5 per cent, while employer groups had been calling for increases of between 2.5 and 3 per cent.