Unions, interest groups respond to Fair Work Commission minimum wage decision

Workers on a minimum wage have been given a 5.2% wage rise as a result of yesterday’s decision from the Fair Work Commission.

This means that the new national minimum wage will be $812.60, or $21.38 an hour.

The decision follows the commission’s consideration of a range of submissions from governments, unions and other associations.

Submissions from the federal, NSW and Western Australian governments did not specify a quantum.

The Victorian government suggested the increase should be at least 3.5% and be applied to everyone.

Submissions from the Australian Services Union and the Australian Council of Trade Unions each asked for 5.5%.

The Australian Catholic Council for Employment Relations called for a 6.5% increase in the minimum wage.

Submissions from the business lobby groups said a more modest increase was in order, with the Australian Industry Group pitching for a 2.5% increase applicable to all and the Australian Chamber of Commerce and Industry seeking a 3% increase.

An impending decision from the commission on the minimum wage sparked debate during the election campaign, with the then opposition leader, now prime minister, Anthony Albanese saying Australian workers should not go backwards in terms of their wages given the rising costs of living.

“During the election campaign, we promised to put in a new submission to the Fair Work Commission’s annual wage review to argue that people on low wages should not go backwards. We delivered on that promise in our first fortnight in office,” a government media release says.

“Today, the Fair Work Commission has delivered a 5.2% rise in the minimum wage, slightly above headline inflation.”

The Ai Group said that the increase will add fuel to the current “inflation fire”.

“There is a major risk that the 5.2%% increase that has been awarded to the national minimum wage, with increases of between 4.6% and 5.2% to award rates, will fuel inflation and lead to even higher interest rates; even more hardship for people with mortgages, personal loans or credit card debts; and add substantially to the risk of unemployment and underemployment – particularly for unskilled employees,” Innes Willox, chief executive of the national employer association Ai Group, said.

“The cost increase will be difficult to absorb for businesses that are already struggling to cope with big increases in material and energy costs, interest rate rises, supply chain disruptions and labour shortages.”

The minimum wage decision comes as the Finance Sector Union is in the middle of enterprise agreement negotiations with Westpac, with the bank offering between a 2.75% and 3.5% increase dependent on staff classifications.

FSU national secretary Julia Angrisano said the union wants the Westpac workers to receive a 6% rise.

“Anything less than a 6% increase at Westpac will represent a real wage cut. Bank profits are up, productivity is up and unemployment is down, which should drive wages up,” Angrisano said.

“But employers like Westpac still can’t accept that cost of living pressures on families require a decent pay rise.”

The Electrical Trades Union said it was concerned that apprentices will receive less than half of the $40 increase announced yesterday and that could impact the apprenticeship completion rate, which is already at 52%.

“Thanks to this decision, you earn more working two weekend penalty rate shifts on minimum wage than you do for a full week as an apprentice,” said Michael Wright, the union’s acting secretary.

“No wonder our completion rates are a disgrace — young workers are having to quit their trade just to make ends meet. This is bad news for them, bad news for the industry and bad news for the nation.”

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