Tuesday, May 03, 2005

What future for the minimum wage?

A Pastoral Letter for the Feast of St Joseph the Worker
1 May 2005
The Minimum Wage in an Age of Prosperity and Wealth

This could be the last time a Minimum Wage Case of the current type is heard. The Government has criticised the AIRC for supposedly lacking “economic rigour” and has suggested that alternative mechanisms for setting the minimum wage are being examined.

The Catholic Commission, ACCER, has expressed its concerns to Government that the wage decisions, affecting the lives of so many low income Australians, could be taken from the Industrial Relations Commission. This independent institution is obliged to consider a fair minimum in the context of general living standards, the likely impact of increases on the economy and with special concern for the low paid.

Those seeking to restrain minimum wage increases often argue that it impedes employer demand and keeps people who are unemployed out of work. But a failure to appreciate the common interests and experiences of the unemployed, the underemployed and the low paid is likely to result in unjust proposals for the reduction of minimum wages and the creation of jobs.

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