Howard Fair Pay Omission

The pay rise for award workers, the lowest in ten years, is below the rate of inflation and means the living standards of many working Australians will go backwards says the ACTU.

"The pay rise of between $5 and $10 a week for minimum award wage workers is below the Treasury's forecast of 2.75% inflation for the year, meaning low paid workers will suffer a pay drop in real terms.

Misleading claims from employer groups
This contradicts the misleading claims of employer groups, including Gary Brack from Employers First on Channel Seven's Sunrise program this morning, the Fair Pay Commission and the Government that have all understated the forecasted level of inflation," said ACTU President Sharan Burrow.

Releasing an analysis of the Howard Government's Pay Commission's decision today, the ACTU said the Commission's head, Ian Harper, was also wrong to claim that the disposable incomes of minimum wage workers were keeping pace with the rest of the community.

Yesterday Professor Ian Harper wrongly claimed:
"When reductions in tax liabilities are also taken into account, the disposable incomes of employees receiving the standard FMW have not deteriorated relative to disposable incomes in the community" AFPC decision 5 July 2007, p 13

Insulting low-paid workers
But ACTU research shows that the Federal Minimum Wage (FMW) has declined to just 63% of average weekly earnings, after tax, from yesterday's pay commission decision.

"It is insulting that in a time of strong economic growth that the low paid should fail to receive a real wage increase and that their living standards should decline relative to the rest of the community," said Ms Burrow.