A resurgent Australian economy with forecasts of strong GDP and jobs growth over the next two years makes the case for a decent rise to minimum wages even more compelling.
The ACTU will today (Monday) present its case before Fair Work Australia for a $27 a week pay rise for about 1.4 million workers covered by industrial awards.
ACTU Secretary Jeff Lawrence said new economic forecasts in last week’s Federal Budget had strengthened unions’ $27 a week claim and undermined arguments from employer groups for a further wage freeze.
“It is appalling that millions of Australians were forced to suffer a wage freeze for more than 18 months given the strength of the economy,” Mr Lawrence said. “Last week’s Budget shows the Australian economy is in good shape and will improve over the next 12 months.
“The Budget includes improved forecasts for sustained economic and employment growth, increasing average hours worked and inflation within the Reserve Bank target range. Unemployment is forecast to fall to 5% in the coming year. That adds up to 450,000 new jobs over the next two years.
“It is essential that low-paid workers share fairly in the economic recovery after shouldering the burden of last year’s downturn. Our claim is responsible. Australia's economic outlook is good and the recovery is in progress, but more importantly, the case for a pay increase is strong.
“We are seeking a decent and reasonable pay rise to restore the real value of minimum wages for award-dependent workers.”
The ACTU’s claim is for an extra $27 a week, or 71 cents an hour. It would lift the minimum wage above $15 an hour for the first time, to $570.78 a week.
This week’s hearing is the first under the new wage-setting mechanism established by the Fair Work Act. It replaces the so-called Fair Pay Commission, set up during the Howard Government’s WorkChoices, whose decisions resulted in cuts to real wages of up to $97.75 a week.
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