25 March, 2014 | Media Release
The ACTU calls for a fair and adequate raise to the minimum wage to combat rising inequality as housing price increases leave minimum wage earners without any hope of ever owning a home.
The ACTU will lodge a submission to the Fair Work Commission(FWC) on Friday March 28 calling for a wage increase for Australia’s lowest paid including cleaners, retail and hospitality staff, child care workers, farm labourers, and some factory workers.
ACTU Secretary, Dave Oliver, said the Australian housing market had ballooned, with average house prices increasing by 250 per cent in the past 20 years making housing the biggest affordability dilemma for most workers.
However for minimum wage earners it was now all but impossible to buy a home.
“For those on a low wage, home ownership is a now pipedream. The minimum wage has less than doubled in the past 20 years compared to a 250 per cent increase in housing prices,” he said.
“Someone on a minimum wage of $622 per week has enough to cover their basic costs and that’s about it. These workers tell us it’s impossible to save up a deposit, let alone afford the weekly repayments.”
“The only way low income earners can afford to buy a home is to work multiple jobs but if all these jobs are low income then it still remains extremely tough.
“Working multiple jobs to afford the basics is moving us towards the ‘working poor’ scenario they have in the US – something Australians have made it very clear they don’t want.”
“When high-earning employers and politicians come out and talk about ‘tightening belts’ they’re suggesting a cleaner who spends nearly 50 percent of their wage on rent needs to budget harder. How is this fair and reasonable?
“Many minimum wage earners have been working all their lives caring for older Australians in aged or community care, they work farms, they clean schools and hospitals or look after young children in childcare.
“These are tough and important jobs and yet saving up for something as integral as a home is nearly impossible even after years of work.
Mr Oliver said the annual minimum wage review was the only chance for a pay increase for 1.5 million of the lowest paid workers.
“Every year we make a case for these workers. We will ask the commission to ignore false claims about a wages blow out or outdated arguments about minimum wage increases costing jobs. These arguments have been refuted by leading economists.
“The best outcome will be one that stops the gap growing between low paid workers and the rest of the community.”
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