Two percent, and not a penny more: Business takes hard line on minimum wage
Unions and employer groups are still far apart over minimum wage increases for Australia’s lowest paid workers.
Employer groups are pushing for a minimum wage increase of no more than 2 per cent. Photo: ABC
The Fair Work Commission decides each year whether to increase the minimum wage for employees.
Australian Chamber of Commerce and Industry chief executive Andrew McKellar said a rise should be no more than two per cent, which is less than half of the ACTU is seeking at five per cent.
Mr McKellar said a larger boost to pay packets would be “very difficult” for businesses, especially smaller firms.
Business Council of Australia chief executive Bran Black said the commission should be cautious about the impact of wage hikes on inflation in a bid to prevent the Reserve Bank keeping interest rates higher for longer.
But ACTU secretary Sally McManus said a five per cent increase would not be inflationary as consumer prices moderated.
The federal government will make its submission to the commission on Thursday, where it will argue tax cuts are not a substitute for wage boosts.
Australia’s lowest-paid workers cannot have their pay go backwards during a cost-of-living crisis, the submission reads.
Labor’s tax cuts are expected to relieve some financial pain when they come into effect in July.
The current minimum wage is $23.23 per hour, or $882.80 per week after the 5.75 per cent increase in July last year.
