Earn
ACTU pushes for $26 a week minimum wage increase
The unions have called for a $26 a week raise to the minimum wage in Australia, warning that Australia’s recovery from the COVID-19 pandemic is subject to a pay increase.
ACTU pushes for $26 a week minimum wage increase
The unions have called for a $26 a week raise to the minimum wage in Australia, warning that Australia’s recovery from the COVID-19 pandemic is subject to a pay increase.
The Australian Council of Trade Unions (ACTU) put forward a submission to the Fair Work Commission on Friday during its annual minimum wage review.
The trade unions want a 3.5 per cent rise in minimum wage and awards for a full-time worker, which amounts to $26.38 a week.
They highlighted that last year’s very low increase of just 1.75 per cent – delayed at least three months for 75 per cent of recipients – means that we have fallen behind other countries in trying to establish a living wage at 60 per cent of median income.
ACTU secretary Sally McManus said that if wages don’t increase, it will threaten the entire economic recovery as money in the hands of workers creates sustainable economic growth and not just bigger businesses.
“If it is a V-shaped recovery for profits, it needs to be for wages as well. Profits rose 8.9 per cent through 2020, and the Reserve Bank says wages growth should be above 3 per cent,” Ms McManus said.
“A 3.5 per cent increase in the minimum wage will flow through to one in five workers – 2.3 million people, 61 per cent of whom are women. Almost half of all casual employees rely on the annual minimum wage outcome for any pay rise.”
ACTU pointed out that the Reserve Bank has repeatedly made clear that wage growth is too low and this is a brake on economic growth. The recovery from the pandemic has so far increased profits but not wages, and labour’s share of GDP has fallen to record lows.
Even in the absence of another major shock, Mr Lowe conceded “it is a long way back to seeing wage increases consistent with the inflation target”.
“The point I want to emphasise is that for inflation to be sustainably within the 2–3 per cent target range, wages growth needs to be materially higher than it is currently,” Mr Lowe said.
“The evidence strongly suggests that this will not occur quickly and that it will require a tight labour market to be sustained for some time.
“Predicting how long it will take is inherently difficult, so there is room for different views. But our judgement is that we are unlikely to see wages growth consistent with the inflation target before 2024,” he said.
About the author
About the author
Salary
Is Australia headed for the ‘Great Resignation’?
A wave of resignations from Australian workers is expected in the next six months. ...Read more
Salary
Earnings surge in lockdown, but is a slump ahead?
A new report from CBA has shown that it may actually pay to be in lockdown, as growth in household income surged ahead in NSW and Victoria. ...Read more
Salary
RBA sets sights on 4% unemployment
The RBA has updated its key objectives in order to jolt the Australian economy into growth, including a two-decade low unemployment rate of 4 per cent. ...Read more
Salary
Aussie women required to work 61 extra days to earn the same pay
61 days is how much extra time a woman must spend in the workforce to achieve the same financial outcome as her male counterpart, with the gender gap expected to grow further, research has revealed. ...Read more
Salary
Pandemic sees spike in remote-work job postings
Businesses are looking far and wide to attract key staff members as lockdowns accelerate the move towards online working, meaning businesses can now attract staff who do not need to be in the office, ...Read more
Salary
Workers, businesses wait on lockdowns before deciding next moves
Australian businesses and staff alike are waiting to see what will happen post the COVID-19 pandemic before deciding whether to increase staffing levels or change their jobs, government figures have s...Read more
Salary
Unemployment falls to record low but worrying trends emerge
Australia’s official unemployment rate has fallen to its lowest point since 2008, but that is not a sign of a resilient jobs market, official figures have revealed. ...Read more
Salary
Labour shortages fail to lift wages
Despite the business community’s hunger for new workers, Australia’s wage growth remains stagnant, official figures have revealed. ...Read more
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
Salary
Is Australia headed for the ‘Great Resignation’?
A wave of resignations from Australian workers is expected in the next six months. ...Read more
Salary
Earnings surge in lockdown, but is a slump ahead?
A new report from CBA has shown that it may actually pay to be in lockdown, as growth in household income surged ahead in NSW and Victoria. ...Read more
Salary
RBA sets sights on 4% unemployment
The RBA has updated its key objectives in order to jolt the Australian economy into growth, including a two-decade low unemployment rate of 4 per cent. ...Read more
Salary
Aussie women required to work 61 extra days to earn the same pay
61 days is how much extra time a woman must spend in the workforce to achieve the same financial outcome as her male counterpart, with the gender gap expected to grow further, research has revealed. ...Read more
Salary
Pandemic sees spike in remote-work job postings
Businesses are looking far and wide to attract key staff members as lockdowns accelerate the move towards online working, meaning businesses can now attract staff who do not need to be in the office, ...Read more
Salary
Workers, businesses wait on lockdowns before deciding next moves
Australian businesses and staff alike are waiting to see what will happen post the COVID-19 pandemic before deciding whether to increase staffing levels or change their jobs, government figures have s...Read more
Salary
Unemployment falls to record low but worrying trends emerge
Australia’s official unemployment rate has fallen to its lowest point since 2008, but that is not a sign of a resilient jobs market, official figures have revealed. ...Read more
Salary
Labour shortages fail to lift wages
Despite the business community’s hunger for new workers, Australia’s wage growth remains stagnant, official figures have revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
