Australia's lowest-paid workers will get a $24-a-week pay rise from next month (July) after the Fair Work Commission agreed to increase the minimum wage. The unions have broadly welcomed the commission's decision as a good step toward workers earning a decent living.
The Fair Work Commission has set the new minimum wage at $719.20 a week, or just under $19 an hour. While that figure is well below the 7.2 per cent increase the unions wanted, the 3-and-a-half per cent increase is well above inflation. The ruling means a real rise in wage growth for 2.3 million of Australia's lowest-paid workers. Fair Work Commission president Justice Iain Ross says, compared to this time last year, economic indicators now point to a healthy national economy and labour market.
The Australian Council of Trade Unions' ((ACTU)) proposed increase of $50 a week was deemed too risky at hurting employment. But ACTU secretary Sally McManus has welcomed the decision anyway, saying it is the largest percentage increase the commission has awarded. Still, she warns there is more work to do.
Workers who appeared alongside Ms McManus at a press conference in Melbourne were less impressed by the move, though. A cleaner who works in a shopping centre says the ruling will do little to help her buy a house or have children.
All modern-award minimum wages will be increased by 3.5 per cent as well.
