Business wants 'modest' wage increase

The ACTU says its proposed $27 a week increase in the minimum wage is modest and appropriate but employer groups say it is unrealistic.

Some workers could lose their jobs or have their hours cut if there is anything more than a modest increase in the minimum wage, a business group says.

But the ACTU argues its claim for a $27 a week increase is modest, appropriate and necessary to prevent further erosion to low-paid workers' living standards.

The Australian Industry Group, which wants the Minimum Wage Panel to award a $10.25 a week rise, says the ACTU's proposal is unrealistic and unsustainable, and would be unfair to those whose job prospects it would damage.

"The interests of those in secure jobs should not be put ahead of those looking for work and those whose jobs could be lost or hours of work reduced if the wage increase awarded by this panel this year is not modest," its latest submission says.

The AiGroup and Australian Chamber of Commerce and Industry, which wants an increase of no more than $5.70 a week, both oppose the ACTU's proposal for new award provisions for an additional 0.5 per cent contribution to superannuation.

The ACTU says the employer groups' proposed wage increases would amount to a real wage cut when taking into account inflation.

"A $27 per week pay rise for the 1.86 million Australians workers on minimum wages will provide a $3.1 billion economic stimulus," ACTU secretary Dave Oliver said on Tuesday.


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Source: AAP


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