Carbon rebate 'should not affect minimum wage'
Clay Lucas
May 22, 2012


AN INCREASE to the minimum wage for more than 1 million of Australia's lowest-paid workers must not be reduced because of carbon tax compensation, the ACTU has told the national industrial umpire. ACTU assistant secretary Tim Lyons yesterday appeared before a full bench of Fair Work Australia, to put the union's case for a $26-a-week wage rise for the 1.4 million people on the lowest award pay scales.   

The ACTU argues that the hourly rate for those on the minmum wage of $589.30 should be lifted, by 68 cents an hour from $15.51 to $16.19. This would raise weekly minimum wage to $615.30.

And Mr Lyons said it was crucial that carbon tax compensation not have an impact on possible wage increases for low-paid workers.     


The annual wage increase, which Fair Work Australia decides on each year, ''should not be undercut by the panel awarding a smaller increase than it otherwise would have'', Mr Lyons said. ''Any calculation of over-compensation suggests that it will be modest.''

''The households most likely to receive significant overcompensation as a result of the package are those that rely on pensions and benefits, rather than those that rely on wages.''

Last year, Fair Work Australia granted a $19.40 wage rise to low-paid workers, taking the minimum wage to $589.30.

The Australian Industry Group and other employer bodies have questioned whether the increase to the minimum wage this year should be reduced, because of the carbon tax compensation going to households.   

Fair Work Australia president Iain Ross last week questioned why the Gillard government's promised ''overcompensation'' for the introduction of the carbon tax should not be taken into account when deciding the minimum wage.

In its answer to Justice Ross, published by Fair Work yesterday, the Australian government's representative on the panel, John Kovacic, said it was important ''the introduction of a carbon price and the associated household assistance package should not affect the panel's decision in relation to varying the National Minimum Wage''.

From July 1, Mr Kovacic told Fair Work, the introduction of the carbon price would cause a jump in the cost of living of about 0.7 per cent for households, as measured by the consumer price index, which is over and above underlying inflation.

''The household assistance package of tax cuts and increases to transfer payments is designed to ensure that the most vulnerable households are not left worse off under the changes,'' he said.

ACTU secretary Dave Oliver, speaking before yesterday's hearing, said since 2000 company profits had increased by 117 per cent, while the minimum wage had risen by just over 30 per cent.   

Read more: http://www.theage.com.au/opinion/political-news/carbon-rebate-should-not-affect-minimum-wage-20120521-1z1ee.html#ixzz1vXVyVIUf

The ACTU should cut the massive salaries of its executives and reduce its membership fees for its down trodden members especially those that have been ripped off by the HSU and its crooked bosses.