Australian Politics Forum - We Need A Increase In The Minimum Wage

thegreatdivide

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Re: We Need A Increase In The Minimum Wage
Reply #60 - Jun 1^st, 2024 at 12:47pm

Frank wrote on Jun 1^st, 2024 at 12:27pm:

thegreatdivide wrote on Jun 1^st, 2024 at 12:10pm:

Frank wrote on May 31^st, 2024 at 8:48pm:

ANY scheme that says government is the answer to the questions of the universal human condition is a lie. And they are INSISTENT lies. They insist because they are ideological.

Another neoclassical macro-economic ignoramus chimes in.

The topic is the minimum wage, a sub-category of economics, NOT the "universal human condition" - whatever that obfuscation is, as cover to deny the eradication of entrenched poverty achievable by government which is not deluded by neoclassical 'scarcity' economics.

Mutual obligation will be reintroduced in a revived work-for-the-dole scheme that was intended to steer 40,000 Indigenous Australians towards meaningful activities but has been voluntary for the past three years.

The Australian understands only about one in four “participants” in the federal work-for-the dole scheme are doing any approved work or activities in exchange for fortnightly benefits.

Yes, that's an incompetent government steeped in obsolete neoclassical "scarcity" economics (lauded by The Australian) for you.

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whiteknight

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Re: We Need A Increase In The Minimum Wage
Reply #61 - Jun 3^rd, 2024 at 8:47am

2.6 million minimum and award wage earners set for July 1 pay boost

With business and unions at loggerheads over the decision, the workplace umpire will hand down its annual pay verdict on Monday.

News.com.au
June 3, 2024

The pay packets of 2.6 million workers are in line for a boost on July 1, with the workplace umpire to release its annual wage decision on Monday morning.

The Fair Work Commission’s annual wage review, which affects minimum and award wage earners, or about one in five workers, is expected to hand down an increase of between 3.5 per cent and 4 per cent on the pay rate of $23.23 an hour.

In submissions to the Commission, peak employee representative, the ACTU, has advocated for an increase of 5 per cent, arguing workers squeezed by simmering price pressure deserve a hike to their pay.

Meanwhile, the Australian Chamber of Commerce and Industry has pushed for an increase of 2 per cent, which will likely amount to a real wage cut, which it argues reflects the increased cost pressures facing businesses, particularly smaller firms.

Unions and business groups have been at odds over their pay claims to the annual wage review.

Mirroring its previous two interventions in the annual wage case, the Albanese government has submitted that Australia’s lowest paid workers “don’t go backwards”, in effect advocating for an increase of at least the rate of inflation, which is 3.6 per cent on most recent measures.

“We want to see strong and sustainable wages growth because we see this as part of the solution to the cost-of-living challenge, not part of the problem,” Treasurer Jim Chalmers said ahead of the decision.

“We’ve gone into bat for Australian workers, recommending the Commission ensure real wages for low-paid workers don’t go backwards.”

But with progress on lowering inflation stalling since December, economists warned that an increase in excess of 4 per cent could further complicate the Reserve Bank’s inflation fighting efforts which have already slugged borrowers with 13 rate hikes in the last 25 months.

“There is still a lingering risk of another rate hike of 25 basis points, especially if there is an upside surprise of the Fair Work decision on the minimum and award wage on Monday, and June quarter CPI,” UBS chief economist George Tharenou said.

Treasurer Jim Chalmers has pushed for an inflation-matching increase for low-paid workers.

That view was echoed by ACCI chief executive Andrew McKellar who said the Commission needed to account for still weak productivity growth alongside the stage three tax cuts and increase to the superannuation guarantee, both to commence on July 1.

“To go above that target band of inflation, we would need to see evidence that there was strong underlying productivity growth in the economy. This has not been the case at all,” Mr McKellar said.

“The commission should take account of the fact that there are significant measures to offset other cost of living pressures – that should be used as an opportunity to moderate wage inflation in the year ahead.”

However ACTU secretary Sally McManus rubbished suggestions that the Commission’s decision would feed through to broader wage increases across the economy, pointing to the easing in price pressures despite last year’s increase.

“I think it’s abundantly clear that that’s not the case; those two things are not connected,” Ms McManus said.

“We have a bargaining system and we have a system based on decisions made by the Fair Work Commission … so it’s not possible because they’re decoupled for there to be a wage price spiral.”

Some economists have warned an outsized wage increase could complicate the Reserve Bank’s efforts to tame stubborn inflationary pressures.

In last year’s determination, the commission for the first time split the minimum and award pay rates, increasing the minimum wage to $23.23 an hour, up 8.6 per cent, while increasing award rates by a more modest 5.75 per cent.

The decision, which was the largest increase in more than a decade, fuelled concerns that it would stoke inflation, and hold interest rates higher for longer.

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thegreatdivide

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Re: We Need A Increase In The Minimum Wage
Reply #62 - Jun 3^rd, 2024 at 11:45am

whiteknight wrote on Jun 3^rd, 2024 at 8:47am:

2.6 million minimum and award wage earners set for July 1 pay boost

With business and unions at loggerheads over the decision, the workplace umpire will hand down its annual pay verdict on Monday.

News.com.au
June 3, 2024

The pay packets of 2.6 million workers are in line for a boost on July 1, with the workplace umpire to release its annual wage decision on Monday morning.

The Fair Work Commission’s annual wage review, which affects minimum and award wage earners, or about one in five workers, is expected to hand down an increase of between 3.5 per cent and 4 per cent on the pay rate of $23.23 an hour.

In submissions to the Commission, peak employee representative, the ACTU, has advocated for an increase of 5 per cent, arguing workers squeezed by simmering price pressure deserve a hike to their pay.

Meanwhile, the Australian Chamber of Commerce and Industry has pushed for an increase of 2 per cent, which will likely amount to a real wage cut, which it argues reflects the increased cost pressures facing businesses, particularly smaller firms.

Unions and business groups have been at odds over their pay claims to the annual wage review.

Mirroring its previous two interventions in the annual wage case, the Albanese government has submitted that Australia’s lowest paid workers “don’t go backwards”, in effect advocating for an increase of at least the rate of inflation, which is 3.6 per cent on most recent measures.

“We want to see strong and sustainable wages growth because we see this as part of the solution to the cost-of-living challenge, not part of the problem,” Treasurer Jim Chalmers said ahead of the decision.

“We’ve gone into bat for Australian workers, recommending the Commission ensure real wages for low-paid workers don’t go backwards.”

But with progress on lowering inflation stalling since December, economists warned that an increase in excess of 4 per cent could further complicate the Reserve Bank’s inflation fighting efforts which have already slugged borrowers with 13 rate hikes in the last 25 months.

“There is still a lingering risk of another rate hike of 25 basis points, especially if there is an upside surprise of the Fair Work decision on the minimum and award wage on Monday, and June quarter CPI,” UBS chief economist George Tharenou said.

Treasurer Jim Chalmers has pushed for an inflation-matching increase for low-paid workers.

That view was echoed by ACCI chief executive Andrew McKellar who said the Commission needed to account for still weak productivity growth alongside the stage three tax cuts and increase to the superannuation guarantee, both to commence on July 1.

“To go above that target band of inflation, we would need to see evidence that there was strong underlying productivity growth in the economy. This has not been the case at all,” Mr McKellar said.

“The commission should take account of the fact that there are significant measures to offset other cost of living pressures – that should be used as an opportunity to moderate wage inflation in the year ahead.”

However ACTU secretary Sally McManus rubbished suggestions that the Commission’s decision would feed through to broader wage increases across the economy, pointing to the easing in price pressures despite last year’s increase.

“I think it’s abundantly clear that that’s not the case; those two things are not connected,” Ms McManus said.

“We have a bargaining system and we have a system based on decisions made by the Fair Work Commission … so it’s not possible because they’re decoupled for there to be a wage price spiral.”

Some economists have warned an outsized wage increase could complicate the Reserve Bank’s efforts to tame stubborn inflationary pressures.

In last year’s determination, the commission for the first time split the minimum and award pay rates, increasing the minimum wage to $23.23 an hour, up 8.6 per cent, while increasing award rates by a more modest 5.75 per cent.

The decision, which was the largest increase in more than a decade, fuelled concerns that it would stoke inflation, and hold interest rates higher for longer.

And we have economic dummies like Lambie piping up that "increasing the minium wage will add to inflation".

(Unless she knows the currency-issuing government in a wealthy country like Oz can guarantee the essentials, making these annual wage case charades unnecessary. Socio-economic poverty is a political choice, not an economic necessity).

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