A UNION proposal to give the countrys lowest-paid workers $28 extra a week would add $3.6 billion to employers wages bill, cut profits and drive down working hours, says a study.

The Australian Council of Trade Unions (ACTU) last month called for Fair Work Australia to increase the minimum wage by $28 a week, which amounts to 74 cents extra per hour.   :)    

But the Australian Chamber of Commerce and Industry said new research by the organisation showed smaller businesses had already suffered as a result of last year's $26-a-week rise in the minimum wage, reported The Australian.

Two-thirds of the 923 employers surveyed reported a fall in their profitability, while almost 40 per cent had offered less working hours to their employees.



The chamber's chief executive, Peter Anderson, said small business was "again in the gun" as the ACTU sought the $28-a-week increase.

The chamber wants any rise limited to $9.50 a week with exemptions for flood-affected areas and struggling industries.   >:(

Mr Anderson said the ACCI estimated last year's rise added $3 billion to employers' wages bill.

"Once tribunal members leave the courtroom, the decision has practical, real-world effects in small business and they are not pretty, nor just," Mr Anderson said.

"Profit is cut, money is borrowed to pay higher wages and working hours are reduced. Not all the winners are grinners."

In a fresh submission to the tribunal, the chamber said the ACTU claim, if awarded, could lead to employees engaged under professional awards receiving rises of up to $80 a week.

"This would add . . . another $3.6 billion to the annual wages bill of Australia's small and medium employers," Mr Anderson said.

Economic figures show Australia can afford a decent wage rise for our lowest paid.
Despite scare-mongering from big business, Australia’s strong economic figures confirm a $28 a week pay rise for Australia’s lowest paid workers is modest and affordable.   :)  

ACTU Secretary Jeff Lawrence said business groups’ opposition to a fair wage rise for the one in six Australian workers dependent on award minimum wages was motivated by self-interest.   :(

The ACTU has lodged an updated submission to Fair Work Australia’s annual wage review, in reply to other interested parties, including the Australian Chamber of Commerce and Industry and the Australian Industry Group.

“Business groups are this year effectively saying exactly what they said last year – that allowing the lowest paid workers to participate in economic growth will send business to the wall,” Mr Lawrence said.

“Not only did that not happen last year when Fair Work Australia lifted the minimum wage by $26 a week, but the Australian economy has continued to outperform most of the developed world. Economic growth continued around the long-term average, unemployment is on the decline, wages growth is solid but sustainable and productivity has risen.

“If this is what happens when business groups say Australia cannot afford to fairly pay our workers on the lowest incomes, then they need to change the broken record.”   :(

Mr Lawrence said independent research conducted by the Workplace Research Centre shows that employers generally don’t budget for minimum wage increases and that the $26 increase awarded in 2010 had very little impact on award-reliant businesses.

“Business groups would have Australians believe that wage increases will stall economic growth, but the evidence proves they are not only wrong but they are trying to stymie any opportunity for the nation’s lowest paid workers to share in our strong economic prosperity.   :(    

“They are effectively calling on Fair Work Australia to slash the wages of those who need an increase the most.”   >:(  

The ACTU’s wage claim is for a $28 a week increase in the National Minimum Wage and in other award minimum wages up to the benchmark tradesperson’s rate; and a 4.2% increase for other award workers.

The pay increase would lift weekly wages from $569.90 to $597.90 – a 74c/hour increase from $15 an hour. The ABS’ cost of living index jumped 4.5 per cent in 2010.

“By contrast, the big employer groups are offering a real cut in wages for the low-paid,” Mr Lawrence said.   :(

ACCI’s submission to the minimum wage review equates to a real wage cut of $9.30 a week for minimum wage earners and $12.40 for the trade rate when CPI is taken into account. AIG’s submission equates to a real wage cut of $4.81 for minimum wage earners and $7.90 for the trade rate.

“What we are seeking will help to bridge a gap that has become too wide,” Mr Lawrence said.   ;)

Yes that's right Mr Lawrence, the low income workers need a fair $28 a week pay rise.  The cake is not being divided up fairly enough.   [smiley=birthdays.gif]  

wrote on May 4^th, 2011 at 6:59pm:

Yes that's right Mr Lawrence, the low income workers need a fair $28 a week pay rise.  The cake is not being divided up fairly enough.   [smiley=birthdays.gif]

And it won't be, unless they are forced to, by legislation.

But our 'govt' has either been bought-off, or hasn't the guts.

Or both.