Wages In Focus Ahead Of Government Submission On Minimum Wage Increase

Wages will be in focus today, as the Australian Federal Government submits its recommendations to the Fair Work Commission (FWC), with the body having commenced its annual review. This review will determine the new minimum wage and award rates, which will come into effect from July 1 this year.

• ABC News notes "Unions have also argued for a wage increase that keeps pace with inflation, advocating specifically for a 7 per cent increase." "The government has not put a figure on the increase it is advocating, but Employment Minister Tony Burke said low-paid workers should not be earning less in real terms."
• But he made clear the government was not arguing for widespread pay increases along the same lines. "Our submission does not suggest that across-the-board wages should automatically increase in line with inflation, or that inflation is the only factor the Fair Work Commission should consider," he added."
• "However, business groups are concerned about the ACTU's proposed 7 per cent increase and fear it will have a negative impact on the economy."
• ABC News Adds - The ACCI's submission to the FWC on Friday will suggest that fair level is increasing the minimum and modern award wages by up to 3.5 per cent, with an additional already legislated 0.5 per cent Superannuation Guarantee increase.
• See this link for more details.