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Category: Industrial Relations / Work / Unions

Unions critical of WA Government's 'miserly' minimum wage recommendation

Monday, 23 May 2016 09:29:31 | Rebecca Carmody

Ms Hammat says the cost of living is increasing faster than inflation. (ABC News)

Unions have accused the West Australian Government of being out of touch with workers, after it recommended a pay rise of $8.50 per week for people on the minimum wage.

The WA Industrial Relations Commission is sitting for two days in Perth this week, to set the minimum wage for workers covered by the state's IR system.

It is unclear how many workers fall under the state system, but Unions WA estimated it could be as many as 200,000, including apprentices and trainees.

The current minimum wage is $679.90 per week.

Unions WA will argue for a 4.4 per cent increase, $30 per week, to take effect from July 1.

Unions WA secretary Meredith Hammat said the increase was necessary to address the widening gap between low paid workers and the rest of the WA workforce.

"People on the minimum wage are earning less and less, relative to other workers," she said.

"We know that costs of living are increasing much more than inflation and so clearly people on the minimum wage need to get a substantial increase if they're to keep their head above water.

"It is very hard to make ends meet when you're on the minimum wage - to deny those people any kind of increase is really sending them backwards."

Government wants CPI increase only

The State Government wants any increase limited to 1.25 per cent or $8.50 a week.

In its submission, the Government said its position was in line with the Treasury estimate of 1.25 per cent CPI growth in Perth over the 2015-16 financial year.

However, Treasury has forecast CPI growth of 1.75 per cent during 2016-17 - the period for which the commission's decision will apply.

Australian money Photo: Unions want a $30 a week increase to the minimum wage. (AAP: Alan Porritt)

Ms Hammat said if the Government's recommendation was followed, it would amount to a paltry increase for workers.

"The reality of that is that it would mean a miserly 22 cents an hour increase for working people," she said.

"Now this is the same Government that's increased electricity, it's increased water, it's increased TAFE fees by between 3 per cent and 4 per cent in their last budget."

State Opposition Leader Mark McGowan accused the Government of cherry picking CPI figures to keep wages down.

"To have them having their income go down relative to inflation is wrong. It's not the Australian way and I think people on the minimum wage deserve better than that."

No increase needed: CCI

In a statement, Commerce Minister Michael Mischin defended the Government's recommendation.

"My submission supports the WA Industrial Relations Commission taking a balanced approach to minimum and award wage setting which assists in meeting the needs of low paid workers while minimising the potential risks for employers and the business community in the current economic climate," the statement said.

For the second year in a row, WA's business community has argued against any increase for low paid workers.

The Chamber of Commerce and Industry (CCI) said WA's minimum wage was already inflated compared to the national minimum, which is currently $656.90.

It said a wage freeze was appropriate because small businesses in WA should not be penalised with higher labour costs.

The commission will sit for two days this week before making its ruling next month.

AustraliaPlus


 

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