Unions
Minimum wage rises 2.5 per cent
Unions have won a 2.5 per cent increase for a quarter of all workers through the Fair Work Commission’s annual minimum wages case, despite hard-line opposition from the federal government and big business.
Unions had pushed for a 3.5 per cent increase, while employer groups, including the Australian Industry Group and the Australian Chamber of Commerce and Industry, had advocated for a 1.1 per cent rise.
The pay rise will raise the annual minimum wage to $40,175.20 and the hourly rate to $20.33, and will lift the wages of 2.2 million Australians or one in four workers.
Workers in the aviation, tourism and fitness sectors will have to wait until November for the increase. Those on
the retail award will receive the increase in September.
The ACTU had argued that the increase in the minimum wage would offer similar benefits to the one-off stimulus payments made during the pandemic.
“The increase in the minimum wage and modern award minimum wages will raise household spending and demand for goods and services in the Australian economy,” the ACTU said in its submission to the annual review.
ACTU Secretary Sally McManus said the wage increase came through union action.
“The Morrison government and big business wanted pay cuts or freezes,” she said.
Sally said it was disappointing that the Commission had delayed increases for some workers, “especially those who have worked throughout the pandemic and whose employers have posted record profits.”