A LEADING employer group recently urged a note of caution on the ACTU minimum wage case and said that living standards for the low paid must be maintained while ensuring that the low paid and the unemployed are not priced out of a job
A LEADING employer group recently urged a note of caution on the ACTU minimum wage case and said that living standards for the low paid must be maintained while ensuring that the low paid and the unemployed are not priced out of a job.
The Australian Industry Group (AIG) said the Australian Industrial Relations Commission (AIRC) had a difficult task with the Safety Net Review Case, and said it must decide what level of minimum wage increase will lead to optimal outcomes –for both the low paid and the economy.
“The $26.60 wage increase claimed by the ACTU is unsustainable given the slowing of key parts of the economy, weaker productivity performance and the sensitivity of the community to interest rate rises,” said Heather Ridout, AIG chief executive.
She said safety net adjustments have a disproportionate negative impact on small businesses, citing ABS statistics which show that a high proportion of employers paying award rates of pay are small businesses.
The AIG is proposing a moderate increase of $11 per week, which is in line with the Federal Government’s submission.
“There is nothing fair about the ACTU’s counter-productive claim for a $26.60 increase because it will penalise the low paid and unemployed Australians,” said Minister for Employment and Workplace Relations, Kevin Andrews.
However, ACTU Secretary Greg Combet called on Prime Minister John Howard to make good on comments to the media and guarantee that the real value of minimum wages would not be allowed to fall as a result of any changes the Government makes to the way minimum wages are set.
Prime Minister Howard told The Australian Financial Review that the Government would not introduce reforms that cut real wages. “I say we are not going to cut real wages; if I say that, that is the same as saying they are not going to be worse off,” he said.
Combet said he had written to the Prime Minister seeking confirmation that the Government will guarantee the maintenance of real minimum wages.
“The ACTU is extremely concerned that the true reason for the Government seeking to change the way minimum wages are determined is to allow wages to fall in value,” he said.
