ACTU minimum wage submission could cost Australian businesses $5 billion

Submissions for the annual wage review close tomorrow (April 1)

ACTU minimum wage submission could cost Australian businesses $5 billion

The message from the australian council of trade unions (ACTU) was loud and clear throughout social media platforms shortly after the budget announcement on Tuesday – “You can’t fix the cost-of-living crisis without lifting wages”.

 Now, the ACTU has made a submission from unions to the industrial umpire calling for a minimum wage rise of 5% and says if the government is serious about addressing the cost-of-living crisis then it should back their demand. ACTU secretary, Sally McManus said, “We would welcome the government’s support. If they don’t support a serious increase in the annual wage review, then they are not serious about wage growth”.

A 5% increase would lift the minimum wage to $21.35 and cost business just over $2000 dollars per minimum wage employee, per year. With the rate applying to 2.6 million Australians, a total of 5.2 billion dollars that will be absorbed by Australian businesses.

In his pre-election budget speech, Treasurer Stephen Frydenburg announced $8.6 billion dollars will fund a temporary fuel excise, one-off payments for welfare recipients and an increased one-off rebate for low- and middle-income earners.

Shadow treasurer, Jim Chalmers called the package “a ploy for election not a plan for a better future,” and the said budgets defining features are, “pay that won’t keep up with prices and almost nothing to show for a trillion dollars in debt”.

The government has forecast wage growth will increase from 2.75% to 3.25% but unions say that wage growth is lagging behind projected inflation.

Submissions from business and stakeholders to the annual wage review close tomorrow (April 1). Any decision made by the fair work commission is expected to be implemented in July.

Recent articles & video

How to avoid getting trapped in payroll error

Atlassian asserts reproductive rights of US-staff after bombshell Roe v. Wade ruling

Australian HR Awards 2022: Excellence Awardees revealed

Queensland introduces 'nation-leading' reforms in new bill

Most Read Articles

Australian HR Awards 2022: Excellence Awardees revealed

Queensland officially bans 'claim farming'

Should HR dismiss an employee over 'inappropriate rants' sent via email?