Employer group calls on FWC to take cautious wage hike approach in wake of Trump's tariffs
National employer organisation Ai Group has slammed unions' 4.5% wage hike proposal as "reckless" as it called on the Fair Work Commission (FWC) to take a cautious approach in the Annual Wage Review 2025.
"The ACTU's claim for a 4.5% increase in minimum and award wages is reckless," said Innes Willox, chief executive of the Ai Group, in a statement.
"It will exceed business capacity to pay, risking disemployment in a private sector labour market which is already showing signs of weakness."
The Australian Council of Trade Unions (ACTU) previously pushed for a 4.5% wage boost, citing the need to give the lowest-paid workers a "decent real wage increase."
"A 4.5% rise for 2.6 million award-reliant workers is what they need to get ahead of inflation caused by global supply problems and price gouging by the likes of supermarkets and insurance companies," ACTU Secretary Sally McManus previously said.
But Willox pointed out that the FWC has adopted an approach where real minimum and award wages should grow in line with trend productivity.
"The ACTU's 4.5% claim ignores the need for balance and pushes for an increase disconnected from our economic and productivity conditions," he said.
The Ai Group has been pushing for a minimum wage increase that doesn't go above 2.6%, saying a proposal higher than that is "completely unjustified."
In his latest statement, Willox underscored the need to lower expectations for future economic performance in the wake of the 10% tariffs from US President Donald Trump.
"The recent announcement of wide-ranging tariffs by the US government introduces a considerable degree of uncertainty to Australia's economic outlook," Willox said. "They will have complex, volatile, and differential effects on industries, inflation, employment, and more for our highly trade-exposed economy."
He then urged the FWC to take a cautious and considered approach to adopt an increase of not more than 2.6%.
"Ai Group's above-inflation recommendation of 2.6% will ensure a responsible increase in real minimum and award wages that will minimise adverse employment consequences for businesses and workers alike," he said.
