The decision by the Australian Fair Pay Com
mission not to increase the minimum wage
has been met with mixed reactions over the
past week and appears to have been seen by
some as a necessary evil to protect jobs.
The decision to maintain the standard Fed
eral Minimum Wage at $14.31 per hour
($543.78 per week) is understandable, given
the current economic circumstances, said
Australian Industry Group Chief Executive
Heather Ridout. Other employer groups
agreed, saying that the commission had
recognised that the best protection for a low-
income worker is not necessarily a pay rise
but a job. Increasing the minimum wage would
have been at the expense of the job prospects
of the low-paid, they argued.
However unions say that this decision has placed
an onus on employers to do more to prevent job
losses of 1.3 million low paid workers.
ACTU president Sharan Burrow described
the decision as being based on “dubious
economic grounds”.
“Low-paid workers are being made to sac
rifice a pay rise over the next 12 months and
will struggle to meet their costs of living as a
result,” said Burrow. “Employers have a great
responsibility to do their part. They can start
by cutting excessive executive salaries and
stopping the offshoring of local jobs.”