By The Editor
The Australian Fair Pay Commission (AFPC) seems to have a potential clash with trade unions on its hands, as the issue of minimun wage increases come into focus.
However, VECCI’s Alexandra Marriott calls for the need to take a step back and survey the bigger picture before heading into battle on this not-so-simple issue:
TRADE unions are gearing up for another battle on behalf of Australia’s 1.3 million low-paid workers by campaigning for a catch-up increase to the federal minimum wage. The Australian Fair Pay Commission, in July last year, froze the minimum wage at $543.78, rejecting the unions’ claim for a $21 a week increase [The Herald Sun]
Alexandra: A significant wage increase is likely to have negative impact on the bottom line of many businesses, and more broadly, have an impact on employment growth, inflation and interest rates, leading to a wage-price spiral.
The Minimum Wage Panel of Fair Work Australia has a considerable task ahead of it – the first review of the Panel conducts comes at a time when many businesses remain concerned about just how recovered the Australian economy is.
Given the wage decision will take effect at the same time as the transitional provisions of phased modern awards, this decision is particularly significant – accordingly, we urge the panel to be prudent in its decision, and to be cognisant of the many challenges facing business at this time.
[...] As previously discussed here, the new Minimum Wage Panel commenced its annual Minimum Wage Review on 1 January this year. The task before the Panel is significant. [...]