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Labor will recommend the Fair Work Commission make an “economically sustainable” real wage increase to award rate workers.
Prime Minister Anthony Albanese will make the announcement on Wednesday as part of Labor’s election policies aimed at tackling the cost of living crisis.
Labor has been vague about how much it would like wages to increase by, and when it could happen, but says the changes will help Australians “earn more and keep more of what they earn”.
Albanese targeting low-paid workers
Labor estimates that there are around three million Australians who would benefit from an award wage increase, including cleaners, retail workers and childcare workers.
The national minimum wage is currently $24.10 per hour, which equates to $915.90 per 38-hour week or $47,626.80 a year.
Labor has supported wage increases in the last three annual wage reviews, where the Fair Work Commission considers increases to award rates.
Labor wants workers ‘to get ahead’
“This campaign we will again be advocating for workers to get a pay rise to not only help them deal with the pressures of today, but to get ahead in the future.” — Anthony Albanese.
Any wage increase tied to inflation
With inflation coming down and interest rates falling, Labor believes it has a strong case for the commission to back wage increases.
The latest Consumer Price Index, a measure of inflation, was 2.4 per cent, which is within the Reserve Bank of Australia’s target range of between 2 and 3 per cent.
The RBA made a rate cut at its February meeting that resulted in rates being reduced from 4.35 per cent to 4.1 per cent and followed 13 consecutive hikes, starting in May 2022.
However, the central bank kept the rate on hold this past Tuesday, citing global uncertainty as a reason for caution.
The prime minister is expected to provide more details later today on Labor’s push for higher wages.
