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The Australian Council of Trade Unions (ACTU) is advocating for a 5% boost to the minimum wage as the Fair Work Commission prepares to reassess rates for implementation on July 1.
Should the proposal be accepted, the hourly wage for full-time minimum wage workers would increase from $24.95 to $26.19, translating to an annual salary change from $49,296 to $51,761.
“It’s no secret that Australia’s lowest-paid employees are facing tough times, bearing the brunt of rising living costs as landlords hike rents and supermarkets and fuel companies escalate prices for profit,” a spokesperson noted.
“During the last inflation surge, workers were the hardest hit. We must avoid a repeat of that scenario, which is why it’s crucial for low-income earners to receive a fair wage increase,” they added.
In contrast, RBA Governor Michele Bullock emphasized the importance of maintaining low and stable inflation, stating, “Our most significant contribution to full employment, and indeed to investment and productivity, lies in achieving this economic stability.”
“The best contribution we can make to full employment and in fact to things like investment and productivity and so on, is to have low and stable inflation,” RBA Governor Michele Bullock said at the time.
The ACTU said housing costs and power prices are driving inflation, while a minimum wage increase would only make up an estimated 0.6 per cent of the national wage bill.
“Of course, employer groups will say that any wage rise will put pressure on inflation, like they do every year, and every time they have been wrong,” McManus said.
The peak body made the submission to the Fair Work Commission ahead of its annual review into minimum wage and minimum pay rates under awards.
The commission holds hearings in May and implements any changes on the first full pay period on or after July 1.
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