WA Chamber of Commerce wants minimum wage freeze to save jobs
By Rebecca Carmody
ABC News 18 May 2015

Western Australia's peak business group has argued for a wage freeze for workers on the minimum wage, warning any pay rise will put jobs at risk.

The move has outraged unions, who say low paid workers will be deeply insulted and appalled.

Every year the WA Industrial Relations Commission reviews the minimum wage for adult workers in what is known as the state wage case.

The current minimum wage is $666 per week, but the case will determine the new wage to take effect on July 1.

The decision is expected to affect about 100,000 workers.

For the first time since the global financial crisis in 2009, the Chamber of Commerce and Industry (CCI) has argued workers should not get an extra cent.   >:(

"These are very unusual circumstances where we have the smallest employers in Western Australia required to pay a minimum wage which is $25 higher than the national minimum wage," CCI chief executive Deidre Willmott said.

She said businesses were already hurting due to slowing economic conditions and warned a wage increase could be a job killer.

"It may even place some jobs at risk where those businesses are making small returns and they have to think about their ability to keep employing the same number of people," Ms Willmott said.


Unions described the CCI's submission as mean-spirited and insulting to low paid workers.

"I think they'll be clearly outraged by it. We know the low paid workers - they are working hard, they are struggling often to make ends meet," Unions WA secretary Meredith Hammat said.

"This is really an insult to those workers and doesn't reflect a fair outcome in any way.   

    It requires 70 per cent of the minimum wage to pay medium rent prices in Western Australia alone, let alone the other costs that they incur.
    WACOSS chief executive Irina Cattalini

"I think they'll be deeply shocked and I think it is outrageous that employers are not prepared to support any increase at all in the minimum wage in Western Australia."

In its submission, Unions WA argued for a 3.9 per cent or $30 a week pay rise, which would take the minimum wage to $696 a week.

The WA Government believes a 2 per cent increase - which amounts to an extra $13.30 a week - is fair.   

That would take the state's minimum wage to $679.20 a week.

The Government said wage restraint was needed in difficult economic times and it was appropriate to adjust the minimum wage in line with Perth's Consumer Price Index.

Unions have accused the Government of hypocrisy.

"The State Government has clearly increased essential costs of living like water, like electricity in the budget by more than 4.5 per cent, so it really is a hypocritical position for this State Government to take," Ms Hammat said.   :(

The Western Australian Council of Social Services (WACOSS) said an increase was needed in light of recent hikes in household fees and charges.   ;)

It is arguing for a $30 a week increase in its submission to the Industrial Relations Commission.

WACOSS chief executive Irina Cattalini said a freeze would not be acceptable. 

"It requires 70 per cent of the minimum wage to pay medium rent prices in Western Australia alone, let alone the other costs that they incur," she said.

Charity Anglicare said it was disappointed by the Chamber of Commerce and Industry's recommendation.

"Quite appropriately the small business community has got some benefits through the recent federal budget through the small business package," Anglicare chief executive Ian Carter said.

"That's great, but let's not cut back the real wages of minimum wage earners at the same time as we're doing that."

Nothing much new about this. As soon as some employer burns their toast they want to freeze pay rates and increase CEO and upper management wages by 5 figure amounts.

Quote:

A Wage Freeze Would Not Be Acceptable

I agree, the labour market needs more freedom.  Ban unncompetitive behaviour such as wage freezes, labour cartels and collective bargaining.  :D

Well said Dnarever, yes the low income workers do need a fair pay rise.   :)

Pay yourself what you want crook.
Borrow it all from asia.
Then when we turn into athens, the asian can repossess your house and you can scavenge in a dumpster.

Marvellous forward planning  ;) ;)

Stick to level crossings in future

I think we will let the trade unions, do the negotiating for peoples wage rises.   :)

When are you all going to get it into your heads that no matter who puts what view, it is a government paid-for and partially controlled body that makes the final decision.

All this arguing about Unions this and managers that and Tony will stomp on those dastardly workers to suit Boss Hi-Pants etc - means nothing.

A government body will make the final decision and it is always a balance between the representations of all sides.

Tony and Joe are as much 'socialist' as the Labor party, who are no more autocratic than the LNP in reality.

NEITHER would dare step too far outside the boundaries for fear of the righteous wrath of the people.

wrote on May 20^th, 2015 at 9:25am:

I think we will let the trade unions, do the negotiating for peoples wage rises.   :)

Wage rises must equal reduction in productivity (unless they are linked to better work practices)
Therefore, it is an UNDENIABLE FACT that wage rises, for the sake of it, must increase unemployment.
(and not everyone can be employed as a union rep)

$27 pay rise and 10% super for minimum wage workers
27 March 2015
ACTU



The ACTU is calling for a $27 increase in the minimum wage to $667.90 per week or $17.58 per hour.   :-?

The ACTU’s submission to the Fair Work Commission’s Annual Wage Review shows minimum wages are at a record low of 43.4% of average weekly full time earnings and that inequality in Australia will grow even further without a $27 pay rise for the lowest paid workers.

Australia had the biggest drop in the minimum wage as a percentage of the average wage of any OECD country between 2003 and 2013.

If this trend continues, Australia’s minimum wage will be on par with the United States by 2037 and our society will have an entrenched underclass of working poor.   :(

In addition to a $27 per week increase to the minimum wage, the ACTU is also asking for compulsory superannuation to be increased by 0.5 per cent to 10 per cent for minimum award wage workers.   :)

This is to compensate Australia’s lowest paid workers for the cut to their retirement savings caused by the Abbott Government’s decision to freeze the 0.5 per cent increase to compulsory super that was due to come into effect on July 1 under the Superannuation Guarantee.

Australian Unions urge the Fair Work Commission to award the ACTU’s claim in order to protect the living standards and retirement savings of almost two million Australian workers.

Key facts:

    1.86 million Australians (18.8% of the workforce) are paid the national minimum wage or an award minimum wage
    The ACTU is seeking a $27 per week increase to the minimum wage from $640.90 per week to $667.90 (from $16.87 to $17.58 per hour)
    The $27 per week increase also applies to award minimum wages up to the C10 tradesperson rate and a 3.6% increase for award rates above the C10 rate (these are classifications for workers on award minimum wages)
    The Abbott Government’s decision to delay the 0.5 super increase until 2021 means a 20-year-old minimum wage worker will be $18,401 worse off in retirement

Quotes attributable to ACTU Secretary Dave Oliver:

“A $27 per week pay rise for our lowest paid workers is essential if Australia is to avoid creating an underclass of working poor.

“There are already signs that Australia is developing a working poor with financial stress, deprivation and poverty on the rise among low paid workers.

“The Annual Wage Review is the only chance for 1.86 million of Australia’s lowest paid workers to get a pay rise and it helps set the pay and pay increases of many more.

“Last year Joe Hockey raided the super accounts of Australian workers and that’s why unions are fighting to get 10 per cent compulsory super reinstated.

aquascoot wrote on May 20^th, 2015 at 9:23am:

Stick to level crossings in future

Oh snap!