ACTU to seek rise in minimum wages as home ownership becomes a pipe dream.

Date
    March 25, 2014


Home ownership is beyond the reach of an estimated 1.5 million Australians because the growth in house prices has outstripped the rise in minimum wage more than twofold, unions say.      

The ACTU will lodge a submission to the Fair Work Commission on Friday calling for a rise in the minimum wage, now at $622.20 per week, or $32,355.44 a year.

While the minimum wage was equivalent to 14 per cent of the mean house price in 1993, it is now at less than 7.5 per cent.

ACTU secretary Dave Oliver said a 250 per cent increase in average house prices in the past 20 years had made it impossible for those earning minimum wages to buy a home.      


"For those on a low wage, home ownership is a now pipedream," he said. "Someone on a minimum wage of $622 per week has enough to cover their basic costs and that's about it. These workers tell us it's impossible to save up a deposit, let alone afford the weekly repayments."

Mr Oliver said the minimum wage had increased by 91.2 per cent from 1993 to last year, and would have needed to rise by 254.7 per cent - $1154.42 a week or $60,029.84 a year - to keep up with house prices.

He said the only way low income earners could buy a home was to work multiple jobs.      

"Many minimum wage earners have been working all their lives caring for older Australians in aged or community care, they work farms, they clean schools and hospitals or look after young children in childcare.'' he said.

Ian Pandilovki, 58, of Granville, has seen his salary increase from $28,000 a year to $45,000 over the past 14 years.

The single father, who works as a cleaner at a Sydney high school, says he ''can't even think about'' buying a house - ''it's not within reach''.      

He pays about $330 a week in rent.

Welfare Rights Centre director Maree O'Halloran said her organisation came across many women in their 50s who had been carers and were now working in sectors related to cleaning, care, hospitality and retail.

''These women are struggling to survive because both the minimum wage and the Newstart Allowance are too low,'' she said.      

In its submission to the annual wage review, the Australian Industry Group said a careful approach was needed in increases to minimum wages ''given the adverse economic impacts which would result from an excessive increase''.

A spokesman for Employment Minister Eric Abetz said the government would make a submission to the Fair Work Commission shortly. ''We'll have more to say about this then,'' he said.

Read more: http://www.smh.com.au/business/the-economy/actu-to-seek-rise-in-minimum-wages-as-home-ownership-becomes-a-pipedream-20140324-35eb1.html#ixzz2wubrorVX

aquascoot wrote on Mar 25^th, 2014 at 7:01am:


Seriously? You think anyone that loses their job should have to sell their family home?

SOB

We can blame both parties for this as it all boils down to globalisation, Cheap imports that are now not so cheap, Destruction of local Industry, Foreign ownership have all played a part in it, you say raise minimum wage but how will business afford it? It will be the final nail in the  coffin for local industry & small business. And a massive increase in unemployment.
If you really want a picture of how much less you are worth, Look at the price of gold. Look back 20 years to how much gold your wages will buy and look how much it would buy you now, In my case personally its a 1/3 of what I use to get and I've been at the same Job for 26 years.

BlOoDy RiPpEr wrote on Mar 25^th, 2014 at 7:20am:



Business always complains that outfits will close if the minimum wage is lifted.

Guess what?

It very rarely happens.

"For those on a low wage, home ownership is a now pipedream," he said. "Someone on a minimum wage of $622 per week has enough to cover their basic costs and that's about it. These workers tell us it's impossible to save up a deposit, let alone afford the weekly repayments."      

Quote:


Hasn't this more or less always been the situation for those on the minimum wage though?

Sir Spot of Borg wrote on Mar 25^th, 2014 at 7:08am:


No, I think they should get a new job if they need money.

Cancel the Citizenship of anyone not born in Australia and ban foreign ownership of Australian Homes and the prices would be affordable again even for the lowest paid workers.