2004 Minimum Wages Case Fact Sheet

15 December 2003

The ACTU and unions will seek a $26.60 a week increase in minimum award pay rates in the 2004 Minimum Wage Case in the Australian Industrial Relations Commission.

1.6 million employees paid under Federal and State industrial Awards, including many part-time and casuals, rely on the claim for their only pay rise each year.

The case would lift the Federal Minimum Wage from $11.80 to $12.50 per hour.

The case would increase the full time Federal Minimum Wage from $448.40 per week to $475 per week, or from $23,316 a year to $24,700 a year.

From 1996 to 2001, the weekly income of the bottom 20% of earners in Australia increased by $3 compared to $109 for the top 20%. (ABS 6523.0 Household and Income Distribution Table 1P13)

Increasing award wages is an effective tool to reverse growing income inequality. Award workers represent 21% of the workforce but receive only 13% of the national wages bill.

The ACTU's 2004 claim is calculated to add 0.1% to economy wide wage costs, 0.08% to inflation, and to have a negligible impact on employment.

For full time workers, the average annual percentage increase from the claim would be 4.5%. This compares to average annual growth of:

• 6.2% in Average Weekly Earnings (ABS August 2003)

• 6.1% in Average Weekly Ordinary Time Earnings AWOTE (ABS August 2003)

• 7.3% for CEOs (Australian Financial Review executive salaries survey Nov 2003)

Who are award dependent workers?

• 21% of all Australian employees - around 1.6 million people - work on awards

• Nearly all work in hospitality, retail or health & community services;

• 51% earn less than $15 per hour;

• 37% earn less than $14 per hour;

• 17% earn less than $13 per hour;

• 57% are part-time;

• 47% are casual;

• 40% are both part-time and casual.

ACTU and Unions Minimum Wages Claims since 1996:

Allowing for inflation, the cases have increased the Federal Minimum Wage by more than 8% in real terms since 1996.

Since 1996, the Howard Government has opposed every increase in minimum wages sought by the ACTU and unions, instead offering between $8 and $12 a week.

If the Howard Government had had its way, then workers on the Minimum Wage would be $35 a week or $1,820 a year worse off than they are now

For more background information on minimum wages visit the minimum wages section of the ACTU website

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© 2003 Health Services Union (HSU)
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