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Five Myths About Minimum Wages


18 December 2003

There is plenty of misinformation about minimum wages spread by the Federal Government and employers. Read the facts:

The Howard Government Supports Low Paid Workers

Since 1996 the Howard Government has opposed every increase in minimum wages sought by the ACTU and unions, instead offering paltry amounts of between $8 and $12 per week. If the Howard Government had its way workers on minimum wages would be $35 a week or $1820 a year worse off than they are now.

An Increase In Minimum Wages Costs Jobs

Every year government ministers and employer representatives publicly chant the mantra that an increase in minimum wages would cost jobs. Yet, away from the media spotlight, buried in its own submissions, the Government's economic modelling confirms that a decent increase in minimum wages would have no impact on employment.

An Increase In Minimum Wages Is Bad For The Economy

'The country can't afford it' is another myth trotted out by the Government and employers every year. Yet the economy has grown on average by 4 per cent per year for 10 years and 1.8 million jobs have been created. Even Bob Herbert, the CEO of employer group AIG, admits past minimum wages increases have had a minimal impact on the economy.

You Can Easily Live On Minimum Wages

Not so says Glen, a production worker from Melbourne who struggles to support his family on his $377 a week wage. Rent, groceries, power, gas, phone, public transport, car repayments and school expenses cost Glen $506 a week. Glen can't afford to take his wife and two daughters to the movies or to McDonalds. A broken washing machine can spark a financial crisis for his family.

Employers Do The Right Thing By Award Workers

Company profits have grown on average by 13.5 per cent every year for the last decade. CEO salaries have grown by 7.3 per cent. Yet, last year some employer groups argued for a zero increase in minimum wages. Effectively they were arguing for a pay cut. Last year Doreen, a nurse aid, explained in the ACTU and union case how she couldn't afford to fix her TV for 18 months after it broke down. One employer group responded by saying a TV was an 'entertainment device' and not a necessity!

Send a letter to John Howard telling him why he should support the claim by unions and the ACTU for a $26.60 increase in minimum wages.



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