Will this be the last wage case?

The ACTU today lodged the bid by unions for a $26.60 pay rise for 1.6 million low paid Australians.

But there are concerns it may be the last case of its type in the Australian Industrial Relations Commission.

The Federal Government is considering taking away the rights of the AIRC to determine the annual pay rise for 1.6 million people who are covered by awards.

HSU members working in Aboriginal health services, in some aged and disability care facilities are amongst those who rely on the case for a pay rise each year.

ACTU Secretary Greg Combet said today:

"We fear the Federal Government is planning to abolish the system of minimum award wages and conditions that has underpinned the job security and living standards of working Australians for 100 years.

"Abolishing or nobbling the independent role of the Australian Industrial Relations Commission in setting minimum award wages would be a disaster for the living standards of low-paid workers and their families.

"We don't want a US style system in Australia where large numbers of working people are forced to live in poverty.

"Minimum wages in the US are just $5.15 an hour and have been increased only once (by 40¢) since 1996.

"If that's the path business and the government want to take Australia down then workers, families will be the losers.

"Without a national wage case conducted by an independent umpire, working families would see prices rise for food; petrol, clothing, rent and other basic necessities while their wages remain frozen. This is a recipe for failing living standards and increasing the number of working poor.

"The uncertain future of the award system highlights the importance of this year's minimum wage case in which the ACTU is seeking to raise Australia's legal adult minimum wage from $12.30 to $13.00 an hour.

"For full time adult workers this will mean a rise from the current $467.40 a week to $494 a week, or from $24,370 a year to $25,757 a year.

The ACTU submission argues that this pay rise is moderate and economically responsible with official data showing the economy in good shape:

• Australia is in the midst of 14 years of economic growth, the longest expansion on record, with future growth forecast at 3%, unemployment at a 28-year low, inflation in the low 2-3% range, and company profits at record levels;

• Recent minimum wage rises have had no negative impact on jobs and productivity growth is averaging 2.4% a year for the past ten years;

• Economic output of the three most award-reliant industries of Retail, Accommodation, cafes and restaurants and Health and community services continues to outperform other industries and is well above real federal minimum wages growth;

• Hard working low paid Australians deserve a share in national economic prosperity and this year's minimum wage case could be their last chance for a pay rise in a long while.

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© 2003 Health Services Union (HSU)
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