The Fair Work Commission announced a 1.75% increase to minimum wages, equating to a $13 per week increase in the national minimum wage. Following Stage 1 Award increases for essential service workers in July, new minimum award rates start for industries like manufacturing & construction commence 1 November 2020.
Other industries such as accommodation, food services, arts and recreation services, aviation, retail, and tourism will experience an increase from the 1st February. This decision for an increase in awards and allowances will result in a pay rise to more than 2.2 million Australians.
Unions asked for a 4% rise per week which the Australian Chamber of Commerce and Industry and Australian Industry Group actioned to freeze and delay the pay rise until 1st January. The federal government stressed the need to protect jobs and consider business viability.
The commission’s president, Justice Ian Ross said ‘the shock to the labour market meant the panel gave greater weight to the potential that minimum wages could inhibit hiring and re-employment’ and that the request for the 4% rise would create the risk of disemployment”, particularly for young workers, however on the other hand, low-income households would be at a greater risk of poverty without the pay rise.
The secretary of the Australian Council of Trade Unions, Sally McManus, said the increase was “very modest” and “it is disappointing that several awards will not see any increase until November or February” however acknowledged the decision to stagger the increase was necessary to manager inflation.
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Source: FairWork
Title: The Commission has announced a 1.75% increase to minimum wages
Read Time: 8 minutes
Source: The Guardian
Title: Australia’s minimum wage to rise by $13 a week, but increase will be staggered
Source: 10 minutes