Australia’s lowest-paid workers need an extra $27 a week to avoid becoming part of an underclass of working poor, unions say.
The Australian Council of Trade Unions says the minimum wage needs to go up to $667.90 per week, or $17.58 per hour.
But business groups say a $27 increase would make it harder for businesses to hire new staff.
ACTU secretary Dave Oliver says Australia’s minimum wages are at a record low of 43.4 per cent of average weekly full-time earnings.
“A $27 per week pay rise for our lowest-paid workers is essential if Australia is to avoid creating an underclass of working poor,” Mr Oliver said today.
“There are already signs that Australia is developing a working poor with financial stress, deprivation and poverty on the rise among low paid workers.”
The Fair Work Commission’s annual wage review last year increased the minimum wage by $18.70 a week.
Australian Chamber of Commerce and Industry CEO Kate Carnell said $27 a week extra would hurt businesses and employment.
“Such a steep increase would make it harder for employers to afford low-skill workers and young people seeking entry-level positions,” she said.
Ms Carnell said the ACCI would argue for a cautious and restrained increase in the minimum wage, given softening labour market conditions.
Last year, Australia’s 1.5 million lowest-paid workers received an $18.70 a week pay rise – taking the hourly rate to $16.87, an increase of 50 cents.
