Why raising the minimum wage is a safety net for all
Go Back- 25th May 2017
UNIONS PUSHED FOR $45 PER WEEK INCREASE
Unions are at the forefront of lifting the wages of all workers from those on the Minimum Wage to those on Industry Awards. The SDA is responsible for a range of Awards which cover employees in the retail, fast food, warehousing, pharmacies and Hair and Beauty industries.
Each year, the Fair Work Commission hands down the Annual Wage Review, which determines any increase to the Minimum Wage and the minimum rates in each industry Award. Any increase usually applies from 1 July every year.
This year the SDA supported the claim by the Australian Council of Trade Unions (ACTU) to increase the Minimum Wage by $45 a week. At the time of writing, the Fair Work Commission’s decision on the 2017 increase had not been made.
Once the amount of the increase has been decided, it will flow on to the Retail, Fast Food, Storage and Services (Warehousing), Pharmacy and Hair & Beauty Awards which means these workers will receive a pay rise on 1 July thanks to the work of unions.
It is critically important for the minimum wage to increase each year because it’s a direct increase to workers covered by Awards but it also means the base from which we negotiate wages in SDA Agreements also increases.
That’s why the SDA and other unions always put forward a strong case to raise the National Minimum Wage and Award rates– because when wages are improved in Modern Awards, the wages floor in Workplace Agreements is also improved.
EMPLOYER GROUPS ARGUED FOR LOWER THAN INFLATION PAY INCREASES
While the SDA argued for the $45 per week increase, in stark contrast, employer lobby groups argued for minimal increases and most were even lower than the rate of inflation (currently 2.1%).
- Australian Retail Association: 1.2% = $8.10 per week.
- Australian Chamber of Commerce and Industry: 1.2% - $8.07 per week.
- Australian Industry Group: 1.5% = $10.10 per week.
RECORD LOW WAGES GROWTH
Wages growth in Australia is at record lows. From March 2016 to March 2017, wages only rose by 1.9% (all sectors) and by an even lower rate of 1.7% in the private sector where SDA members work. This is the slowest growth ever recorded in Australian history.
Whilst wages growth has slowed, productivity growth continues. Real labour costs are now the lowest they have ever been.
Unit labour costs have declined by about 3.5% relative to Australia’s trading partners.
While productivity and profits continue to increase, wages are not lifting at the same rate.
This means workers are working harder than ever before but are not receiving their fair share of the pie.
Wage growth is crucial for workers to keep up with the cost of living.
The cost of living continues to go up – from the price of groceries to electricity bills to university fees and health insurance.
If wages fall behind, workers fall behind and it becomes harder and harder for ordinary Australians to get by.
Australia is at real risk of becoming more like America, where lower skilled workers are paid extremely low wages forcing them to work several jobs just to get by.
A fair and decent wage is core business for the SDA. We argue for decent wages for workers because a living wage is needed to provide for themselves, their family and their future.
A strong minimum wage can stop workers from falling further behind – it provides them with a safety net and prevents them having to rely on welfare.
WAGE GROWTH GOOD FOR BUSINESSES & ECONOMY
Regular pay rises also help to drive the economy. If workers’ wages fall, then their capacity to spend in local shops, businesses, restaurants and cafes is reduced.
This will have a negative impact on local businesses and the economy as people have less to spend. The end result is a weaker economy and poorer communities.
There can be no boost to the economy or boost to businesses or more jobs without wages growth to drive it.
That’s why the SDA continues to fight for fair pay for SDA members.
SDA WA - The Union for Workers in Retail. Fastfood. Warehousing
