The ACTU's call for a $27 per week increase to the minimum wage will deliver a $3.1 billion per year economic stimulus.
In contrast, calls by employer groups for as little as $5.70 per week increase amounts to a real wage cut for Australia's lowest paid workers when taking into account inflation.
The minimum wage claims have been made as part of the Fair Work Commission's Annual Wage Review currently underway, which is the only pay rise for 1.86 million Australian workers.
In a new submission responding to employer claims, the ACTU argues that increasing the minimum wage will help boost consumer confidence and economic demand.
New figures in the ACTU's reply submission show:
- A $27 per week increase in wages to the 18.8% of the workforce on minimum wages will deliver a $3.1 billion economic stimulus
- The RBA kept interest rates steady in March at 2.25% and indicated that consumer confidence is needed to boost jobs and economic growth, which a wage increase will deliver
- Retail trade grew to 8.7% annualised in February 2015 showing employers can afford to increase minimum wages
- Unemployment fell to 6.1% in March showing employer claims that the labour market is not improving are false
Australian Unions urge the Fair Work Commission to consider the economic stimulus impact the ACTU's minimum wage claim will deliver.
A $27 per week increase is economically responsible, appropriate and necessary to prevent a growing underclass of working poor.
The following quotes are attributable to ACTU Secretary Dave Oliver:
"A $27 per week pay rise for the 1.86 million Australian workers on minimum wages will provide a $3.1 billion economic stimulus.
"A $27 per week pay rise for our lowest paid workers is essential if Australia is to avoid creating an underclass of working poor.
"Labour productivity is high, profits are up, CEO salaries are certainly going up – yet the share of the pie for workers is going down.
"There are already signs that Australia is developing a working poor with financial stress, deprivation and poverty on the rise among low paid workers.
"This is a pay rise for cleaners, people who work in shops and restaurants – they are the lowest paid workers in this country and it's them not company CEOs who need a pay rise.
"These workers also deserve to retire with dignity and increasing their super as well as the minimum wage will help boost their retirement savings.
"Research shows boosting the minimum wage is good for workers and does not have a negative impact on employment."
Media contact: Eleni Hale, 0426 717 833 or Kara Douglas, 0418 793 885