LABOR’S SUBMISSION ON THE MINIMUM WAGE

Labor’s submission to the annual minimum wage review proposes a real increase to the minimum wage that recognises flat-lining wages, cost of living pressures, record levels of household debt, and growing pay inequality.

 

The Australian minimum wage is no longer a living wage. The gap between the minimum wage and the average wage has increased.

 

It is remarkable that if cleaners had enjoyed the same wage gains as financial dealers over the past 40 years, they would be earning an extra $16,000 a year.

 

We note that the Statistical Report published by the Commission refers to expenditure for households based on 2015-2016 costs.  Since then, the cost of living has risen significantly.  Over the last year:

 

Electricity prices have risen by 12.4 per cent

Health prices have risen by 4 per cent

Education costs have risen by 3.2 per cent

Residential house prices have risen by more than 8 per cent.

 

We have also asked the panel to take into account the Abbott-Turnbull Government policies which would make cost of living pressures worse such as:

Support for cuts to penalty rates, the financial effect of which will be even higher in the coming years

Changes to child care subsidies that will leave around 279,000 families worse off, including thousands of families on low incomes.

Rising out of pocket health care costs and increased taxes for people on low incomes through the proposed increase to the Medicare Levy.

 

Labor’s submission takes into consideration the capacity of industry to pay, but there is a pressing need to restore the link between hard work and fair reward and rebuild the idea that a fairly paid workforce is a more productive workforce in a more profitable business.

The evidence does not support the notion that responsible increases to the minimum wage result in job losses.

 

With wages growth barely above inflation, real wages continue to stagnate, and over the past two decades labour productivity has outstripped growth in real wages.

 

A strong minimum wage not only supports the lowest paid, it is the foundation for the determination of award wages which in turn supports middle class families and stimulates economic growth.

Many Australians feel the economy is not working for them. Jobs are less secure and wages are less likely to be able to keep up with the cost of paying the bills. 

Labor believes in a fair day’s pay for a fair day’s work and a decent national minimum wage is fundamental to achieving that goal.