Labor, coalition back minimum wage rise

The federal government has welcomed a $26 a week pay rise for Australia's 1.4
million minimum wage earners, but employer groups are concerned the decision could
lead to job losses.
Fair Work Australia's decision means cleaners, retail and hospitality workers will
enjoy the pay increase from July 1 to make up for last year's wage freeze.
Employer groups are incensed the pay rise is only marginally below the ACTU's push
for a $27 a week increase and well above their calls for any rise to be capped at
$12.50.
But the industrial tribunal president, Justice Geoffrey Giudice, accepted the union
movement's argument that improving economic conditions justified a decent pay
increase.
"The forecasts for 2010/11 give strong grounds to conclude that such an increase
could be awarded without threatening business viability, employment growth or adding
to inflation," he said.
The minimum wage panel's decision will see the hourly minimum pay climb to $15 a
hour for the first time as weekly pay rises to $570.
The real wages of low-paid workers will increase by 1.2 per cent when last year's
wage freeze is accounted for.
Federal Workplace Relations Minister Julia Gillard said the decision would ease the
pressure on family budgets, and was in line with the government's submission for a
"considered increase above inflation".
Her opposition counterpart, Eric Abetz, also welcomed the pay rise, albeit cautiously.
"We note that the increase is at the higher end of expectations and trust that this
won't have a negative effect on jobs," Senator Abetz said.
But the Australian Retailers Association said employers would struggle to pass on a
hefty minimum pay increase and adjust to new national awards.
"This is an unrealistic and unreasonable increase on wage bills for award-reliant
industries and it will cost jobs at a time when retailers are cutting staff hours to
try and keep their doors open during soft trading conditions," the association's
executive director Russell Zimmerman said.
The Australian Chamber of Commerce and Industry, which represents 350,000
businesses, said the decision would potentially damage the economy.
But ACTU secretary Jeff Lawrence said Fair Work Australia had made the right
decision to compensate workers, who missed out as the Howard government's old Fair
Pay Commission denied them a pay rise in 2009.
"It will deliver wage justice to minimum wage workers," he told reporters in Canberra.
"This is one of the final nails in the coffin of Work Choices."
The Australian Council of Social Service (ACOSS) said the increase would help the
low-paid keep up with rising living costs.
The low-paid had seen their real wages fall by six per cent, compared with average
wages, during the past year, ACOSS chief executive Clare Martin said.