No joy for Australia’s low paid workers

The Fair Work Commission, the Federal body entrusted with the task of determining Australia’s minimum wage handed down its – 2012-13 decision – today. The news was not good for more than 1.5 million workers (out of some 11.6 million) who are reliant on award wages in Australia (that is, low-paid workers). These workers are typically found in the retail sector, personal care services, hospitality, cleaning services and unskilled labouring. They already earn a pittance and endure poor working conditions. The FWC gave the lowest paid workers an extra $15.80 per week (a rise of just over 2.6 per cent), which will at best maintain the current real minimum wage but denies this cohort access to the fairly robust national productivity growth that has occurred over the last two years. The decision also widens the gap between the low paid workers and other wage and salary recipients. The real story though is that today’s minimum wage outcome is another casualty of the fiscal austerity that the Federal Government has imposed on the nation which is destroying jobs and impacting disproportionately on low-paid workers. The FWC cited rising unemployment as a reason for its mean pay rise.

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