Low-paid wage lift not enough: UnionsWA

A 3.4 per cent increase to Western Australia’s minimum wage is not enough considering the rising cost of living, UnionsWA says.

The WA Industrial Relations Commission on Monday decided to lift the minimum wage by $20.60 to $627.70 per week for a full-time worker.

That’s equivalent to a 54 cents per hour increase, making the minimum hourly rate $16.52.

UnionsWA secretary Simone McGurk said the commission’s decision was disappointing.

However, the independent body was “more in touch with reality” than the state government or the Chamber of Commerce and Industry of WA (CCIWA), which sought 2.5 per cent and 1.8 per cent increases in the minimum wage, respectively.

UnionsWA and the state’s Council of Social Services sought a seven per cent rise.

“This Industrial Relations Commission decision highlights how much the Barnett government and many employers are out of touch,” Ms McGurk said.

“In the face of rising costs of living, employers asked that the lowest paid in WA get a rise of less than 30 cents an hour and the Barnett government proposed only a 40 cent improvement.”

Commerce Minister Simon O’Brien said the decision took account of the needs of both workers and small business employers, and the strength of the WA economy.

“It is important in the current economic climate that we support the viability and competitiveness of the small businesses so vital to our economy,” Mr O’Brien said.

CCIWA said the increase would heap more pressure on businesses at a time when economic conditions were patchy and costs were rising.

It would dent employers’ ability to create jobs, CCIWA claimed.

“Many of the businesses affected by this decision such as hospitality, tourism and retail are already doing it tough in the local two-speed economy,” CCIWA said.

“Wage costs are the biggest expense for small business.”

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