5.2% Increase for Minimum Wage Workers

Fair Work Commission Annual Wage Review 2021-22: https://www.fwc.gov.au/documents/decisionssigned/html/2022fwcfb3501.htm.

Media release – Union Tasmania, 15 June 2022

Unions win 5.2% increase for minimum wage workers

The Fair Work Commission handed down its decision on the minimum wage this morning, awarding a 5.2% increase to workers earning the minimum wage and a 4.6% or $40 per week (whichever is higher) to those on award wages.

It takes the minimum wage from $20.33 an hour to $21.38 per hour and will mean an extra $40 a week in the pay packets of some of the country’s lowest paid workers.

Unions had argued strongly for a minimum wage rise that kept up with rising living costs and helped low paid workers who are being financially crushed by ballooning cost of living.

“The union movement stood up for workers and fought for this increase,” said Unions Tasmania Secretary, Jessica Munday. “We do this every year via the Annual Wage Review while employers argue for real wage cuts. ”

“We’ve said all along that there is no solution to the cost-of-living crisis that does not involve workers receiving decent pay rises. Workers also know that they haven’t been getting their fair share of the economic pie for years. Last year, company profits were up by 25% but workers’ wages were only growing by 2.4 per cent. That’s not fair.”

“Tasmanians across the state will look at this decision and they’ll be rightly asking for pay rises that don’t see them go backwards. This shouldn’t be a controversial ask.”

“Low wage growth is holding our economy back and employers including the Rockliff Government – who have only budgeted for an insulting 2.5% pay rise for Tasmanian state servants – need to up their offers because those sorts of low pay rises just aren’t going to cut it,” said Ms Munday.

Media release – TasCOSS, 16 June 2022

Fair Work Commission minimum wage increase

The following may be used as direct quotes from Ms Adrienne Picone, CEO, TasCOSS

• TasCOSS welcomes the Fair Work Commission’s $40 (5.2%) increase to national minimum wage and 4.6% increase to modern award minimum wages.
• Affording the essentials has become increasingly more difficult for Tasmanian families in recent times, with the cost of food, housing, health, transport, education, recreational activities and insurances all going up in the past year.
• This approach to increasing the national minimum wage recognises the particular challenges that Tasmanian workers on low incomes are facing with high inflation, with a 5.8% increase in the cost of living over the past year.
• Real wage rates have been stagnant for a decade now. They can and should be increased substantially, at least to compensate for inflation, without triggering a wage-price spiral or higher unemployment.
• Women make up more than half (55%) of the low-paid award-reliant workforce. A substantial increase in minimum wages would also be a step towards reducing the pay gap between men and women.
• We must do more to support Tasmanian on low and modest incomes with cost of living pressures. Governments of all levels have a role to play, from increasing concession payments to lifting the rate of JobSeeker and increasing Commonwealth Rent Assistance.
• At the forthcoming Employment Summit, our national peak ACOSS will be working together with unions and business to find ways to lift real wages in an orderly way while restoring full employment.

Media release – Electrical Trades Union, 15 June 2022

Apprentices screwed in wage decision

Today’s minimum wage decision fails the needs of already struggling apprentices, delivering them a real wage cut that could slow Australia’s clean energy transition.

Workers on the minimum wage will receive a well earned $40 per week or 5.2 per cent increase.

However a first year electrical apprentice who already earns less than 60 per cent of the  minimum wage will get barely half that $40 per week dollar amount, instead receiving just $20.69 per week extra or 4.6 per cent.

This represents a wage cut in real terms. In fact, from July 1, a first year apprentice electrician’s wages will decrease from 58.2% of the minimum wage to 57.9%, a concerning trend of apprentice wages falling further behind the minimum wage.

Apprentice completion rates currently sit at only 52 per cent and need to rise to give Australia the skilled energy workers needed for the clean energy transition.

“It just got harder for an apprentice electrician to complete their training,” said Michael Wright, acting ETU national secretary.

“This country needs to get serious about skilling up Australians. Thanks to this decision you earn more working two weekend penalty rate shifts on minimum wage than you do for a full week as an apprentice. No wonder our completion rates are a disgrace, young workers are having to quit their trade just to make ends meet. This is bad news for them, bad news for the industry and bad news for the nation.

“Australia needs skilled trades to aggressively rewire our homes, industry and grid. And we need real opportunities for our youth and for workers deskilling out of industries in decline. This decision is a dagger to the heart of our nation’s training effort. It callously disregards how hard apprentices and trainees are doing it.

“There is a simple fix to this problem, and that is for every low paid worker – including apprentices and trainees – to receive a $40 a week increase. This is the bare minimum needed for those workers to keep food on the table and the bare minimum to keep Australians in training.

“The ETU will continue pressing the Fair Work Commission to stop overlooking apprentice pay rates. The best thing apprentices can do to win a living wage is add their voices to this campaign by joining their union today.”