Morrison government criticised after cautioning against major increase to minimum wage
The Morrison government has cautioned against a major increase in Australia’s minimum wage, citing concerns about job creation.
In a submission to the Fair Work Commission’s annual review, the government notes a continuing uncertain global and domestic economic outlook.
“Higher labour costs during this challenging period could present a major constraint to small business recovery and may dampen employment in the sector,” the submission says.
It urges a “cautious” approach that takes into account the importance of job creation and business viability through the economic recovery post-coronavirus.
“The risk of domestic outbreaks and ongoing disruptions to other major economies mean the economic environment remains uncertain,” the government says.
“Although the vaccine rollout is underway, COVID-19 outbreaks that would necessitate further containment measures remain a significant risk.”
The Australian Council of Trade Unions, which is pushing for a $26-a-week increase, attacked the government’s submission.
ACTU assistant secretary Scott Connolly said company profits were soaring but the coalition wanted wages to go backwards in real terms.
“Make no mistake, while the government didn’t have the guts to say it explicitly, it has today given the green light to the Fair Work Commission to freeze the minimum wage, relied on by one in five workers,” he said on Tuesday.
Mr Connolly said the federal government’s hypocrisy was breathtaking.
“They say it’s fine to get rid of JobKeeper because the economy is recovering, but workers shouldn’t have a pay rise because the economy is faltering,” he said.
“They can’t have it both ways.”
The Australian Council of Trade Unions, which is pushing for a $26-a-week increase, attacked the government’s submission.
ACTU assistant secretary Scott Connolly said company profits were soaring but the coalition wanted wages to go backwards in real terms.
“Make no mistake, while the government didn’t have the guts to say it explicitly, it has today given the green light to the Fair Work Commission to freeze the minimum wage, relied on by one in five workers,” he said on Tuesday.
Mr Connolly said the federal government’s hypocrisy was breathtaking.
“They say it’s fine to get rid of JobKeeper because the economy is recovering, but workers shouldn’t have a pay rise because the economy is faltering,” he said.
“They can’t have it both ways.”
SBS
