The Fair Work Commission's 3.5% increase is good news for workers, but there is still more work to be done to restore the purchasing power of the minimum wage for the almost 3 million workers on low pay. This is especially justified in view of new evidence that raising the minimum wage has had no impact on inflation over the last 35 years, new data finds, despite arguments from business groups to the contrary.
The real wages of award workers have gone backwards over the last four years, falling short of adequately compensating low paid workers for increases in living costs.
The Greens will continue to support union proposals for wage increases for minimum and award wage workers and to help address systemic gender pay inequality.
As stated by Senator Barbara Pocock:
"Given the evidence that minimum wage rises have had no impact on inflation over the last thirty-five years, it is disingenuous for business to use this argument against workers, and gives the Fair Work Commission a stronger incentive to raise the rate."
"The FWC's increase of 3.5% will help low paid workers, but there is still further to go to make up for the reality of long term losses in real wage rates. These workers are still struggling through a cost of living crisis and continue to have to make ends meet on a low wage.
"Today's decision by the FWC is good news for women as it goes some way to addressing the wage gap in feminised care sectors, which have historically been undervalued and under-compensated.
"Low paid workers are already facing an uphill battle as wages have failed to keep up with the cost of living. We need to continue to raise the minimum wage to a liveable level and give people a chance to get ahead. The widening gap between the increasing incomes of those at the top of the labour market which have been increasing rapidly and those at the bottom creates a strong case to look after those on low pay. These are the people who keep our economy and care system in particular functioning: we all depend on them. They deserve decent pay that keeps up with their costs.
"The FWC should prioritise the needs of Australia's lowest paid workers, not the wealthy top end of town. We need to call out the real perpetrators of inflation - big corporations pursuing big profits - instead of holding back low paid workers. Profits are driving inflation not wages and this decision puts further pressure on workers who are trying to make ends meet on a low wage."
