In its submission on a proposed increase in the minimum wage, the federal government urged the Fair Work Commission to ensure that low-paid workers’ wages do not fall.
On Friday afternoon, the government submitted its response to the commission, which is considering whether the minimum wage should be raised above the existing amount of $20.33 per hour.
Following the greatest inflation levels in two decades, Employment Minister Tony Burke stated that the government was eager to fight for higher salaries for workers.
‘Keeping wages low is no longer a policy of the Australian government; we want to ensure that wages can move, and the first step toward that was done today,’ Mr Burke said in Sydney.
‘We have made clear to the Fair Work Commission in its annual age review that the position of the government is that we do not want low paid workers to go backwards.’
While the submission does not specify how much the minimum wage should rise, the government argues that salaries should not fall as the consumer price index rose to 5.1%.
The submission from the government said: ‘In considering its decision on wages for this year, the government recommends the Fair Work Commission ensures that the real wages of Australia’s low-paid workers do not go backwards.’
During the election campaign, Prime Minister Anthony Albanese stated that he would ‘certainly’ support a 5.1% increase in the minimum wage.
Mr Burke stated that the suggestion was not restricted to individuals earning the minimum wage, but also to low-paid workers.
Businesses claim they can’t afford a 5.5 percent salary raise while dealing with pandemic lockdowns and rising supply costs.
There are also concerns that if wages rise too quickly, the expenses would be passed on to consumers, resulting in a wage-price spiral that will fuel inflation even higher.
A judgment is expected in mid-June, with implementation beginning on July 1.