Labor to push for real wage increase for 2.9m workers
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The news: The Labor party will urge the Fair Work Commission to grant an above-inflation wage increase for low-paid Australian workers in its annual wage review in its submission to the commission’s review set to be released on Wednesday.
The numbers: According to media reports citing the submission, Labor will argue that the increase should be “economically sustainable,” and that a rise in minimum and award wages should be consistent with inflation returning sustainably to the Reserve Bank’s target of 2% to 3%.
Over 2.9 million workers would be impacted by the commission’s review. The national minimum wage is $24.10 an hour, which is $915.90 for a 38 hour week. A 3% increase would see an increase of $27 per week for low-paid workers.
The context: While Labor does not state a specific amount that should be granted in the submission, the party argues that workers deserve a real, above-inflation increase. The submission reads: “Consistent with the core Labor value of a fair go, the Australian Labor Party recommends that the commission award an economically sustainable real wage increase to Australia’s award workers.”
“Labor submits that this outcome is both fair and economically responsible.”
The submission says that despite heightened global uncertainty and volatility, the Australian economy has turned a corner. Inflation data is coming in at less than one third of its peak, unemployment remains low, and interest rates have begun their descent. "Economic growth rebounded at the end of last year and the private sector is now a key contributor to growth. Importantly, real wages growth has now returned and is forecast to continue across 2024-25 and 2025-26. A soft landing in our economy looks more and more likely.”
The submission marks a departure from previous Labor party messaging on wages, as it has historically advocated that real wages for workers not go backwards, rather than pushing for an increase.
While the arguments made in the submission are not binding policy commitments should Albanese hold on to power in the upcoming election, they are likely to intensify debate between Labor and the Coalition about the cost-of-living crisis which has become a hot-button election issue.
The sources: The Australian, The Conversation
