Minimum Wage Increase Delayed

Published on March 19, 2010 by Technology Slice

Minimum Wage Increase Delayed – A leading employer group wants any increase in the minimum wage delayed for six months until the start of 2011.

The ACTU wants the minimum wage to rise by $27 a week but employers say that level is too high for the nation’s cleaners, shop assistants and hospitality workers.

Instead the Australian Industry Group, which represents 60,000 businesses in sectors ranging from manufacturing to call centres, wants a $12 weekly increase in the minimum wage.

It also wants the scheduled start date for a possible rise to be delayed by six months to cater for businesses adjusting to new national modern awards.

The new industrial umpire Fair Work Australia’s decision on the minimum wage is due to come into effect in July, but this also coincides with the implementation of modern awards.

Firms adjusting to both circumstances would start paying the new minimum wage from January 1, 2011, instead of July 2010, under the AI Group’s submission to Fair Work Australia.

The group’s chief executive Heather Ridout said that while economic conditions had improved since the last minimum wage decision in July 2009, conditions were still patchy.

“Being too ambitious would risk the jobs of the very people that the wage review is intended to help,” she said.

 

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