The Western Australian Industrial Relations Commission has raised the state’s minimum wage 2.1 per cent from next month, despite concerns it could hurt an already soft job market.
The Western Australian Industrial Relations Commission has raised the state’s minimum wage 2.1 per cent from next month, despite concerns it could hurt an already soft job market.
At $679.90 per week, a rise of $14, the wage will continue to be above the federal minimum standard of $656.90, which the Fair Work Commission recently increased 2.5 per cent.
See also: Minimum wage hike to hurt job seekers
The hike was well above the nominal freeze suggested in the Chamber of Commerce and Industry’s submission, and marginally above the state government’s request of 2 per cent, which it said was in line with Perth's inflation rate.
CCIWA chief executive Deidre Willmott welcomed the reduction in the gap between the federal and state rates, althought she said WA businesses were still at a disadvantage.
“The State minimum wage applies to small unincorporated businesses, generally in the retail and hospitality industries," she said.
"CCI had argued the state minimum wage should be brought closer in line with the national standard because of the high levels of unemployment across the state and a significant reduction in private sector wages growth.
“After today’s decision the State minimum wage is still $23 a week higher than the national wage which will not encourage affected businesses to hire new people and retain staff at a time when employees are concerned about their job security.”
In its submission, CCIWA had said a freeze would help ease the cost pressure on employers and provide greater certainty for employees.
“It will also help to provide greater opportunity and incentive to employers to increase hours of work and employment opportunities,” CCIWA said.
Wage hikes could additionally limit the ability of new workers to upskill.
“For unskilled unemployed people to remain competitive in the market, entry rates must also remain competitive,” the submission said.
“In instances where an unskilled candidate is in competition with a skilled or semi-skilled candidate for employment, if the costs are the same the employer will, every time, employ the more skilled candidate.
“Keeping minimum rates of pay low will keep potential entrants to the workforce competitive."
UnionsWA and WACOSS had both called for the wage to climb by up to 4.5 per cent.
