Minimum wage to rise by $20.60pw

Unions and the Greens have lambasted the state government for being “out of touch” with low-paid workers after the industrial umpire awarded a 3.4 per cent increase to Western Australia’s minimum wage.

The WA Industrial Relations Commission unanimously agreed to increase the minimum wage by $20.60 per week for full time workers.

Unions had been asking for an increase of 7 per cent, while the state government lobbied for a rise of 2.5 per cent.

The Chamber of Commerce and Industry of WA recommended a lower increase of 1.8 per cent.

CCI chief executive James Pearson said today’s decision will add further pressure on business and the ability of employers to create jobs.

"The decision only widens the gap between the State and Federal minimum wage – now at $21.20 more a week," he said.

"Employers recognise the need to make sure that workers on the minimum wage are fairly paid, but it needs to be affordable.

"The worst possible outcome is that rising wage costs push businesses to breaking point, which could see a cutting back on hours, or a reduction in staff numbers."    

Unions WA secretary Simone McGurk said today’s decision highlighted how much the government and many employers were out of touch.

“In the face of rising costs of living, employers asked that the lowest paid in WA get a rise of less than thirty cents an hour and the Barnett Government proposed only a forty cent improvement,” Ms McGurk said.

“The decision by the Commission is disappointing for working people, but at least this independent body is more in touch with reality than the Barnett Government and the Chamber of Commerce.

“More working poor people now have to meet rising costs for essentials such as power and housing, largely because the Barnett Government is increasing electricity charges and failing to manage the resources boom.”

Greens spokesperson for industrial relations, Alison Xamon expressed concern the pressures on low paid workers caused by rising costs of living were not being recognised.

"We have witnessed real and unprecedented increases in costs of living, public transport up 6 per cent, food 7 per cent, water 17 per cent, gas 31 per cent and electricity up a whopping 36 per cent,” Ms Xamon said.

“These are not discretionary items, these are basics that people need to live on and yet those people who are working in those areas that are the most poorly paid will now continue to find themselves sliding backwards financially in real terms.

“The mining boom has certainly benefited some, but there are many for whom the increased costs of living associated with a boom state has been devastating.

“Today’s decision does little to alleviate this burden.  And in future the State Government needs to recognise that when it intervenes within the state wage case that simply calling for a CPI increase is in no way good enough. 

“It is the policies of this State Government which has largely driven up costs and the Government has a responsibility to ensure that it is supporting our most vulnerable and disadvantaged workers.”