WAIRC delivers 2.5% min wage rise

The Chamber of Commerce and Industry of WA said today it was disappointed the Western Australian Industrial Relations Commission had agreed to lift the state’s minimum wage by 2.5 per cent.

The decision represents an $18 per week increase to the WA minimum wage to $726.90 per week.

The news comes after the Fair Work Commission delivered a 3.5 per cent increase to the national minimum wage as part of its annual review earlier this month.

CCI chief executive Chris Rodwell said the chamber had argued for a 1.2 per cent increase for workers employed by small businesses.

“Today’s increase means the cumulative increase to state minimum wages since 2012 has been 18.2 per cent – more than double CPI (7.3 per cent),” he said.

“This is on top of WA’s average ordinary time weekly earnings already being the highest of all states, exceeding the national average by 11 per cent and that of the next highest state, New South Wales, by 10 per cent.

“CCI supports responsible and sustainable wage growth through the state minimum wage and award minimum wages but it is important to recognise that more than half of small businesses have an annual turnover of less than $200,000.”

WAIRC said about 27,000 employers and 300,000 employees were likely to be directly or indirectly affected by rises in the minimum wage and minimum award wages.

“Western Australia is likely to have reached the bottom of the economic cycle of the last few years which has seen a reversal of the fortunes that were experienced by the state during the resources and infrastructure investment boom,” WAIRC said.

“The Western Australian economy is in the process of improving from that trough and there are signs for growth in the future.

“There is a need to ensure that employees’ employment and their hours of work are not jeopardised by an increase that may be beyond the capacity of employers as a whole to bear.

”We recognise the need for caution and for a moderate response in these circumstances.”