Yesterday (3 June 2010), Fair Work Australia (FWA) handed down the decision in its first Annual Wage Review under the Fair Work Act 2009.
FWA has increased the minimum wage by $26 a week, lifting the minimum weekly rate of pay to $569.90 or $15 per hour.
The union movement, in its submission to FWA, had sought an increase of $27 per week. It argued that Australia’s low paid workers had not received an increase for the past 2 years and it was time that they also benefited from the improving economy. The Australian Chamber of Commerce and other employer bodies argued that the economy could not support an increase of more than $12.50 per week.
In making this decision, FWA took into consideration that the minimum wage had not been increased for the past 2 years and expressed the view that ‘there was a strong case to increase the minimum wage to provide a fair and relevant safety net to protect the relevant living standards of award-reliant employees and assist the low paid in their needs’. Further, based on the evidence before it, FWA felt that the economic forecast for the coming year provided strong grounds that awarding the increase would not ‘threaten viability, employment growth or give rise to inflation’.
The decision to increase wages by $26 per week or 0.69 cents per hour will also apply to all modern awards with the increase effective from the first full pay period after 1 July 2010.
For further information please contact Ian Curlewis, Partner, on (08) 9288 6756, ian.curlewis@lavanlegal.com.au or Michael Jensen, Senior Associate, on (08) 9288 6944, michael.jensen@lavanlegal.com.au.
