THE FEDERAL Government recently moved to delay the ACTU National Wage Case, arguing that the Australian Industrial Relations Commission (AIRC) would be wiser if it waited until after the May budget until hearings began
THE FEDERAL Government recently moved to delay the ACTU National Wage Case, arguing that the Australian Industrial Relations Commission (AIRC) would be wiser if it waited until after the May budget before hearings began.
Both current and future economic conditions were important in determining increases to the minimum wage, and the AIRC needed to give appropriate regard to these conditions and future economic forecasts contained in the budget, according to Minister for Employment and Workplace Relations Kevin Andrews.
“It makes sense for the AIRC to delay its hearing of the national wage case until it has all the available economic data at its disposal,” he said.
“This will allow substantive discussion of key economic indicators and the impact on jobs, including prospective jobs, for low skilled people of any contemplated wage rise.”
Hearings on union claims for a $26.60 wage increase would normally commence around January or early February 2005 with a decision issued in early May 2005. Pressure by the Government to delay hearings would stall the process for up to six months.
Minister Andrews said business could be discouraged from taking on new workers if the minimum wage was set at a level which is too high, pricing the low skilled out of the labour market.
With unemployment now at 27 year lows, the low skilled and unemployed must be given every opportunity to participate in the labour market, he said.
However the ACTU said the Government was abusing its power in delaying the case, effectively denying a pay rise for 1.6 million low paid workers.
“Unions will strenuously oppose the Government’s move to delay the minimum wage case in a hearing before the Australian Industrial Relations Commission,” said ACTU secretary Greg Combet.
The ACTU said the Government wanted to delay the minimum wage case until after 1 July 2005 when it will control both Houses of Parliament and can bring in laws that would make it almost impossible for low paid workers to get a pay rise.
“This would be an unacceptable abuse of power striking at the lowest paid most hard working Australians,”said Combet.
He dismissed Government claims that the AIRC should wait until new economic forecasts were available in light of the budget, and said that such forecasts are considered by the AIRC in the minimum wage case.
