Australia – Fair Work Commission raises minimum wage by 3.5%

Australia’s Fair Work Commission announced that it has raised the minimum wage by 3.5% to AUD 719.20 (USD 542.83), an increase of AUD 24.30 (USD 18.34) a week.

The raise will affect 20% of Australia’s workforce, or more than 2 million workers andwill come into effect in July.

The 3.5% increase is also above the 1.9% rate of inflation, meaning a real rise in wages of 1.6% for Australia’s lowest paid workers.

Despite the increase, it is still below the 7.2% raise called on by unions.

Australian Council of Trade Unions secretary Sally McManus said the increase is a “step forward to a living wage but it’s not a living wage.”

Australian Industry Group chief executive Innes Willox opposed the decision, commenting, “Australia already had the second-highest national minimum wage in the world (just behind France) and today’s decision runs the risk of further harming the competitiveness of Australian businesses.”

“Contrary to the suggestion by the commission, there remains a clear risk that these businesses will be less able to afford creating new jobs or to offering their existing employees additional hours,” Willox said.

Source:: http://www2.staffingindustry.com/row/Editorial/Daily-News/Australia-Fair-Work-Commission-raises-minimum-wage-by-3.5-46253