Minimum Wages push rejected
Friday March 27, 2009
The Federal Government has rejected the union's latest call for minimum wages to be increase by $21-a-week stating that such an action would result in jobs losses and place additional pressure on small businesses.
Union's made the call for such a large increase, approximated to cost around $1.7 billion, stating that it would stimulate the economy and will protect those in low paid workers in the most vulnerable industries.
However, the Federal Government says that this move is more likely to put these workers and their jobs in jeopardy with smaller businesses choosing to downsize instead of paying more in wages across the board.
The Federal Government further stated that the minimum wages increase would be better used as a form of protection to the lower paid workers as opposed to a macroeconomic stimulus with support being voiced for a an increase in the low-income safety net.
The ACTU has requested that minimum ages be increased from $543.78 a week to $564.78 a week, a rise of 3.86 per cent.
While the Federal Government conceded that the rise in minimum wages would help some workers, they insist that on the whole it "may result in a reduction in demand for the low-paid and could put upward pressure on consumer prices."
The Australian Industry Group says that it supports the wages increase, but by only $8 a week while also asking the Federal Government to add to the low-income tax offset, increasing from $1200 to $1500, while also raising the tax threshold from $34,000 to $37,000.
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