SA Unions welcome 4.75% wage increase to help workers facing economic ‘wildcard’ of Middle East conflict

• SA Unions have welcomed the Fair Work Commission’s decision to award a wage increase of 4.75 per cent to workers who rely on minimum and award wages. 
• Unions call claims that the minimum wage rise will harm business “complete bogus”.

SA Unions Secretary Dale Beasley said that the decision provides much-needed relief to around 3 million workers who rely on the Annual Wage Review as their only way to keep up with rising prices. 

Employer lobby groups have been quick to start scare-mongering that today’s increase will harm business profitability. The truth is that workers on the minimum wage account for less than 1 per cent of the national wages bill, and award-reliant workers account for around 10 per cent. This increase will not impact a large proportion of the workforce, but it will make a significant and meaningful difference to the workers it does affect.

These lower-paid workers are concentrated in accommodation and food services, retail, administration, social assistance and health care. They are predominantly women and employed on part-time or casual arrangements.    

This decision broadly keeps up with the cost of living and will help working South Australians deal with what the Fair Work Commission termed the “wild card” of conflict in the Middle East.

 SA Unions also welcome the Fair Work Commission’s decision to increase wages by 6 per cent for around 100,000 workers on the lowest award rates. This lifts the lowest rate of pay for ongoing work from $24.95 per hour to $26.44, or a $56 a week increase for a full-time worker. 

These increases will arrive in the pay packets of award-reliant workers from July 1, and will benefit all workers by lifting the national minimum wage floor that unions bargain from.

 Unions pursued a 6 per cent minimum wage increase after the Federal Budget forecast that inflation would reach 5 per cent by the middle of the year. 

While today’s Annual Wage Review decision falls short of that increase for all but the lowest-paid workers,  it will ease the worst of the pressures caused by war in the Middle East and help workers to keep their head above water if the situation drags on.

Quotes attributable to SA Unions Secretary Dale Beasley:

“Every year big business claim that low paid workers getting a pay rise will cause the sky to fall in, and it never does. It’s complete bogus. When workers get a pay rise, they spend it on food, clothing and bills. They return it to the economy, which is good for business.”

“Each of the big four banks could pay for today’s increase out of their profits single-handedly and still have profits left over to send to their shareholders. It’s ridiculous to suggest that the mega-wealthy should earn such mega-profits, while arguing against increases to minimum wage earners.”

“Workers in their unions worked hard to advocate for a wage increase and we welcome the Fair Work Commission’s decision to lift wages by 4.75 per cent for around 3 million of Australia’s lowest-paid workers.”

“The last time inflation spiked during the pandemic, it was the lowest-paid workers who suffered the most. Real wages in South Australia are still 5.7 per cent lower than they were in March 2021. With prices rising again thanks to conflict in the Middle East, this decision is an important step to make sure workers can keep up with the cost of living.”

“Relief is on the way for workers who are getting squeezed at the bowser, the checkout, and when they pay their bills. Today’s decision means that low-paid workers in retail, hospo, admin, health care and social support won’t need to cut back on essentials like food and doctors’ appointments just to stay afloat.”