28 February 2001

Government's Low Wage Rise Denial Irresponsible

UnitingCare Wesley Adelaide refutes the claim by the Federal Government that increasing wages for the lowest paid workers is “economically irresponsible”.

“To deny low income earners a wages catch-up is mean spirited” said Mark Henley, ACM’s Senior Policy Officer. He explained this saying that the rate of inflation for the 12 months to December was 5.8%, partly due to the increase in costs associated with the introduction of the GST. He also observed that the current high cost of petrol and rising education costs are particularly affecting low income households, while housing costs have increased by 8% over the last year.

The $10 per week pay increase proposed by the federal government amounts to a 2.3% pay increase for a family earning the median household income in South Australia of $22,000 per year. (A median household income of $22,000 for SA means that a half of all households have annual incomes of this level or LESS).

The Government’s offer to low income people is less than half of the increase required for these workers to catch up with purchasing power lost over the last 12 months.

ACM calls on Governments and businesses to act responsibly and support pay increases that provide a livable income for low wage earners, particularly after 5 years of strong economic and profit growth.

 

For Further Comment
Mark Henley Senior Policy Officer	8202 5135 (w) 0404 067 011 (mob)