The ACTU has revised its minimum wage demand upwards to 5.5 percent after the Reserve Bank of Australia raised its inflation forecasts.
Unions have revised their annual pay review claim upwards from five per cent to 5.5 per cent after the Reserve Bank of Australia raised its inflation forecast.
The ACTU says this will ensure that the quarter of the workforce that relies on wage increases under review by the Fair Work Commission is not pushed back amid an accelerating cost-of-living crisis.
The ACTU’s initial claim of five percent was made on March 31 and just after the federal budget was passed, which forecast inflation to rise to 4.25 percent by the middle of this year.
Since then, inflation has already jumped to 5.1 per cent and the RBA is now forecasting 5.5 per cent by the middle of this year, before heading to six per cent by the end of 2022, almost double what it expected ago. only a few months.
“A 5.5 percent increase is what is needed now just to ensure people stay afloat, anything but has them drowning in bills,” ACTU Secretary Sally McManus said.
This increase would raise the hourly rate at the adult minimum wage from $20.33 to $21.45, the weekly rate from $772.60 to $815.09, and the annual rate from $40,175.20 to $42,384.84.
“Scott Morrison must act to support minimum raises and pay wages to protect one in four Australian workers from rising cost of living pressures,” said Ms McManus.
“Scott Morrison’s inaction to support workers is a danger to the economy.”
He said every dollar workers lose in real terms is a dollar not spent on local businesses, adding that people have already cut back on discretionary spending.
“They will have no choice but to cut it out completely, since for so many workers — cleaners, elderly caregivers and retail workers — there is nothing left after rent, groceries and gasoline,” he said.