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Ai Group proposes modest minimum wage increase

"The Australian Industry Group's submission in this year's Annual Wage Review, which will be lodged this afternoon, argues that a modest wage increase of 1.5% is warranted. This equates to an increase of about $10.10 per week in the National Minimum Wage and about $11.75 per week at the base trade level," Australian Industry Group Chief Executive, Innes Willox, said today.

"The following factors support the view that only a modest wage increase is warranted this year:

  • Employment growth is exceedingly weak nationally;
  • Inflation has been low over an extended period;
  • Rising energy costs and other cost pressures have eroded businesses' capacity to afford wage increases;
  • Measurable productivity growth is very weak; and
  • National aggregate income remains weak and unevenly distributed.

"Rising youth unemployment and underemployment, and falling participation, suggest significant pockets of spare capacity are building up, particularly at the lower-skilled end of the labour market. In such circumstances, it is important that the Fair Work Commission adopt a cautious approach when determining the level of any minimum wage increase in this year's Annual Wage Review," Mr Willox said.  

Media Enquiries: Tony Melville – 0419 190 347