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ANNUAL WAGE REVIEW INCREASE OUT OF STEP WITH WAGE MOVEMENTS - UNWELCOME PRESSURE ON BUSINESS

"The 2.4 per cent minimum wage increase awarded today by the Fair Work Commission is out of step with record low wage outcomes across the economy and very low inflation. The increase will put upwards pressure on wages. It will be a significant impost on businesses at a time when the economic and business environment is difficult, risky and uncertain," Australian Industry Group Chief Executive Innes Willox said today.

Statement by Innes Willox
Chief Executive Australian Industry Group

"The 2.4 per cent minimum wage increase awarded today by the Fair Work Commission is out of step with record low wage outcomes across the economy and very low inflation. The increase will put upwards pressure on wages. It will be a significant impost on businesses at a time when the economic and business environment is difficult, risky and uncertain," Australian Industry Group Chief Executive Innes Willox said today.

"There is a clear risk that the decision will be to the particular detriment of people currently out of work and part-time employees hoping to secure additional hours.  With jobs growth slowing and unemployment and under-employment remaining at unsatisfactory levels, a more modest wage increase would have reduced the risks of adverse employment outcomes.

"The increase equates to $15.80 per week on the national minimum wage, $18.40 on the base trade rate, and over $30.00 for professionals.

"While the increase is higher than the 1.6% increase proposed by Ai Group, pleasingly the Commission has rejected the very large increase put forward by the ACTU. The unions wanted increases of $30 per week for classifications up to the base trade rate and 3.9 per cent for higher classifications," Mr Willox said.

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