British Evidence Backs Living Wage

Date: 01 March 2000

The ACTU case to the Australian Industrial Relations Commission to raise the minimum wage for the low paid has received critical support from a landmark British report.

The report, by the British Low Pay Commission, released on 17 February, has found that the introduction of a national minimum wage in Britain for the first time, has had "no measurable impact on overall employment".

The Commission's interim assessment of the impact of the National Minimum Wage of £3.60 per hour, followed its introduction in Britain in April last year.The rate will increase to £3.70 on 1 October.

ACTU Secretary Greg Combet today said this was the biggest, most authoritative piece of evidence to date that increasing minimum wages did not mean a loss of jobs.

The report found that: the National Minimum Wage had been introduced successfully with no significant adverse effects on the economy; more than 1.5 million employees had benefited from its introduction, particularly women; employment continued to grow in low-paying industries; productivity and efficiency had increased as a result; and that both employers and workers had adjusted well to its introduction.

It also found that the minimum wage would need to be regularly reassessed and increased.

'This report backs the ACTU's argument that increasing minimum wages does not impact adversely on the economy,' said Mr Combet.

'Our claim will help low paid workers without resulting in a loss of jobs, and will underpin Australia's strong productivity growth.

Australian unions are seeking an increase in minimum award wages of $24 a week, or 63 cents an hour.

Up to 1.7 million low paid workers stand to benefit from success of the Living Wage claim, most of whom are part timers, casuals and women.

For further information

Contact:	Clare Curran
Union:	Labor Council of NSW
Phone:	0417 101 370
WWW:	http://www.actu.asn.au

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