Unions Press For Minimum Wage Rise

Date: 16 January 2003

Unions are stepping up their push for an increase in minimum award wages after an explosion in the pay packets of top company CEOs last year.

The ACTU said an analysis of the top 100 CEO incomes (not counting retirement benefits) shows they increased by an average 38% last year - an average pay rise of more than $10,000 extra per week.

Unions will next month lodge detailed submissions seeking an extra $24.60 per week for 1.7 million low paid workers in the ACTU's Minimum Wage Case in the Australian Industrial Relations Commission.

ACTU President Sharan Burrow said it was outrageous for the Federal Government and employer groups to oppose an extra $24.60 for low-paid employees when they were doing nothing about skyrocketing executive salaries.

"For the last seven years the Howard Government has refused to support any increase above $10 a week in the ACTU's Minimum Wage Cases," Ms Burrow said.

"This year unions are telling Mr Howard that $10 a week is not enough when the Government's big business friends are pocketing an extra $10,000 per week. The Howard Government is allowing one rule for senior executives and applying another rule to everyone else."

Company data shows that the top 100 Australian CEOs' average annual salary increased from $1.45 million to $2 million last financial year - a 38% pay rise of $550,000 a year, or $10,576 per week.

"There has been a massive increase in inequality. The top 100 CEOs' average income in 2001 was 67 times the Federal Minimum Wage. In just 12 months it has skyrocketed to 89 times the Federal Minimum Wage," Ms Burrow said.

"The extra pay earned by top CEOs in just a fortnight ($21,152) is roughly equivalent to the entire annual pre-tax income of employees on the current Federal Minimum Wage ($22,432)."

The ACTU's 2003 Minimum Wage claim would increase the Federal Minimum Wage to $12 an hour before tax, or $456 per week for full time adults.

If successful, the claim would provide an average annual increase for award workers of 4.4% - within the Government's 4.5% comfort range for inflation. Treasurer Peter Costello told Federal Parliament on November 14 last year that "a wage increase of 4.5% will not be inflationary."

For further information

Contact:	Jeremy Vermeesch
Union:	ACTU
Contact Mobile:	0408 513 849
Fax:	(03) 9663 8220
Email:	jvermeesch@actu.asn.au
WWW:	http://www.actu.asn.au/

LaborNET is proudly created, designed and programmed
by Social Change Online for the Labor Council of NSW
[Credits] [Site Matters]