WCI confirm low-paid are left behind

Date: 23 November 2000

ACTU Secretary Greg Combet has called on the Federal Government to support the ACTU's $28 pay claim for low-paid workers following the release today of Wage Cost Index data confirming wages growth remains moderate and well below the Reserve Bank's comfort zone.

23 November 2000

ACTU Secretary Greg Combet has called on the Federal Government to support the ACTU's $28 pay claim for low-paid workers following the release today of Wage Cost Index data confirming wages growth remains moderate and well below the Reserve Bank's comfort zone.

Mr Combet said the lower than expected 3.1% annual Wage Cost Index result confirmed the economy could sustain a decent pay rise for the low-paid.

"The economy may be doing well but many low-paid workers are being left behind. They missed out under the Government's tax cuts and now face $1 petrol, GST price hikes and climbing interest rates. They need a decent pay rise just to make ends meet," said Mr Combet.

Mr Combet said that the low Wage Cost Index outcome result underlined the fact that last months 6.1% change in Average Weekly Ordinary Time Earnings (AWOTE) figure did not reflect what was really happening to the wages and salaries of ordinary Australians.

AWOTE is widely recognised as a volatile and inaccurate measure of wage growth as it is subject to composition changes in the workforce and is artificially inflated by big pay rises for high income earners. The Federal Government in its submissions to last year's Living Wage case described the Wage Cost Index as 'a better measure of the underlying trend in wage costs than current measures such as AWOTE.'

"The only real winners from a high AWOTE are the politicians who have linked their pay to increases in AWOTE. Instead of lecturing the low-paid on wage restraint, Peter Costello should offer to give back the automatic $205 a week pay rise he will get if AWOTE remains at its current level," said Mr Combet.

The ACTU launched its Living Wage Claim 2001 earlier this month. The $28 a week claim would increase the Federal minimum wage from $400 a week to $428 and would benefit between 1.5 and 2 million low-paid workers who rely on increases in minimum award rates to maintain their living standards.

"If this Government is serious about sharing the benefits of economic growth then they should now support the ACTU's claim for a fair pay increase for low-paid workers," said Mr Combet. ENDS

For further information

Contact:	ACTU George Wright
Union:	ACTU
Phone:	0396635655
Contact Mobile:	0419 556 616
WWW:	http://www.actu.asn.au/

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