Following today’s Fair Work Commission (FWC) decision to lift the minimum wage by 3.3%, employer groups are having a good old-fashioned sook. From The Australian [my emphasis]:
Employers have slammed the decision as “devastating”, warning the increase would significantly impede employment growth…
The amount is half the increase sought by unions and more than double the amount proposed by employers…
Announcing the decision, Justice Ross said the increase would improve the relative living standards of award-reliant employees and workers on the national minimum wage.
“The level of increase we have decided upon will not lead to inflationary pressure and is highly unlikely to have any measurable negative impact on employment,’’ he said…
“The prevailing economic circumstances provide an opportunity to improve the relative living standards of the low paid and to enable them to better meet their needs,’’ he said.
“Over the last five years, the real value of the national minimum wage and modern award rates has grown at 4.3 per cent, which is less than half the rate of growth of labour productivity…
Australian Retailers Association executive director, Russell Zimmerman said retailers were already facing a complex operating environment and the increase would be extremely harmful to the growth and stability of the Australian retail industry.
“Today’s minimum wage increase of 3.3% will suppress the benefits achieved by the penalty rates reduction, negatively affecting increased trading hours for retailers and further delaying employment growth across the sector,” Mr Zimmerman said…
The Australian Chamber of Commerce and Industry said the increase risks the job prospects of vulnerable people in the labour market and puts pressure on small and award-reliant businesses facing increasing competition…
Half the increase demanded by the unions, double the real wages cut demanded by employer groups. Sounds about right to me. More so given it would come on top of the recent cut to Sunday penalty rates.
It’s not like Australian workers are taking an excessive share of the nation’s production.
Growth in employee compensation has fallen to the lowest level on record:
Australian workers’ share of Australia’s Total Factor Income (TFI) has been falling for decades, whereas business’ profits share has been increasing:
And this comes despite rising labour productivity:
If employer groups want to cut their wages bills, I suggest they look at their own bloated CEO and senior management salaries.
