Minimum Wages Case Each year the ACTU and unions claim a pay rise for Australian workers through a ‘Minimum Wages Case’ — which is now called the ‘Annual Wage Review’. There are about 1.4 million low-paid Australian workers on minimum award wages who rely on the Case to protect their living standards – that’s one in six workers. These workers include cleaners, retail and hospitality staff, child care workers, farm labourers, and some factory workers.  They include large numbers of women and part-time or casual workers employed in the private sector in lower-skilled jobs. The number of workers reliant on minimum award wages is falling as collective agreements become more widespread, but for many Australians the minimum wages case is their only chance of a pay rise each year. Since 2000, unions have been successful in achieving award workers $72 a week more than employers have offered in minimum wages cases. This is a significant achievement considering the challenge for unions in operating for most of this time under the former Howard Liberal Government’s unfair IR laws. It is also worth noting that unions vigorously pursue a pay rise in minimum wages cases for award workers despite the fact that most are not members of unions. Don’t leave us behind: Annual Wage Review 2011 Fair Work Australia has granted a 3.4% wage increase to Australia’s lowest paid workers in the 2011 Annual Wage Review, which will help award wage earners keep pace with the rising cost of living and participate in the nation’s strong economic growth. This will lift the award wage for the lowest paid workers to $589.30 - a 51c/hour increase from $15 an hour. Unions were seeking a $28 a week increase in the National Minimum Wage and in other award minimum wages up to the benchmark tradesperson’s rate; and a 4.2% increase for other award workers. Fair Work Australia’s decision for a flat 3.4% increase will help bridge a gap that has become too wide but is below the rate of increase to the Analytical Living Cost Index, which jumped 4.5 per cent in 2010 alone. The $19.40 increase will benefit about 100,000 Australian workers who are the lowest  paid in the country, on the National Minimum Wage The majority of the remaining 1.3 million workers on award wages will receive about $22 a week. With a growing economy, profits at record levels, low unemployment and sharply rising living costs, every Australian deserves a decent standard of living and the nation’s strong economic growth should not be a spectator support for the low-paid. While the average Australian income has jumped 21 per cent in real terms since 2000 and company profits have increased by 50% in the past five years alone, the real value of the minimum wage has increased just 7.1 per cent. Real pay cuts for the low paid under WorkChoices The former Liberal Government’s WorkChoices laws changed the way minimum wages were set to make them lower. This meant that over the period of the former Liberal Government’s WorkChoices system, the wages of over 1.4 million Australians reliant on award wages went backwards in real terms. Average award wages dropped by around $30 a week and some award workers had their real wages cut by almost $100 a week. In a final blow for award workers, the WorkChoices pay commission decided in July 2009 to freeze minimum wages — so award workers did not get a pay rise that year. The pay freeze decision meant the average award worker had to wait almost two years until July 2010 for a pay rise, despite having to cope with increases in rents, health care and other basic living costs in the meantime. It is only now, after the 2011 case, that the real value of award wages has been restored to what they were in 2006. New Fair Work laws The new pay setting body established by the Labor Government - Fair Work Australia (FWA) – now conducts the Annual Wage Review under new, fairer industrial relations laws. Under the new laws, the Panel considers not only the economic criteria, like inflation and productivity, but also important issues like social inclusion, relative living standards and the needs of the low paid. Fair Work Australia’s 2011 review concluded that the overall outlook for the economy is positive and that labour productivity is growing, underlying inflation is acceptable, unemployment is on the decrease and labour force participation is high. The panel also agreed with the unions that while the natural disasters during summer had affected some sectors in the economy, most businesses expected to recover and that there were government schemes in place to support those who needed it. FWA found a ‘a significant increase is appropriate which will improve the real value of award wages and assist the living standards of the low paid’. The Commissioners took the view that such an increase would not threaten business viability, jobs growth or add to inflation. Minimum wages are based on skill There are a range of minimum award wages, depending on the skill involved in the job. Note that there are also different minimum wages for workers covered by awards in the State industrial relations systems. For award workers in the Federal system, the 16 level benchmark award classification structure and different minimum award wage levels are shown below. Federal award classification and minimum weekly wage (from 1 July 2010)  C14 $589.30   C13 $606.40  C12 $629.70   C11 $651.30   C10 $686.20   C9 $707.80   C8 $729.30   C7 $748.80   C6 $786.80   C5 $802.80   C4 $824.30   C3 $867.40   C2(a) $889.00   C2(b) $928.00  NB: These rates takes effect from 1 July 2011. What’s next The ACTU and unions will begin preparing their submission to 2012 Annual Wage Review by Fair Work Australia in January next year. The ACTU’s argument for a minimum wage rise has been bolstered by new research showing Australians strongly favour a more equal distribution of wealth.