Factsheet 3

Change the way minimum wages are set to make them lower

Important changes coming from 1 July 2005

The Howard Government has said it will use its new Senate powers to take away many of your basic rights at work.

The Government wants to change the way minimum wages are set to make them lower.

The Howard Government has opposed every minimum wage increase since 1996.

The minimum wage is currently $484 a week ($12.75 per hour) but if the Howard Government had its way minimum wage workers would be at least $50 a week - or $2,600 a year - worse off than they are now.

For more than 100 years minimum wages in Australia have been set, reviewed and increased by an independent body, the Australian Industrial Relations Commission.

This system ensures that low paid workers and their families are not left behind.

The Howard Government believes that minimum wages in Australia are too high.

When asked to guarantee that minimum wages would not be lower under a new system, the Howard Government Minister, Kevin Andrews said: “I am not in the business of giving guarantees for or against anything.” ABC Radio, 12 April 2005

The Government wants to change the way minimum wages are set by taking away the powers of the independent Australian Industrial Relations Commission to set fair minimum wages.

Under the Government’s plans minimum wages would be set by people specially chosen by the Government to make sure wages stay low.

This will reduce the living standards for many people who are only just keeping their head above water.

Unions don’t want this USA-style system.

In the USA minimum wages are just US$5.15 an hour and haven’t increased for 8 years, leaving many working families living below the poverty line.

Download Detailed Table of Proposed Changes [jpg]


Copyright - Mike Knight, Herald Sun