Employers slam minimum wage claim

The Age ^ | 11/14/03

[Tumbleweed_Connection]

Australian employer groups have slammed a $26.60 pay claim for 1.6 million low-paid workers.

The Australian Chamber of Commerce and Industry (ACCI) said the ACTU's claim for next year's National Minimum Wages Case was "excessive and irresponsible".

"The claim - 5.9 per cent on the minimum wage - is more than double rises in the cost of living (2.6 per cent)," ACCI chief executive Peter Hendy said in a statement.

He said the claim would unfairly target small and medium sized businesses, preventing them from putting on new staff.

"Increasing the costs of doing business does not create one new job," Mr Hendy said.

"Employers have the work, but can't employ if the costs are too great."

The Australian industry Group chief executive Bob Herbert said the claim was "unrealistic and excessive" in an uncertain domestic and international economic climate.

"AiGroup will support a moderate increase - one which strikes a balance between the need to maintain a strong economy and a safety net of fair minimum wages," he said.

Mr Herbert said the AiGroup's submission for the National Minimum Wages Case would be announced around February next year.

ACTU secretary Greg Combet announced the pay claim for 1.6 million award workers today, saying it was both affordable and responsible.

"It will only add 0.1 per cent to aggregate earnings," he told a conference at Melbourne University today.

"It's not going to threaten inflation or interest rates or employment on any evidence available."

Mr Combet said the claim would take the minimum wage to $12.50 an hour or $475 per week.

[left-handed conservative chef]

"The claim - 5.9 per cent on the minimum wage - is more than double rises in the cost of living (2.6 per cent),"

Don't worry the cost of living will rise to offset the increase while people will still lose jobs.

I heard San Fran raised their min wage too. Where does that money come from? It comes from the small business owner, and now he has to charge more for the same service as before. Keep the Gov't out of the market.

[Republicus2001]

But wait! Why raise the minimum to only $7/hour? WHO CAN LIVE ON THAT!!! Minimum wage should be at least $250 per hour! Only when the lowest janitor can buy a house in Emerald Bay or La Jolla will we ever have true equality!