The FWC's annual wage review expert panel has today granted a "sustainable" CPI-beating 3.5% rise in all award rates and the national minimum wage, emphasising that now the inflation genie is back in the bottle, it will no longer "defer" taking action to reverse the pandemic-driven reduction in real wages.
The FWC's annual wage review expert panel will hand down its 2024-25 ruling on Tuesday morning, after the newly-returned Albanese Government urged a real increase in the minimum wage and award rates, the ACTU sought a 4.5% rise and ACCI and AIG no more than 2.5% and 2.6% respectively.
DEWR has told the Annual Wage Review expert panel at a consultation hearing this morning that while the local economy will "not be immune" if international economic conditions deteriorate as a result of US tariffs and other factors, it expects domestic growth to gradually pick up over this year and 2026.
The second-term Albanese Government has today delivered on a key election promise, asking the FWC's Annual Wage Review bench to grant an "economically sustainable" real increase in the minimum wage and award rates.
The first public policy changes to boost workers' power in more than 30 years - under the Albanese Government - have coincided with an increase in nominal and real wages and a rise in workers' share of the fruits of the economy, according to the Centre for Future Work's David Peetz.
A 9.2% increase to the national minimum wage and award wages would restore low-paid workers' buying power to pre-pandemic trends without significantly affecting inflation, according to research finding no consistent link between minimum wage rises and inflation since 1990.
The ACTU is calling for a 4.5% increase to the minimum wage, well above the current inflation rate of 2.4%, to lift the annual full-time rate by $2,143 to $49,770, while Victoria's Allan Government is making the same pitch as its federal Labor counterpart, calling for a real increase in the minimum wage.
Ahead of the May 3 poll, Prime Minister Anthony Albanese is supporting a real pay increase in this year's minimum wage case, going further than his 2022 election call for the FWC to ensure workers' pay not "go backwards".
The FWC's expert panel has this morning approved a 3.75% increase in all award rates and the national minimum wage, but has rebuffed the ACTU's bid for an immediate additional 4% for workers in highly-feminised industries, instead committing to a timetable to address the issue over the next 12 months.
