Ai Group has today presented its submission to the Fair Work Commission (FWC) on the Annual Wage Review.
“The Commission’s decision on minimum wage rates will be made amid highly challenging and precarious economic times,” Innes Willox, Chief Executive of the national employer association Ai Group said today.
“In seeking to provide ‘a fair and relevant minimum safety net’ and ‘the maintenance of a fair safety net of minimum wages’ as the Fair Work Act intends, the Expert Panel must strike a fair balance between the equally important and inherently interconnected interests of Australian employees and their employers.
“The Panel must strike such a balance in the context of historically high inflationary pressures which are impacting both employers and employees. Other considerations include our slowing ‘multi-speed’ Australian economy, a weak global economic outlook and anaemic or indeed declining profitability in major industries.
“The wage decision must also be made in a manner that avoids reversing the recent, though tenuous, gains in employment and hours worked.
“Ai Group acknowledges the particular pressures that are bearing on low paid workers in lower-income households. Crucially, the circumstances of employers also struggling with cost pressures, must similarly be weighed.
“A simplistic adherence to a proposition that wages must follow, or indeed exceed, current inflation levels cannot be accepted. A more nuanced, responsible and moderate approach is required in the interests of all stakeholders.
“Ai Group has not at this stage of proceedings advanced a specific quantum for any proposed increase. It is premature to do so, given the turbulent economic conditions and uncertainty over the approach that will be taken in the Commonwealth Budget to various matters, including any measures that the Government may introduce to assist low-income households,” Mr Willox said.
Further Ai Group commentary on the Wage Review:
