The Australian Council of Trade Unions will seek to lift the minimum wage above $26 per hour for millions of workers, declaring it will “not accept the lowest-paid workers in Australia going backwards because of the Reserve Bank and Donald Trump”.
The move comes as skyrocketing fuel prices triggered by the US-Israel war on Iran and a fresh cash rate hike by the RBA have put the squeeze on household budgets.
On Tuesday, ACTU secretary Sally McManus said working Australians needed pay rises to get them “ahead of inflation so they can continue to catch up”.
“Workers were the ones who felt it the most last time inflation spiked; we cannot let this happen again,” she said.
“This is why low-paid workers need and deserve a decent pay rise. Energy companies, the banks and the supermarkets continue to deliver their mega-profits. Hardworking Australians must not be left behind.”
Ms McManus said the cash boost would benefit about three million working-class Australians and add “about 0.6 per cent to the national wage bill”.
“That’s because we are talking about a pay rise for hospo and retail workers, disability workers, healthcare workers and baristas – not for high earners with large numbers of investment properties,” she said.
“Of course, employer groups will say that any wage rise will put pressure on inflation – like they do every year – and every time they have been wrong.
“And let’s get this into perspective, our entire 5 per cent wage claim will cost less than the recent $8bn half-yearly profits of BHP.
“What has been driving inflation is the cost of housing and petrol companies’ price gouging. Working people’s pay rises played no role.”
Ms McManus also pointed to scrapping negative gearing and the capital gains tax discount to drive down housing inflation.
“We could also put downward pressure on our power prices by putting in place a 25 per cent levy on gas exports to replace the failed petroleum resource rent tax,” she said.
“This would also bring in more revenue by ending the extreme windfall profiteering by major oil and gas companies.
“A levy like this would have raised an estimated $17bn last year – or more than twice the amount needed to fund a 5 per cent annual wage boost for lower-paid Australian workers who need and deserve it.”
