Key points go through to keeper

The federal government has sat on the fence over key arguments being put in this year’s minimum wage review, which finishes hearing evidence this week.

The review will apply to about 1.4 million workers or about 15 per cent of the workforce. The ACTU is pushing for pay increases ranging from $28 a week for the lowest-paid workers and for a 4.2 per cent pay increase for higher-skilled workers who depend on awards.

Unions are arguing that the analytical living cost index, which is running at about 4.5 per cent, is a better guide than the consumer price index, which is running at about 2.7 per cent.

Fair Work Australia president
Geoffrey Giudice
asked yesterday whether unions were trying to “have it both ways" by pushing a so-called hybrid pay claim.

Members of the FWA full bench asked the Commonwealth advocate, senior public servant John Kovacic, whether the government had a view on which cost of living data should be used. He said this decision was up to the tribunal to determine.

He took the same stance when asked whether the government supported a delay in paying this year’s minimum pay increase for employers hit by natural disasters and on whether the it supported the union’s “hybrid" claim.

The government has argued that minimum wages should be increased to cover the cost of living for the low-paid, but has not named a figure.

Employers say the increases sought by unions would be disastrous for small and medium business, adding $3.8 billion to annual costs.

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Australian Chamber of Commerce and Industry chief executive
Peter Anderson
said a rise of $28 a week would be counter-productive, pressuring businesses to cut working hours as well as putting pressure on inflation.

“An increase of anything like what the union movement is seeking this year would see at least 100,000 small businesses move to reduce working hours," he said in Melbourne on Monday.

“That would be a tragedy not just for their employees but for those businesses and for the customers."