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Unions, business clash over pay push

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The ACTU will push for a pay hike of 5 per cent in the upcoming annual wage review, arguing that an inflation-beating pay increase can be afforded by businesses when profits are surpassing their pre-pandemic levels.

But the ACTU’s claim will be met with fierce resistance by employers, while the government has signalled a more guarded approach, arguing that the real wages of Australia’s 180,000 lowest paid “should not go backwards”.

The ACTU’s proposed pay hike would lift the national minimum wage to $24.39 per hour or $926.82 a week, up from its current level of $23.23 per hour or $882.74. Despite warnings from business groups ahead of last year’s decision that an increase in excess of inflation would exacerbate price pressures, inflation has since retreated, falling from 6 per cent in the year to June, to just 4.1 per cent in December.

Earlier on Monday, the country’s largest business organisation, the Australian Chamber of Commerce and Industry , called for an increase of “not more than 2 per cent”.

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