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There will be no change to minimum rates of pay in Australian Pay & Classification Scales for 2009.
In a decision issued this afternoon, the Fair Pay Commission cited the marked change in the economic outlook since 2008 as the reason for the wage freeze.
"Employment growth is slowing, average working hours are falling, and the unemployment rate is expected to rise to 8.5%. As in previous downturns, the impact of these changes in the labour market will be felt most acutely by low-paid, low-skilled workers.
In the current environment, the ability of employers to offer sufficient work has been curtailed and there is a heightened risk that an increase in minimum wages would reduce employment and working hours.
The Commission recognises that consumer prices continue to increase, putting some pressure on household disposable income. However, the Australian Government's changes to the tax/transfer system and its recent fiscal stimulus packages have provided real increases to disposable income for most households maintaining the safety net.
Research shows that the burden of higher unemployment falls disproportionately on low-paid, low-skilled workers. It also falls on those attempting to gain a foothold in the labour market. The decision not to vary minimum wages at this time will help minimise the effect of the downturn on employment and particularly its impact on the most vulnerable workers.
In making this decision, the Commission has focused on protecting jobs and supporting a stronger recovery in employment as the economy improves."
If you have a query about the decision, or would like a copy of the 2008 wage rates, please call Emma on (03) 8822 3712 or 0411 708 073, or email her on emma@emmawatt.com.au.
2009-07-07
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