Employers hit with 2.5% wage & 0.5% super increases

Print business owners are facing a 2.5 per cent rise in the minimum wage from 1 July, and a 0.5 per cent increase in everyone’s super on the same date.

The first of July is also when paper, board and wide format media prices rise, with Spicers putting six per cent on across the range, Ball & Doggett going for a range of increases.

The Fair Work Commission says through extensive consultation with employer groups and unions, it made the decision to increase the National Minimum Wage (NMW) and minimum rates of pay in modern awards by 2.5 per cent.

Walter Kuhn, President of PVCA said: “There will be a 2.5 per cent increase to minimum rates. Unfortunately, the increase will come into effect from the first full pay period commencing on or after 1 July, we are a little disappointed that the FWC left it this late to announce the increase.”

Charles Watson, IR and Policy manager at TRMC, said: “Arriving at a 2.5 per cent increase was certainly a balancing act for the Commission this year. The ACTU asked for 3.5 per cent, some employer groups asked for 1-1.5 per cent, and the usual suspects asked for zero per cent increase. As usual, the Commission fell somewhere between. Overall, the minimum adult wage increase is a moderate $18.80 per week and will allow the lowest paid employees to have increased spending ability, which is beneficial for all businesses and the economy generally.”

However, Ines Willox, CEO of Ai Group whioh represents a range of employers, slammed the award, saying: “A 2.5 per cent minimum wage increase is unwarranted when the latest inflation figure is 1.1 per cent and with wages across the economy only rising at an average rate of 1.5 per cent.”

The increase to the NMW and the minimum rates in the majority of awards that apply to the printing industry – including the Graphic Arts, Printing and Publishing Award 2020 - will apply from the first full pay period commencing on or after 1 July.

For award-covered employees, the weekly rates of pay in the Graphic Arts, Printing and Publishing Award 2020 and the Clerks – Private Sector Award 2020 will increase by 2.5 per per cent, rounded to the nearest 10 cents, with commensurate increases in hourly rates on the basis of a 38-hour week.

For award/agreement-free employees, the NMW will increase from $753.80 per week ($19.84 per hour) to $772.60 per week ($20.33 per hour).

If your employees are covered by another Award/agreement, or you are unsure if they are award/agreement-free, please contact the PVCA HR Service for advice. PVCA says all employers should check employee rates of pay and conditions to ensure they are meeting their minimum wage obligations following the annual wage increase.

The PVCA HR Service will remind members closer to the date when the increase is set to take effect, including by updating our relevant modern Award wage guides.

Watson said: “The national minimum wage increase will flow into industry Awards in the coming weeks, once the maths has been done by the Commission, and after they give me a chance to double check their figures. For those businesses in the industry who pay above the Award minimum rates, they will be able to offset or absorb the increase so long as they continue to pay at least equal or more than the Award rates. Companies with enterprise agreements will need to ensure their employees remain better off compared to the Award rates.”

Thursday 1 July is a red letter day for the print industry, with the wage increases, the super increase, and virtually all paper, board and wide format media going up on that date.

An unimpressed Willox said: "A 2.5 per cent increase is too much in the current environment, particularly when employers are also faced with a 0.5 percentage point increase in the Superannuation Guarantee on 1 July, and low paid employees have benefitted from personal income tax changes equivalent to a 1.6 per cent increase in pre-tax income. When these factors are taken into account, the remuneration increase totals 4.6 per cent for an employee on the NMW.

"On a purchasing power parity basis, Australia has the highest national minimum wage in the world. The increase will put even more distance between Australia's national minimum wage and minimum wages in other countries.

"The decision sends a very bad signal and is likely to impact adversely on the recovery. At the current stage of the recovery, the focus needs to be on boosting employment. The decision will create a real risk that jobs growth and inroads into unemployment and underemployment will slow considerably.

"There remain many hurdles to a complete recovery. The global pandemic is continuing and the level of infections in many countries is increasing rapidly. Major travel restrictions are set to remain in place in Australia for at least the next 12 months and are putting a severe restraint on growth prospects.

"The many thousands of businesses that are struggling will find today's decision very hard to fathom," Willox concludes.