MINIMUM WAGE RISES TO $948 A WEEK

The VMA says that while the inflation-busting mandated rise in minimum wages of 3.5 per cent was marginally higher than expected, and will put pressure on employers, it was a better outcome than the 4.5 per cent the ACTU was demanding.

The 3.5 per cent that the Fair Work Commission awarded is the biggest rise since before the pandemic, and will impact 2.6 million Australians, including a number in print.

Business leaders warn that the large rise will be unsustainable for small businesses without economic reform. Business is also having to stump up an extra 0.5 per cent in super payments from 1 July, meaning they are paying a four per cent increase in wages overall. 

All nine Awards that the VMA oversees, from print and graphic design to signage, will be affected by the new mandate, which comes into effect on 1 July. The new adult National Minimum Wage for full-time (38 hour working week) employees will be $948 per week, or $24.95 per hour. That is up from the current $915.90 per week or $24.10 an hour of the current rate.

Kellie Northwood, CEO of the VMA, said, “Given the current domestic economic environment, including ongoing low national productivity rates and increased input costs, the VMA sought that any increase be moderated against those factors. The outcome from the Commission’s decision is marginally higher than expected.”

“We realise there are cost of living factors which affect lower paid workers, however, a significant increase would put pressures on employers and negatively affect inflation. Given the rate of inflation has only recently fallen into the RBA’s target rate of 2-3 per cent, we did not see justifiable rationale to support ACTU’s claim for a 4.5 per cent increase to the minimum wage.”

“The VMA has provided members with a breakdown of the decision, and over the coming weeks we will work with the Commission on further communication to the Award Summaries and notifications for our members to confirm calculations for inclusion in relevant industry Awards, before they become operational from 1 July.”

Many print businesses pay above Award rates.