Wage rise decision ‘over the top’ –

The 3.6 per cent increase in the minimum wage, granted by the Australian Industrial Relations Commission (AIRC) Full Bench, is likely to deter printing companies from hiring new staff, according to Greg Parkes, national employee relations director. He described the decision as “over the top.”

"This will undoubtedly cause many employers to pull back from increasing their workforce and may cause some to shed jobs in an industry where profit margins are notoriously tight," he said.

The historic last national wage case decision to be granted by the AIRC followed an application by the ACTU to vary federal awards including the Graphic Arts (General) Award.

The ACTU sought a flat dollar adjustment of $26.60 per week in award wages. Printing Industries, in conjunction with the Australian Chamber of Commerce and Industry, opposed the ACTU claim and argued that any increase should be capped at $10 per week. The Federal Government also made submissions supporting similar sentiments and arguing that the ACTU claim should be rejected.

The government supported a conditional increase of $11 per week. State and Territory Governments supported an increase of $20 per week. The decision will increase the federal minimum wage to $484.40 per week. "As with previous decisions the wage increases will be fully absorbable into over award payments," said Parkes.

The operative date for the wage increases in Victoria is to be deferred until after 1 August 2005 in consideration of the financial impact to employers in that state of the common rule award system.

"The Federal Government has indicated in its workplace relations reform proposals that it will establish a new Australian Fair Pay Commission to set minimum wages in the future with outcomes based on more rigorous economic terms of reference," said Parkes.

These views are strongly disagreed with by Steve Walsh, assistant national secretary for printing at the Australian Manufacturers Workers Union. According to Walsh, the AMWU welcomes the increase and views it as a justified development. “Over the years the safety net handed down by the IRC has been fair, and has recognised the need for a minimum rate of pay that provides security for workers.”

Walsh echoes the concerns of the union movement as to how the entitlements of workers will be protected once the Federal Government gains control of the Senate later this year. “We remain very concerned as to whether fair wage increases will be maintained once the government’s proposed new industrial relations laws are implemented,” he says.