The Fair Work Commission has raised the national minimum wage (NMW) by three per cent - which unions have called too low, and business, including the PIAA, says is too high.
The NMW will increase to $740.80 per week or $19.49 per hour from the first pay period starting 1 July, a smaller rise than last year's 3.5 per cent hike. Iain Ross, president of the Fair Work Commission (FWC), said a drop in GDP growth and inflation, as well as tax-transfer changes benefiting low-income households, justified the lower increase.
Business groups had pushed for an increase of no more than 1.8 per cent prior to the decision, and Andrew Macaulay, CEO PIAA, said the three per cent rise would adversely impact small business.
"The ACTU demanded the minimum wage rise by more than 10 per cent over the next two years. This won’t help younger workers without experience, lower-skilled workers and the long-term unemployed. How can they possibly compete against more experienced candidates who are already paid the minimum wage?
"If a small businesses owner has to choose between two candidates earning the same wage, they will select the candidate with experience," he said.
However Ross said, "We are satisfied that the level of increase we have decided upon will not lead to any adverse inflationary outcome and nor will it have any measurable negative impact on employment.
"Such an increase will mean an improvement in real wages for those employees who are reliant on the NMW and modern award minimum wages and an improvement in their living standards," he said.
Unions, meanwhile, had been angling for a "living wage", translating to a six per cent increase this year and 5.5 per cent in 2020.
Lorraine Cassin, national print division secretary at the AMWU, said this year's increase is a step in the right direction, but falls short of what print workers need.
"An extra 47 cents per hour, or $21.60 per week, is just not enough to keep up with the rising costs of living that workers are facing. Many print workers, particularly those in rural and regional areas, are reliant on the Graphic Arts Award and will continue to struggle to make ends meet even with this pay rise.
"We are disappointed that the Commission didn’t heed the ACTU’s calls to introduce a living wage, but we will continue to campaign for higher wages," she said.