Bill Shorten Campaigning for Increase to Minimum Wage

With a federal election looming, Opposition Leader Bill Shorten has pledged that Labor would change the rules to increase the minimum wage.

The minimum wage, current set at $18.93 per hour, is determined by the Fair Work Commission, the nation’s independent workplace relations tribunal. In order to effect change, a Shorten government would need to alter the Fair Work Act and pass any amendments through both Houses of Parliament. Mr Shorten said he trusts the Fair Work Commission, but that ‘periodically they get it wrong’: 

We want to help the Fair Work Commission with the guidelines they use to set the minimum wage. And we want them to take into account more factors.

ACTU Secretary Sally McManus has called for a rise of 6%, or a $43 per week, this year. The ACTU position is for full-time workers to receive 60% of median earnings.  That would require a 10.7% increase ($72.80 per week) over two years.  Such an increase in a relatively short space of time has its critics, with business groups claiming it would result in particular financial strain for new and small businesses.