WorkChoices-era Pay Commission saves its worst for last

Today's decision by the soon-to-be-scrapped 'Fair Pay Commission' to freeze the Federal minimum wage and all other award wage rates is another kick in the teeth for working Australians from the Liberals' WorkChoices. ASU National Secretary Paul Slape said, "We are outraged by this decision, especially as it comes at such a time of severe hardship for many workers and even runs diametrically opposite to the Federal Government's stimulus policies."

ACTU Secretary Jeff Lawrence said the Fair Pay Commission had shown no respect for the contribution low paid workers are making to the economy during the downturn and had relied on discredited and flawed research.

"The Fair Pay Commission has saved its worst for last," Mr Lawrence said.

"The decision means ordinary working Australians and their families are bearing the brunt of an economic downturn they did not cause.

"Many workers have already lost their jobs, had their hours cut and now more than a million families are facing a pay freeze despite rising living costs.

"Only a week after new IR laws came into operation, WorkChoices is back from the dead.

"Working families are again the victims of the unfair wage-setting system established by the previous Liberal Government.

"The real wages of low paid workers have gone backwards since the Commission was established, and today's decision is another attack on their living standards.

"The costs of rent, food, medicines, education and utilities have all risen in the past year and families need a pay rise to keep up."

Mr Lawrence said the decision was unwise in the current economic circumstances and rejected the argument that a pay freeze for the low paid is good for the economy.

"A pay freeze will sap consumer demand and undermine confidence. Any green shoots of economic recovery will be nipped in the bud by this unfair and unwise decision.

"It will be felt not only in the homes of Australia's 1.3 million minimum wage workers, but in the shops and businesses in every main street of every Australian town and suburb."

Mr Lawrence said the decision runs counter to the economic stimulus strategy, ignores the Federal Government's submission in favour of maintaining real wages, and even ignores the views of some business groups who supported a modest wage rise.

"There is no credible evidence that modest rises in minimum wages have a negative effect on jobs. This is a furphy put about by the same free market fundamentalists that brought us deregulation and who contributed to the GFC.

"We look to Fair Work Australia's new wage-setting body to provide a fairer and more rigorous approach."