The Australian Fair Pay Commission is handing down its decision on Thursday at 11am. The current minimum wage is $484.40 per week (or $12.75 per hour for a 38 hour week). The ACTU has asked for an increase of $30 per week, or 6.2%. The Commonwealth has made no precise recommendation. I’m guessing the increase will be closer to CPI, which would be 4.6%, or $22.

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8 Responses to AFPC

  1. slim says:

    From the outset I’ve thought that the AFPC minimum wage decisions will be relatively generous in the run up to the Federal election. Wouldn’t want to frighten the punters at this fragile stage. That’ll come later.

  2. Andrew Leigh says:

    I think that’s a bit too conspiratorial. I find it hard to believe that Harper and his commissioners are making decisions based primarily on helping the Coalition win.

  3. slim says:

    Not primarily, but certainly a factor.

    No conspiracy. Just human nature. Prime Ministers don’t appoint a person to such a significant office without reasonable confidence that he understands what’s expected of him. And for its maiden ruling it would be judicious to ensure the outcome was seen as reasonable and fair and beyond criticism of all but the extremes. To not do that would politically courageous.

  4. pre-dawn leftist says:

    Andrew, wake up and smell the roses! And I’m sure that the RBA has never avoided raising interest rates just before an election either…

  5. Matthew Finlay says:

    Come on guys, if you’re going to accuse someone of acting in a grossly unethical, not to mention illegal manner, you need to provide some evidence. To do otherwise is irresponsible, not to mention slanderous.

  6. Pat says:

    The issue is that it is nearly 1 1/2 years since the minimum wage was last increased increased, so a 6.2% increase would move it roughly in line with the cost of living. Otherwise the AFPC will reducing the real wage of the lowest paid workers.

  7. derrida derider says:

    Whatever the AFPC’s motives, they have in fact come up with a “generous” figure (generous is in quotes because it may not be generous at all to marginal jobseekers trying to get a job). So slim wins the tipping comp.

  8. Pingback: Andrew Leigh » Blog Archive » The Australian federal minimum wage is $511.86

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