Minimum Wages Case Each year the ACTU and unions claim a pay rise for Australian workers through a  ‘Minimum Wages Case’ — which is now called the ‘Annual Wage Review’. There are over 1.4 million low-paid Australian workers on minimum award wages who rely on the Case to protect their living standards. These workers include many cleaners, retail and hospitality staff, child care workers, farm labourers, and some factory workers.  They include large numbers of women and part-time or casual workers employed in the private sector in lower-skilled jobs. The number of workers reliant on minimum award wages is falling as collective agreements become more widespread, but for many Australians the minimum wages case is their only chance of a pay rise each year. Since 2000, unions have been successful in achieving award workers $72 a week more than employers have offered in minimum wages cases. This is a significant achievement considering the challenge for unions in operating for most of this time under the former Howard Liberal Government’s unfair IR laws. It is also worth noting that unions vigorously pursue a pay rise in minimum wages cases for award workers despite the fact that most are not members of unions. Real pay cuts for the low paid under WorkChoices The former Liberal Government’s WorkChoices laws changed the way minimum wages were set to make them lower. This meant that over the period of the former Liberal Government’s WorkChoices system, the wages of over 1.4 million Australians reliant on award wages went backwards in real terms. Average award wages dropped by around $30 a week and some award workers had their real wages cut by almost $100 a week. In a final blow for award workers, the WorkChoices pay commission decided in July 2009 to freeze minimum wages — so award workers did not get a pay rise that year. The pay freeze decision meant the average award worker had to wait almost two years until July 2010 for a pay rise, despite having to cope with increases in rents, health care and other basic living costs in the meantime. New Fair Work laws The new pay setting body established by the Labor Government - Fair Work Australia (FWA) - conducted the 2010 Annual Wage Review under new, fairer industrial relations laws. Under the new laws, the Panel considers not only the economic criteria, like inflation and productivity, but also important issues like social inclusion, relative living standards and the needs of the low paid. FWA’s Minimum Wage Panel decided on an increase of $26 a week for award minimum wages, taking the national minimum wage to $569.90 per week or $15 per hour from 1 July 2010. Fair Work Australia’s review of economic conditions indicated that since March 2008 the Australian economy has performed much better than expected. During that time, productivity, prices and real earnings have grown but minimum wages have not. FWA found a ‘strong case for a rise in minimum wages to provide a fair and relevant safety net, protect the relative living standards of award-reliant employees and assist the low paid to meet their needs’. The Commissioners took the view that such an increase would not threaten business viability, jobs growth or add to inflation. Minimum wages are based on skill There are a range of minimum award wages, depending on the skill involved in the job. Note that there are also different minimum wages for workers covered by awards in the State industrial relations systems. For award workers in the Federal system, the 16 level benchmark award classification structure and different minimum award wage levels are shown below. Federal award classification and minimum weekly wage (from 1 July 2010) Notes: (1) This is the National Minimum Wage (NMW). Around 100,000 workers are on this rate of pay. (2) This is the award minimum for a qualified tradesperson. (3) This is the rate of pay for a small number of workers who are in managerial or professionally qualified jobs and who are covered by awards. What’s next Unions will campaign for a further rise in minimum wages for award-reliant workers in Fair Work Australia’s Annual Wage Review which is due to take place in the first six months of 2011.