Six things you need to know about the minimum wage in 2023

Right now, union members are campaigning for a wage increase for the 3 million workers who depend on minimum or Award wages.   

Every year the Fair Work Commission reviews Award wages and after listening to the arguments, decides what increases, if any, workers will get.   

Last year, unions won an historic increase of between 4.6 and 5.2 per cent.  

This year we are experiencing the biggest cost-of-living increase in a generation, so workers need a pay rise to keep their heads above water. We’re arguing for a cost-of-living pay rise so the lowest paid workers in our country can survive.   

But get this – some employers argued in 2022 there should be no increase at all. And this year, the business lobby is doing their best to make sure workers fall even further backwards. 

So here are the six things you need to know about how everyone benefits from fair pay rises.

1. Corporate profits are driving inflation

It is no coincidence that everywhere you go, prices are ridiculously expensive. Behind this excruciating inflation are two causes. 

First, overseas supply issues. Second, major companies putting up prices more than they need to. 

Many companies have worked out they can put up prices more to fatten their profits because people expect prices to be going up. They then are quick to blame everyone else rather than admit they’re the problem. 

You pay more. They make more profit. A pay rise is only fair.

Employer groups are again arguing that 2.6 million minimum-wage and award-wage workers should suffer big real-wage cuts. They have called for a 3.5% increase – or a $1500-a-year real pay cut for a full-time worker on the minimum wage based on the current rate of inflation. pic.twitter.com/9urbtcbDDy

— Australian Unions (@unionsaustralia) April 3, 2023

2. A rise to the minimum wage keeps workers in jobs

Big business and their supporters in the media continue to peddle tired and disproven claims that raising raise the minimum wage will cost jobs.   

Just consider this – they claimed that businesses would shut if workers got a 5 per cent pay rise last year. This wasn’t true: unemployment went down.  

When you increase the minimum wage:   

• Low-paid workers have more money to spend.   

• Minimum Award workers spend everything they earn – it all goes straight back to businesses and into the community 

In fact, if working people don’t have a high enough wage to spend anything, this will cost jobs. That’s the position we’re in now. Low paid workers need a pay rise to keep the economy where it is now and not go backwards.

3. A minimum wage increase is affordable

Big business is seeing record profits – the largest and most extreme profits in decades.  

We want businesses to be making a profit, but those profits need to be shared with the workers who help make it.   

With such massive corporate profits, businesses can afford to increase wages for their lowest paid workers.

4. No matter how the economy is doing, big business always say you can’t have a pay rise

One of the most frustrating big business myths is their claim that “now is not the time” for a wage increase, no matter the state of the economy.   

When the economy is performing well, we’re told that wage increases would negatively impact it. When the economy is struggling, we’re also told that it’s not the right time for a pay rise.   

It seems that no matter what the situation, workers can’t catch a break.  But the truth is that wage increases helps the economy, supports local businesses and creates more jobs. 

5. A rise to the minimum wage reduces the gender pay gap 

Women are paid 13 per cent less than men – this is known as the gender pay gap.   

Because women are more likely to be on award wages, an increase in the minimum wage helps reduce the gender pay gap. 

Thanks to new laws brought about after heaps of union campaigning, the Fair Work Commission now must take gender equality into account when they set minimum wages.

6. Workers should be able to live a decent life on the minimum wage

While 30 years ago, our minimum wage was enough to live on, today is it $103 dollars a week below the poverty line.   

The minimum wage in Australia was originally supposed to ensure that all working people could live a decent life – that’s part of the promise that Australia used to make to workers.   

We need to ensure that the minimum wage is enough to live on.   

So, remember when big business lobbyists say that Australians are too highly paid, they’re just talking about their own executive bonuses.

What next?

Union members can’t fight for Australians living standards and pay rises on our own.   

If you support fair pay rises then you belong in the union movement and we need you.