Fair Work should deliver for low income earners: ACTU

Fair Work Australia will hand down its decision for the 2012 Annual Wage Review at 10am (AEST) on Friday.

Australian Council of Trade Unions (ACTU) secretary Dave Oliver said the one-in-six workers who depended on award rates of pay had fallen behind average wage earners in recent years.

"Friday's decision is a once-a-year opportunity for workers who depend on the award to get a wage increase and they deserve to keep pace with the wage rises being paid to the rest of the workforce", Oliver said.

Unions are seeking a $26 a week increase to lift the national minimum wage to $615.30 a week. This would be a 68 cent an hour increase from $15.51 an hour to $16.19 an hour.

For other workers who rely on the award above the benchmark tradespersons rate, unions have sought a 3.8 per cent increase.

Oliver said that an unsatisfactory outcome from the minimum wage review put Australia in danger of creating a working poor.

Employer groups have fought the move, saying union demands for a $26 a week rise in award wages is a threat to jobs and will target vulnerable employers.

Small business and employers will find wage increases completely unworkable, says Australian Chamber of Commerce and Industry (ACCI) chief executive Peter Anderson.

At a previous wages hearing at Fair Work Australia, Anderson said ACCI's position of a $9.40 wage increase was in line with inflation and would ensure job security.

Low business confidence and economic activity as well as minimal inflation meant moderation rather than big wage increases was required, Anderson said.