
Issue No 117		26 October 2001

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News

Living Wage Claim For GST Rises

Low paid workers will seek a $25 a week wage rise to offset the increase in basic goods and services as a result of the GST under the the ACTU's Living Wage Claim for 2002.

Announcing the claim in Melbourne this week, ACTU Secretary Greg Combet said the $25 increase was needed by many workers struggling to keep up with price rises on essential household expenses following the introduction of the Government's GST.

"Hikes in the cost of fresh food, petrol, child care and other household items have far exceeded even the Government's upper-band GST forecasts and are making it virtually impossible for many working families to keep up," Combet says.

"The most recent prices survey by the ACCC show that despite predictions fresh food prices would fall by 1.1%, fresh and unprocessed food had gone up by massive 10.3% since the GST was introduced. Bread is up by 5.1%, and car running costs and alcohol and tobacco products up by 5.1% and 11.2% respectively.

"Half of the 1.7 million employees who depend on award wages for their livelihoods are earning less than $13 per hour, or $500 a week. Many of them are women struggling to support families through work in the hospitality, retail, cleaning, childcare and clothing trades," Combet says.

A NEWSPOLL survey published in this week's Australian confirmed that the burden of the government's GST has fallen hardest on low-income earners. Fifty-one per cent of poll respondents said they are worse off as a result of the GST. Households earning less than $30,000 a year, 65% reported feeling worse of as a result of the GST.

Combet says the ACTU's $25 claim was economically affordable, representing an average annual pay rise of 3.8%, compared to the latest 5.3% rise in Average Weekly Ordinary Time Earnings (AWOTE) reported by the Australian Bureau of Statistics.

Under the claim, award rates would rise by $25 to bring the Federal Minimum Wage to $438.40 per week ($11.54 per hour). The ACTU has calculated that the claim would add less than 0.1% to the Consumer Price Index and contribute less than 0.2% to economy-wide earnings over 12 months.

"Despite John Howard's promise that no-one would be worse off under his Government, low-paid workers have been hard hit by the GST. If the Federal Government is concerned about a fair go for working families, then it should support the unions' Living Wage claim."

Real wage and salary income for the lowest-paid 40% of Australian households fell by between $13 and $85 a week during the 1990s, according to a report last month by the National Centre for Social and Economic Modelling (NATSEM). Over the same period, the highest-paid households received real increases ranging above $100 a week.

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  Issue 117 contents

Interview: Brothers In Arms
Labour historian Marilyn Dodkin explains how she exposed ASIO ties with Labor Council's Cold War leadership.

Politics: Defending the Faith
Launching 'Brothers', Premier Bob Carr gave his own take on the allegations that union leaders worked with security agencies during the Cold War.

History: Surviving the Split
In this extract from 'Brothers' Marilyn Dodkin, looks at the manouverings around the establishment of the DLP.

International: Viral Attack
Postal unions in the USA are mobilizing to protect their members from the widening repercussions of an apparent bio-terrorist attack.

Unions: A Living Wage
The ACTU this week unveiled its claim for the 2002 Living Wage Case. Here's what they'll be arguing.

Campaign Diary: Week Three: Wave Them Goodbye
In a week when our boys and girls went off to war, Labor fought a desperate battle to fight the election on the home front.

Human Rights: Colombia's 'Dirty War' Against Unions
It might be tough being an organiser in Australia under the Howard Government, but spare a thought for Colombian trade unionists.

Review: Red Rag Unfurls
Ian Syson is an upfront, knockabout bloke. He heads up a new, small, independent publishing outfit called Red Rag Publications.

Satire: New Hope for Labor: Mackerras Tips Liberal Win
The electoral hopes of the Labor party have revived dramatically, after the perennially unreliable analyst Malcolm Mackerras forecast a huge victory for the Liberals.

» Unions Call for Air Price Floor

» With Friends Like the Banks, Who Needs Kiwis?

» Living Wage Claim For GST Rises

» New Compo Showdown Looms

» NIDA Tax Rorts Embarrass Howard

» First Case Under NSW�s New Pay Equity Principle

» Veil of Silence on Public Sector Outsourcing

» False Start for Race Day

» Union Proxy Campaign Gets A Boost

» Nauru Guards Claim Back-Pay

» Unions Await Final Triumph

» PM Claims No Aged Care Nursing Home Crisis!

» Eighty Woolies Cleaners About To Lose Jobs

» CFMEU Gets Disabled Athlete A Start

» Malaysian Solidarity Action in Sydney

» Activists Notebook