THE HON BRENDAN OCONNOR MP

SHADOW MINISTER FOR EMPLOYMENT AND WORKPLACE

RELATIONS
MEMBER FOR GORTON
E&OE TRANSCRIPT
DOORSTOP
WEDNESDAY, 4 JUNE 2014
CANBERRA
SUBJECT / S: Fair Work Commissions decision on minimum wage
BRENDAN OCONNOR, SHADOW MINISTER FOR EMPLOYMENT AND
WORKPLACE RELATIONS: I want to make some comments about the national
wage case handed down today by the Fair Work Commission.
The Fair Work Commission has handed down an increase for the 1.5 million
Australian workers that are on the minimum rate.
Thats an 1!."# wage increase if youre working at $! hour week.
Its %ust under a 5# cent increase for the hour that Australian workers would work.
It is a marginal increase on the real wage& that is& it has %ust ecli'sed the inflation rate
of (.) 'er cent.
This $ 'er cent increase& or in dollar terms 1!."# for a full time worker is welcomed
by the *''osition to ensure that the +uality of life of 1.5 million Australian workers is
maintained so they are able to co'e.
,ut what this wage increase& whilst it is welcomed by the *''osition& will not be able
to do is it wont be able to mitigate the im'act of the measures of the ,udget on
these low 'aid workers.
The ta- youll ha.e to 'ay when .isiting a doctor.
The ta- youll 'ay when you 'ick u' your medicine from a 'harmacy.
The ta- youll ha.e to 'ay at the 'etrol 'um'.
That means the 'ressure on low income families is going to be .ery& .ery difficult
indeed.
Whilst we welcome this decision we are .ery mindful that the ,udget measures will
soak u' the increase& and indeed in many cases e-ceed the increase that is being
'aid to the lowest 'aid workers in the country and that is& of course& a great shame
for those families.
Its e-actly why /abor will o''ose measures in this ,udget.
The other thing to note is this& that whilst we are talking about and welcoming the
decision about the minimum rate& the minimum rate in this country is under threat.
The 0o.ernments own ad.iser who headed u' the Commission of Audit made a
recommendation to cut the minimum rate in this country o.er the ne-t ten years& in
other words to ha.e 1.5 million Australian workers recei.e a cut for each year o.er
the ne-t decade.
Thats a recommendation of the Commission of Audit.
And whilst the 1inister for 2m'loyment has re%ected that recommendation it currently
is still being entertained& as outlined by the Treasurer and the Finance 1inisters
res'onse to the Commission of Audits recommendations.
3o the minimum rate in this country is under threat by this 0o.ernment.
It is also fair to say the referral by this 0o.ernment to the 4roducti.ity Commission of
the Fair Work Act will also e-amine the minimum rate in this country.
The *''osition strongly belie.es that hardworking Australians that are on a low rate
deser.e a decent life.
They deser.e a +uality of life and we dont want to see this country change radically
between the ha.es and the ha.e5nots because of an ideological attack on the
minimum rate in this country.
3o again& whilst I welcome the increase today by the Fair Work Commission lets be
under no illusion that there is an agenda by this 0o.ernment to alter the minimum
rate& to reduce that& as there is an agenda by this 0o.ernment to cut 'enalty rates.
JOURNALIST: ,usiness is saying this 1!."# increase cant be absorbed because
many businesses are struggling.
OCONNOR: As I made clear& this increase is barely more than maintaining the
wage for 1.5 million low 'aid workers.
If& for e-am'le& the Commission was to take the ad.ice of ACCI they would ha.e
been effecti.ely mandating a cut in the real wage of 1.5 million workers and their
families and I dont think that would be reasonable.
I think the Commission has had regard to the economic circumstances& has made
mention of the fact that growth in this country is low and indeed e.ery sector of our
economy is e-'eriencing low wage growth and therefore the ca'acity for inflation to
arise from this decision is unlikely and thats I think clear in the decision of the
Commission.
3o I think they.e weighed u' these matters& they.e weighed u' the economic
im'act& but they.e also& +uite rightfully& they.e looked at the ca'acity for 'eo'le to
maintain real wages.
UESTION: 3o %ust to be clear you think the Fair Work Commission has got it right6
OCONNOR: Well the Fair Work Commission is in a better 'lace because they are
the ones recei.ing submissions by the 0o.ernment& by em'loyers and by unions to
consider all of the factors and do so in a dis'assionate and 'ursuant to their ob%ects
under the act to come u' with the right decision.
We.e always had a res'ect and a high regard for the inde'endent um'ire making a
decision that in some cases will try and find its way through the submissions of
com'eting interests.
In this regard they ha.e maintained the real wage for 1.5 million workers.
,ut lets remember this& in doing that they ha.e not taken into account& and Im not
suggesting they should because thats not the way in which the Commission
o'erates& but they ha.e not taken into account the im'ost of this budget on those
workers.
UESTION: What about the argument that it will cost business to hire and it will end
u' costing %obs6
OCONNOR: That argument has been running for e.ery wage decision and e.ery
wage case in this country.
It will always be the case that unions will ha.e their .iew& em'loyers will 'ut their
.iew.
,ut to suggest that you shouldnt maintain the wage in this country& maintain real
earnings& is an unreasonable 'osition to take.
7ou need to find a balance.
/ets remember this too& the ga' between adult weekly wage income and the
minimum rate is widening and we dont want to see a further widening of that ga'.
The Commission hasnt acce'ted the submission of the unions& nor has it acce'ted
the submission of the em'loyers.
It has made its own decision based on the facts and based on the circumstances
that its brought to bear to find a balanced a''roach and for that reason we welcome
the decision by the Commission.
UESTION: Would you like to see the minimum re.isited if those budget measures
to 'ass 4arliament6
OCONNOR: What the *''osition would like to see is those measures not 'ass the
4arliament& namely being ta-ed to .isit the doctor.
,eing ta-ed by going to the 'etrol 'um'.
All these decisions were not decisions that were made by the 0o.ernment before the
election.
UESTION: ,ut the 084 figures out today are 'retty good& the 0o.ernment must
be doing something right6
OCONNOR: The economy is +uite strong. We.e always said this is a strong
economy.
Its the 0o.ernment that has been talking down the economy and suggesting were
in a crisis.
Were not in a crisis.
For that reason the Commission has taken into account the true economic
circumstances that we find oursel.es in and made& I think& a reasonable decision.
,ut lets look at what this budget will do.
The budget will 'lace the burden u'on low and middle income earners in this
country.
For that reason& e.en with this decision& theyre going to struggle to make ends
meet.
UESTION: 7ou talk about the economy being strong& but business is saying that
as far as theyre concerned were going back to a two5s'eed economy. That a lot of
todays economic growth was dri.en by the mining sector and smaller to medium
si9ed businesses outside of that arent doing well.
OCONNOR: When we were in 0o.ernment we said the same.
There are different regions that are doing better than others.
This decision is to make sure that there is a minimum rate for the lowest5'aid
workers in this country.
*f course& the engine room of decisions at work'laces is dri.en by collecti.e
bargaining.
We belie.e the best way to im'ro.e 'roducti.ity and economic growth is through
coo'eration and through collecti.e bargaining.
I think it is com'letely 'ro'er for em'loyees& em'loyers and unions to sit down at the
table and talk about wages and conditions and im'ro.ements in 'roducti.ity.
Theyre the sorts of things /abor introduced when we were in office& its something
we su''ort.
This howe.er is %ust ensuring there is a decent safety net for the lowest5'aid of the
Australian workforce.
For that reason we welcome the decision.
ENDS