THE peak lobby for small- and medium-size businesses has broken from the tradition of a universal minimum wage by requesting an exemption for those struggling in the two-speed economy
In its submission to the Fair Work Australia minimum wage review, the Australian Chamber of Commerce & Industry suggests a $9.40 increase in award wages with a special carve-out for industry sectors "particularly impacted" by the patchwork economy.
The exclusion would apply to the national minimum wage as well as other award pay rates and capture employers in manufacturing, retail and tourism.
"In 2012, it is time the voice of Australian business was heard loud and clear, particularly the voice of those award-reliant businesses struggling in the slow lane of the Australian economy," it says.
If the exclusion is not granted, ACCI will push for the chance to put the case to FWA that only part of the increase be passed on.
While the federal government submission encourages the review panel to consider industry-specific factors leading to pay inequities, it upholds a social safety net allowing low-income workers to "share fairly" in Australia's economic prosperity.
Ian Harper of Deloitte Access Economics and the former chairman of John Howard's Australian Fair Pay Commission also expressed concern with the ACCI bid.
"You can't have two classes of citizens," he told The Weekend Australian.
Professor Harper said the minimum wage should remain universal but the two-speed economy meant it would "make sense" to tailor other minimum award wage increases to particular industries.
ACCI justifies the special exclusion by arguing the cost impact of the carbon tax will add an extra burden to businesses already struggling under the weight of the high Australian dollar imposed by the resources boom.
Its proposal is substantially lower than the $26 a week increase proposed by the ACTU.
The Australian Industry Group is proposing that the minimum wage be increased by $14 along with other award minimum wages, lifting the lowest-paid workers from a pay packet of $589 a week to $603 a week.
It said the ACTU claim was "excessive and unsustainable".
"If granted, it would hurt the low-paid workers who the case is designed to assist, through threatening the jobs of existing workers and reducing employment opportunities for those looking for work," said Stephen Smith, the director national workplace relations for AI Group.
http://www.theaustralian.com.au/national-affairs/struggling-businesses-push-for-deal-on-wages/story-fn59niix-1226302120979
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