{"id":62119,"date":"2025-05-22T13:11:07","date_gmt":"2025-05-22T03:11:07","guid":{"rendered":"https:\/\/development.uwu.org.au\/staging\/?p=62119"},"modified":"2025-07-29T18:33:00","modified_gmt":"2025-07-29T08:33:00","slug":"uwu-asks-for-4-5-per-cent-increase-to-minimum-and-award-wages","status":"publish","type":"post","link":"https:\/\/development.uwu.org.au\/staging\/articles\/uwu-asks-for-4-5-per-cent-increase-to-minimum-and-award-wages\/","title":{"rendered":"UWU CALLS FOR 4.5% AWARD WAGE INCREASE"},"content":{"rendered":"\t\t
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Each year in June, the Fair Work Commission (FWC) reviews minimum and award wages to decide whether they should be increased. United Workers Union (UWU) member stories inform this decision. The Albanese government says an increase should not be below 3 per cent \u2013 UWU says it should be at least 4.5 per cent.<\/strong><\/p>

In the lead-up to the FWC\u2019s annual Minimum Wage Review, UWU makes its annual submission to the FWC to push for a decent wage increase for our members.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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First, we reach out to our members and ask for your experiences with the cost of living, and whether your wages are enough to cover everyday costs. We compile your stories and add them to our own research on the current economic climate, so we can see the whole picture.<\/p>

We look at inflation rates and trends and assess whether wages are keeping up \u2013 we call this \u2018real wage growth\u2019. We add all this information to our submission to FWC\u2019s Minimum Wage Review to advocate strongly for a realistic \u2013 and highest possible \u2013 wage increase.<\/p>

The Minimum Wage Review is approaching and we\u2019re making sure your voices are heard\u00a0<\/b><\/h5>

In a cost-of-living crisis, it\u2019s even more important for UWU members to tell our stories about how a wage increase would improve everyday living.\u00a0\u00a0<\/p>

We\u2019re all feeling the pinch of wages rising too slowly, but especially those of us on minimum award wages. When UWU members share real-life stories, it helps the FWC understand wages from a worker\u2019s perspective.\u00a0\u00a0<\/p>

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Martin\u2019s story:<\/strong> Martin is a food process worker. He\u2019s paid $24.98 p\/hr at level 3 under the Food, Beverage and Tabacco Manufacturing Award 2020.<\/p>

\u201cThe wages barely keep up with the cost of living: living expenses have skyrocketed in recent times, particularly energy bills\u2026 We just had to pay over $200 for an energy bill \u2026our wage is just not enough: Minimum award wages are impossible for people trying to keep up with the cost of living.\u201d<\/em><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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\u00a0<\/p>

If you\u2019re interested in finding out more this year\u2019s review, our 2025 submission can be found here<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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How does the Minimum Wage Review work?<\/h5>

The FWC seeks submissions each year from unions, government and industry groups to put their cases forward. Unsurprisingly, employers usually argue against increasing wages. So, for the best chance of a wage increase, we amplify UWU member voices and make sure our submission is strong and convincing. Minimum and award wage increases are important for all workers, because they act as the base line for all other wages.<\/p>

The FWC announces its decision in June and the increase (if there is one) begins on the 1st July each year. Last year, we won a 3.75 per cent increase, which meant an extra $33 in the pocket of minimum wage earners each week. This year, we\u2019re asking for a 4.5 per cent increase.<\/strong><\/p>

What United Workers Union members say<\/h5>

UWU argues each year for an award wage increase to ensure:<\/p>

  1. that wages keep up with inflation and the cost of living,<\/li>
  2. that workers\u2019 skills and experience are recognised and rewarded.<\/li><\/ol>

    Members\u2019 voices are the backbone of our yearly submission to the FWC minimum and award wage review.<\/p>

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    Lorraine\u2019s story:<\/strong> Lorraine works part-time for $32.14 per hour under the Aged Care Award 2010.<\/p>

    \u201cIt is really difficult to live off this kind of income. I put aside $200 per fortnight just to pay for gas and electricity and even then, I\u2019m still catching up on things so that they\u2019re not overdue. An award increase could potentially cover some of my petrol costs, so I could put more money towards food or other activities.\u201d<\/em><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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    \u00a0<\/p>

    Currently, less than 2 per cent of Australians work for minimum award wages, but\u202fUWU\u2019s National President Jo Schofield says\u202fthis number is growing.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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    \u201cThe overall number of workers in the economy who rely on the minimum wage has increased over recent years \u2013 meaning more and more workers are working for the bare minimum standard of wages and conditions that are set in an award,\u201d she explains.<\/p>

    If you\u2019re on the bare minimum, we believe is should be at least enough to live on. Australia is a wealthy country and our wages should reflect that. Anybody who works full-time should be able to earn enough to cover rent or mortgage, food and bills \u2013 at the very least.<\/p>

    UWU members are sending a strong message to the FWC that wages need to increase.<\/p>

    What employers say<\/h4>

    Most employers want to freeze award wages.<\/p>

    This year, the Australian Chamber of Commerce and Industry (ACCI) is warning against an increase of more than 2.5 per cent. They say a higher increase would hurt the jobs market because employers won\u2019t want to spend on hiring more staff. You can read the ACCI\u2019s submission here.<\/a><\/p>

    Former Assistant Secretary of the ACTU Tim Lyons, has been through a lot of FWC reviews.<\/p>

    \u201cWhat it involves is essentially an argument between the trade unions with a few allies \u2013 largely from the welfare sector \u2013 against everybody else, about whether to increase minimum wage.\u201d<\/p>

    \u201cEmployer arguments are normally \u2018if the minimum wage increases, there will be a massive increase in unemployment\u2019. It\u2019s never happened.<\/p>

    \u201cThey\u2019ve said it would cause \u2018cost-push inflation\u2019, when employers pass on the cost of increased wages to consumers. It\u2019s never happened.<\/p>

    \u201cIf you increased the minimum wage by 50 per cent, you would certainly see a consumer effect. But if we\u2019re talking about increasing the minimum wage \u2013 even by 7 or 8 per cent \u2013 you won\u2019t see anything,\u201d Tim explains.<\/p>

    Unions compile hundreds of pages of expert evidence every year to show why we need an increase in wages. But, FWC Commissioners listen more closely when unions can say we speak for millions of workers.<\/p>

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    Sarah\u2019s story:<\/strong> Sarah is a cleaner, employed as a casual under the Cleaning Services Award 2020. Her rate is $32.25 per hour.<\/p>

    \u201cBy the time I get paid and all my bills come out I have $200 left for groceries and petrol. It\u2019s crazy. Plus, my rent is about to go up \u2026 my husband and I, we used to go out for meals occasionally or go for a drive, but the price of petrol and food costs a fortune, so we just can\u2019t do it anymore\u2026 An increase would make heaps of difference \u2026 I\u2019d like to buy a house someday, but I know I can\u2019t because I\u2019m casual, and I can\u2019t get a home loan or save up for a deposit.\u201d<\/em><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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    \u00a0<\/p>

    Can you relate to Sarah\u2019s story? Awards cover about 100 industries and around 3 million workers in Australia. Numbers and people power really do matter. The more voices that are heard, the stronger our chance of winning pay increases. If you\u2019re not a member, it\u2019s\u202ftime to join. <\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Join our mailing list<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Sign up below to here more about how our union advocates for, and takes action with working people in Australia.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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