The first wage case judged by the Fair Pay Commission has seen a sizeable increase in the minimum wage for Australia. While business groups might be licking their wounds, the Coalition is celebrating what will surely be yet another valuable weapon in their arsenal to combat Labor in the Industrial Relations battlefield.
I personally believe that we should fix the minimum wage as it currently stands, and then adjust for inflation annually. The Government should then focus on programs that enable minimum wage workers to up skill and improve their earning capabilities - the minimum wage should be a stepping stone, not a plateau. Full time workers on the minimum wage with a family to support should be particularly focused upon - especially if they are the primary wage earner. A low minimum wage would allow business to create jobs easily, providing young Australians and students the unskilled casual and part time employment that suits their life style and commitment. Full time minimum wage earners should be provided with added incentive to move beyond the initial stepping stone of minimum wage unskilled labour.
What is most interesting about this development is that it further degrades the Labor and Union scare campaign about Industrial Relations. The election is still at least six months away, and if jobs continue increasing the average Australian is going to be a lot more sceptical about buying the Labor scare campaign. It is difficult to convince the electorate that this legislation is so bad when all the signs are so good. No mass sackings, no decreased wages - instead increasing wages, increasing job opportunities and few legitimate scandals. Labor may even find itself defending its scare campaign in the light of nothing but positive results from Work Choices.
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