Employers in Australia warn against further minimum wage raise

Employers in Australia have warned against further wage increases after Australian opposition leader Anthony Albanese backed a 5.1% minimum wage raise to keep up with inflation. 

The Australian Industry Group (AI Group) urged the Fair Work Commission to adopt a “cautious approach in adjusting wages”, warning that “an excessive minimum wage increase would fuel inflation and lead to higher interest rates on mortgages, personal loans and credit cards than would otherwise be the case”, according to The Guardian. 

“Higher inflation and higher interest rates would have a particularly harsh impact on the low-paid,” said Ai Group’s chief executive, Innes Willox.

With inflation expected to reach 6% by the end of the year,  Australian Council of Trade Unions secretary, Sally McManus, has defended its bid for a 5.5% increase as “incredibly reasonable”.

READ: Australia trade union urges for hike in minimum wage

Despite warnings, the Australian Industry Group has raised its own submission for wage increases to the Fair Work Commission from 2% to 2.5%, while the Australian Chamber of Commerce and Industry has asked for low-paid workers to get a 3% rise.