Increase to minimum wage for adult workers

28/8/94

The minimum wage for adult workers in Western Australia is to be increased by $25.60 to $301.10.

Labour Relations Minister Graham Kierath said this was the first time in history that the minimum wage had been set by the Minister under an Act of Parliament.

The new minimum wage would affect about 6,600 full-time adult workers and 7,000 juniors who were tied to the minimum wage in WA.

"I do not agree with the rationale the Industrial Relations Commission used to reach its recommendation to me to increase the minimum wage, but instead of going back to the Commission and starting an academic argument over the issue, I have agreed that $300 is a fair and reasonable rate," Mr Kierath said.

"I have added an extra $1.10 for the CPI increase for the June quarter."

The Minister said the Industrial Relations Commission had pointed out when it refused to make a determination on the minimum wage in July, 1993 that it had difficulty in determining a social wage for an average employee.

"As the minimum wage for the first time ever is enshrined in legislation, it is important that the method of setting it has an entirely new approach," he said.

"Under our legislation, the minimum wage underpins all wages - whether under existing awards, workplace agreements or for the 100,000-plus WA workers who have no award.

"So that future minimum wage determinations can be made on a more logical basis, a leading independent industrial relations specialist, Professor David Plowman (head of the Graduate School of Management UWA), has been appointed to conduct a total review of the way the wage is set.

"He will make recommendations to Government within three months."

Mr Kierath said Professor Plowman would review the history of past determinations, whether what was required was a needs-based wage, social wage, basic wage or a minimum wage reflecting the capacity of industry to pay and the correct mechanism for its adjustment.

It was disappointing that the union movement had turned the minimum wage into a political football.

"The unions claimed the announcement was being delayed to coincide with the Helena by-election," the Minister said.

"I announced on July 23 this year that I would make the announcement within a month, well before Gordon Hill decided to abandon his electorate."

Media contact:  Brian Coulter 222 9595 / 481 2133