Unions push to increase state minimum wage

Unions WA wants the state's minimum wage to be increased by 7 per cent but businesses say that would cripple small cafes, shops and restaurants.

Yesterday, the Commerce Minister Simon O'Brien announced he was recommending an increase in line with the Consumer Price Index to the Industrial Relations Commission, which sets the figure.

At the budget's mid-year review in December, the CPI was 3.5 per cent.

Unions WA secretary Simone McGurk says simply increasing the wage in line with the CPI will not be enough.

"Electricity's up 57 per cent, rents are up 25 per cent and education costs are up 28 per cent," she said.

"For people on the minimum wage they don't have a lot of discretionary income, these sort of basic cost of living increases hit them really hard, and that's why we'll be going after a 7 per cent increase for minimum wage earners."

Ms McGurk wants to see an increase of $42.50 a week.

The Chamber of Commerce and Industry says the push is irresponsible and would cripple small business.

The chamber's Marcia Kuhne says a flat rate increase of $11 per week is more appropriate.

"The sort of businesses that are subject to the state wage decision are small, in fact they're small shops, they're small cafes and restaurants," she said.

"The owners have their houses on the line quite often and they just can't afford more than a very moderate wage increase."

Most workers are covered by the federal minimum wage but there are a number of people who fall under the state award.

These include workers at some small businesses.

The Industrial Relations Commission must make its decision before July 1.

Source: ABC News, 16 May 2012