WA state minimum wage increased
The State Industrial Relations Commission has ruled WA's minimum wage be increased by just over $20 a week.
Business groups were advocating for an $11 a week rise while unions submitted that a $42 a week rise would be appropriate.
The commission has awarded a 3.4 per cent increase which takes the minimum wage to $627.70.
Chief commissioner Anthony Beech says there were a number of competing needs to factor into the decision.
"We consider an increase to the WA minimum wage greater than the national average is warranted," he said.
"We are acutely conscious that we must balance the considerations of the capacity of the employers to pay with the need for the WA minimum wage to meet the needs of the low paid."
Mr Beech says there were a number of reasons why the increase is $3.50 more than the national minimum wage which was set earlier this month.
"WA's annual CPI is greater than national, its unemployment rate is lower, male and female participation rates are higher, its youth unemployment rate is lower, and its wage price index and average weekly earnings are higher than nationally," he said.
Unions WA has described the wage rise as out of touch.
Secretary Simone McGurk says it falls well short of the increase the unions were asking for.
"If you look at what's happening with the rising cost of living, what's happening with utility prices, rents, and across the board cost of living increases for minimum wage workers, there's incredible pressure on those workers," she said.
"These are people in full-time work who are still having trouble paying heating bills, renting a house or even putting food on the table."
The Chamber of Commerce and Industry's James Pearson says the increase will make it tough on small businesses.
"It's very hard to pass on the increased prices to customers so they'll have to absorb the cost," he said.
"Today's decision actually is twice the amount of money small business would have been able to afford.
The problem is they can't pass the costs on because things are really tight in small business and retail Western Australia, so at the end of the working week it means a lot of battler business will be taking home less money for their families."
Most workers are covered by the federal minimum wage but there are a number of people who fall under the state award, including those at shops, cafes, restaurants, and other small businesses.
The increase of $20.60, which covers around 28,000 workers, comes into effect from July 1.
Source: ABC News, 11 June 2012
