Call the HACSU Helpline
1300 88 00 32

more info

Autumn 2004

New data fuels 'working poor' Fears: 60,000 people can't afford food

Fears of a US-style massive ‘working poor’; population in Australia are being fuelled by new ABS data showing that around 60,000 Australians in low income working families are forced to go without meals and over half a million are unable to pay their bills on time.

The release of new Australian Bureau of Statistics data shows Australia developing a huge population of working poor.

The data reveals a disturbingly high level of financial pressure among 'working poor' Australians -- families whose main source of income is wages and who are surviving on a gross income, including benefits, of less than $569 a week ($29,600 a year).

The data shows:

• 59,000 people went without meals;
• 95,000 people were forced to pawn or sell something because they needed cash;
• 36,000 were unable to heat their homes;
• 89,000 sought help from charities and welfare organizations;
• 537,000 -- more than half a million people -- were unable to pay their electricity, gas or phone bills on time;
• Overall, 810,000 working families experienced a cash-flow problem in the past year.

ACTU Secretary, Greg Combet, said the data shows that having a job is no longer a guarantee against poverty and hardship.

"This is a wake-up call for employer groups and the Federal Government, who are opposing the ACTU claim for a $26.60 a week pay rise for low paid employees."

"The ACTU submission supporting their safety net wage claim also contrasts the big rise in company profits in recent years with the relatively poor wage gains by low paid workers."

"Profits in industries reliant on award workers such as hospitality and retail have risen up to ten times faster than wages," Greg Combet said.

"In its submission to the AIRC, the Department of Employment tried to downplay the big rise in company profits but was contradicted by Treasurer Peter Costello who stated last week that profits are 'now the highest ever recorded in Australian history.'

"It is appalling to think that low paid workers as well as their families and children are going without meals and yet the Federal Department of Employment would stoop to using misleading evidence so as to deny working families a decent pay rise."

"The Government can't have it both ways -- one day telling the AIRC that profits are low and employment will suffer if wages rise while the next day telling the public that profits are high and that jobs growth is good."

"Our economy is growing very strongly and if ever there was a time for the lowest paid Australians to get a decent wage rise now is it. The minimum wage is currently only $448.40 a week -- around $180 below the minimum a family of four needs for a modest lifestyle."

Financial Stress among Working Poor Families

EXTRACT FROM ACTU MINIMUM WAGES CASE SUBMISSION

Financial Stress Indicators: person in households whose principal source of income is employee income (a) (total household income under $569 a week - first two quintiles)

Financial Stress Indicators

Unable to raise $2,000 within a week for something important 574 000 persons

Types of cash flow problems in last 12 months(c)