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Autumn 2005

US Senate rejects minimum wage rise: No pay rise for 8 years

The ACTU has called on the Federal Government to rule out any shift to a US-style minimum wage system in light of reports that the United States Senate has this week voted to reject an increase in the US minimum wage which is only $5.15 an hour.

Commenting on the United States situation, ACTU President Sharan Burrow said "Millions of working Americans that rely on the minimum wage have missed out on a pay rise for the eighth year in a row because their wages are set by politicians instead of by an independent wages umpire' like Australia's.

On March 7, Sen. Edward Kennedy (Democrats - Massachusetts) moved to raise the US $5.15 an hour minimum wage by $2.10 over the next 26 months but lost the vote 46-49.

"I believe that anyone who works 40 hours a week, 52 weeks a year should not live in poverty in the richest country in the world," said Senator Kennedy.

The Employment Minister, Kevin Andrews and the Treasurer, Peter Costello have both recently said they are looking at a scheme where they would hand-pick people such as Government officials from Treasury or from the Reserve Bank to set minimum wages.

But the ACTU fears that this 'expert group' proposal is a back-door way of scrapping Australia's independent wages umpire and giving the Federal Government control over minimum wages.

The ACTU has written to the Prime Minister expressing its strong support for the current system of setting minimum wages that is politically independent.