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Winter 2006

Tasmanian Industrial Commission Awards $20 Increase

The Tasmanian Industrial Commission recently handed down a decision on the State Wage Case. The Commission awarded a $20 per week increase to all award rates and increases the minimum wage in Tasmania to $504.40 per week.

The increase is effective from the first full pay period on or after 1 August, 2006.

However, under the Howard Government's 'Workchoices' legislation, the majority of Tasmanian workers may not receive this increase. The Howard Government wants to deny Tasmanian workers who are struggling to survive on the minimum wage an increase at the same time that the cost of living continues to rise and recent interest rate increases and higher petrol prices bite into workers' budgets.

The 'Workchoices' legislation attempts to override State awards and freeze all wage rates and conditions. The newly established 'Fair Pay' Commission has been given the responsibility to determine wage rates and will not hand down its first decision until some time in Spring this year.

Workers on the award rate will in effect have a wage freeze courtesy of the Howard Government. At the same time, Government-appointed members of the Fair Pay Commission received a 7% wage increase, as did all parliamentarians.

The industrial advocate for the Federal Government argued in the Tasmanian Commission that there should be no decision to increase rates until the 'Fair Pay' Commission had made a decision. This was fortunately rejected by the Commission, but underlines the fact that the Federal Government does not support a wage increase for the low-paid workers of Tasmania.

HACSU has written to all employers suggesting that they implement the Commission decision to increase award rates by $20 per week. Members should approach their employer to see if the increase will be paid.

There remains considerable uncertainty about how far-reaching the new 'Workchoices' legislation will be. There is currently a challenge to the legislation, lodged by the State Governments, under way in the High Court, and even once the High Court makes its decision it may still be difficult to determine which employers will be covered the Federal system.

HACSU believes that the increase should be paid to workers on award rates, as they have not had an increase for twelve months and the cost of living continues to rise.