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Newcastle Herald
Newcastle Herald
National
Ethan Hamilton

Hunter minimum wage workers say increase 'enough to get by' while business and union divided

Prime Minister Anthony Albanese addresses wage increase, national energy emergency | June 15, 2022 | ACM

LOW income earners in the Hunter say recent wage increases are "just enough to get by", while union and business voices in the region are split over the decision.

Disability support worker Mel Watson said wage rises announced by the Fair Work Commission will put around $30 in her pocket per week.

"It won't take a great deal of stress off my shoulders but it really just lets me keep up with the cost of living which we have been falling behind for months," Ms Watson said. "It takes the guilt away when I'm putting fuel in the car and know that this week I need to buy groceries."

The 52-year-old has been a support worker for eight years, having been in aged care for 15.

Currently caring for her two-year-old grandchild, Ms Watson said the last few months are some of the hardest she had seen.

"I can go without most of the time but [the child] can't," Ms Watson said. "It's about being able to put meat and veg on the table and not have to rely on packet noodles. Buying things like medicine is so important but it takes up a large part of my income.

"I've spoken with people at work about choosing between paying the mortgage or putting food on the table. This announcement helps but there's a long way to go."

Hunter Workers secretary Leigh Shears. Picture Marina Neil
Mel Watson

On Wednesday, the commission announced an increase to the national minimum wage (NMW) by 5.2 per cent, or around $40 per week, from July 1.

On top of the NMW decision, award wages will increase 4.6 per cent for those earning more than $869.90 per week and $40 for those below that threshold.

The commission said its decision to provide a proportionately higher increase to low-paid employees was to provide a "greater level of support to the low paid while seeking to constrain inflationary pressures".

"Today recognises that there are real cost of living pressures especially for those people on minimum wage," Hunter Workers secretary Leigh Shears said. "The decision today for a 5.2 per cent increase is a good win for the trade union movement but more importantly for those 2.6 million workers who rely on awards.

"The increase may not be windfall for many workers but at the very least it will allow them to keep up with the cost of living in the short term."

However, the commission said due to "exceptional circumstances" the awards for aviation, tourism and hospitality would not be increase until October 1.

"The only real disappointment out of today's decision is that workers in some sectors, aviation and hospitality specifically, will need to wait months to see a wage increase," Mr Shears said. "While it was hard during COVID, the circumstances for those industries has significantly improved and workers deserve to be rewarded. When you look at airports you have queues running out the doors at the moment."

Business Hunter chief executive Bob Hawes acknowledged the delay to October will give these sectors some breathing space amid "economic pressures that are not abating".

Mr Hawes said the overall wage rises will add to the worries of business owners.

"This increase is going to take the wind out of the sails of business owners that are already experiencing a tightening of margins and I hope it doesn't result in the shedding of labour," Mr Hawes said.

He anticipated some prices to rise and said he hopes workers "get relief from cost of living pressures but also spend on local businesses to cushion the blow".

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