Thursday 16 June 2022 04:37 AM Why millions of Australians are suffering a pay cut despite a big rise in the ... trends now
Millions of low-paid Australian workers on award wages and apprenticeships will suffer a pay cut despite the biggest minimum pay increase in 16 years.
Australia's unemployment rate in May stayed at 3.9 per cent for the third straight month - holding at the lowest level since August 1974.
But experts fear rising inflation will see unemployment rise later this year as the Reserve Bank of Australia was forced to put up interest rates.
The Fair Work Commission on Wednesday awarded a 5.2 per cent increase in the minimum wage - the biggest jump since 2006 during the mining boom.
Millions of low-paid Australian workers on award wages and apprenticeships are set to suffer a pay cut despite the biggest minimum wage increase in 16 years (pictured are flight attendants at Sydney airport)
The pay increase was slightly above the 5.1 per cent inflation rate but it only directly benefits 180,000 employees from July 1.
Another 2.5 million workers on award wages are only receiving a 4.6 per cent rise, as are Australia's 191,000 apprentices.
Their pay increases lag behind inflation, which means they are effectively suffering a cut in real wages.
Like those on the minimum wage, workers on modern awards will get a $40 a week pay boost if they earn more than $869.60 a week.
Commonwealth Bank senior economist Belinda Allen calculated the Fair Work Commission decision, covering 2.7 million minimum wage and award workers, was likely to boost low-paid wages by up to 4.8 per cent - a level below inflation.
Australia's 191,000 apprentices are also missing out with their wages going up by 4.6 per cent or $20.69 a week.
Their wages are going up at half the $40 a week pace those on the minimum wage and awards will be getting.
From July 1, a first-year apprentice electrician will be getting 57.9 per cent of the $42,255 minimum wage, meaning a salary of just $24,466.
Electrical Trades Union acting national secretary Michael Wright said Australia would continue to suffer from a shortage of electricians because of the Fair Work Commission ruling, as just half of apprentices completed their training.
'Thanks to this decision you earn more working two weekend penalty rate shifts on minimum wage than you do for a full week as an apprentice,' he said.
'No wonder our completion rates are a disgrace, young workers are having to quit their trade just to make ends meet.
The Fair Work Commission on Wednesday awarded a 5.2 per cent increase in the minimum wage - the biggest jump since 2006 during the mining boom. But another 2.5 million
