Kochie warns Jim Chalmers raising the minimum wage will cause inflation to soar trends now
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Treasurer Jim Chalmers has clashed with Sunrise host David Koch over union calls to raise wages by seven per cent amid fears it could send inflation soaring.
The ACTU is demanding the Fair Work Commission boost the minimum wage by seven per cent to keep pace with inflation in its next review in June.
But one Sydney cafe boss who is already battling increased costs including a 17 per cent hike in electricity bills has warned the move could cost jobs if it's implemented.
Kochie demanded to know if the Treasurer backed the union call and if he was worried it could spark a wage spiral that would cause further inflation.
But Dr Chalmers has hit back branding the claims 'absolute rubbish' and insisted pay rises for Australia's low paid workers were not behind the current cost of living crisis.
Treasurer Jim Chalmers has clashed with Sunrise host David Koch over union calls to raise wages by seven per cent amid fears it could send inflation soaring
'How do you explain to unions that it can't go for a seven per cent minimum wage increase?' asked Koch on Thursday.
'Inflation is coming down - inflation could be two or three per cent in October, and a seven per cent increase in the minimum wage would just fuel inflation.
'You'll have a wage spiral that the Reserve Bank's warning against.'
Dr Chalmers insisted the government would not be recommending a particular figure but admitted they were keen to see the low paid receive a 'meaningful' rise.
'That's one of our highest economic priorities,' he said. 'It's just common sense to begin with the lowest paid Australians who have missed out for a really long time.
'If you made a list of all of the things that are giving us this inflation challenge in our
