Wage rise comes at good time for workers

The Fair Work Commission's decision to increase the minimum wage by 5.2 per cent from July 1 could not have come at a better time for south-west workers now guaranteed $812 a week or $21.38 an hour. While the percentage has been criticised by employers, the quantum is quite small. It is just $1 an hour more or an extra $40 a week.

For most, including the bosses arguing for any increase to be kept in the 2.5 to three per cent range, this is not much. It is the price of a pub meal or a good bottle of red. It wouldn't even buy a packet of cigarettes or a rump roast.

But it means a lot to those individuals and families on struggle street who will start receiving the money in two weeks or so. It is almost half a tank of fuel for a small car. It is the difference between leaving the heater off or being able to turn it on.

While the Prime Minister was slammed by his predecessor during the election for supporting a minimum wage increase that kept pace with inflation he was the one who was smiling on Wednesday.

There is no doubt his government's submission asking that the FWC "ensure that the real wages of low paid workers do not go backwards" had an influence on this outcome. So too did the ACTU's push for a 5.5 per cent increase in both the minimum wage and modern award minimum wages.

These were in stark contrast to the Australian Chamber of Commerce and Industry and the Australian Industry Group. The ACCI thought a three per cent increase - a cut in real wages of more than two per cent - would have been "balanced and responsible".

The Australian Industry Group, in what appears to be a "let them eat cake" moment, argued that the 0.5 per cent increase in superannuation to take effect on July 1, and the increase in the low and middle-income tax offset, is already going to boost the coffers of the 2.4 million Australians, two-thirds of whom are women, on the lowest wage tier.

It fears the 5.2 per cent increase in the minimum wage and the 4.6 per cent increase to modern award minimum wages will do workers more harm than good.

"[The increases] will fuel inflation and lead to even higher interest rates; even more hardship for people with mortgages, personal loans or credit card debts; and add substantially to the risk of unemployment or underemployment - particularly for unskilled employees," AI Group chief executive Innes Wilcox said.

While both the AIG the ACCI are correct when they say the increases are an additional burden for businesses still recovering from two years of COVID, and which are also battling rising interest, energy and materiel costs, many industries have bounced back strongly with profit increases far in excess of the rate of inflation.

Some haven't though and south-west industries like tourism and hospitaliy are hurting. To them, the decision is a blow.

But Wednesday's wage ruling was very much in the spirit of the 1907 Harvester Decision. The Arbitration Court, taking into account the cost of living, ruled that the minimum or basic wage for an unskilled worker should be sufficient for him to house, clothe and feed a wife and three children.

That principle has not changed in the 115 years that have passed since then.

The week started with three Warrnambool men receiving Order of Australia medals in the Queen's Birthday honours. Vietnam veteran Doug Heazlewood and brother Peter and Bob McMillan were deserving recipients for their incredible community service across decades. Congratulations to each of you.

The $70m redevelopment of the former Callaghan's site in Warrnambool's CBD appears to have been shelved with the site back on the market.

There are signs the hot property market is cooling a little. And in a win for workers, the first sod was turned on a new worker housing project at Koroit, one of many initiatives needed to ease the region's accommodation crisis.

Warrnambool timber and hardware store Pontings will celebrate its centenary next year and one man is hoping to capture all the names of past workers on an honour board. Can you help?

An era came to an end at Koroit with the town's former hospital demolished this week.

The Port Fairy Folk Festival announced some big names for next year's event before tickets went on sale.

Our story about Warrnambool sparky Bernie O'Keefe retiring after almost 60 years in the trade was well received.

Warrnambool's Alison Anderson is also retiring after 52 years running the farming business she and her late husband Andrew started. She will be selling 953 hectares, which is expected to be one of the city's biggest land sales in living memory.

The pic above, captured by photographer Chris Doheny, was one of many from Monday's Big Freeze initiative at Allansford, which raised an incredible amount of cash for the Fight MND cause.

Don't forget to check out some of the other stories that made headlines this week, below.

Until next week,

Greg Best, editor, The Standard