Whenever inflation begins to rise, the desire to blame wage rises is an itch that employer groups and those who represent them in politics and the media cannot resist scratching. The Fair Work Commission decision on Wednesday to increase the minimum wage by 5.2% has once again seen employers suggests dark days ahead. And yet for workers, inflation has been anything other than good.
Perhaps less than six months ago the thought that the Fair Work Commission would increase the minimum wage from $20.33 an hour to $21.38 – a 5.2% increase (technically 5.16%) – would have been unthinkable. It is the biggest increase since 1991 and more than double the 2.5% increase last year.
