Wage Wars: The Struggle for Fair Pay in Post-COVID Australia

In a significant development for Australia's lowest-paid workers, the Fair Work Commission announced a 3.5% wage increase last Tuesday following its annual review. Despite this increase, a large segment of Australia's workforce still finds itself earning less than they did prior to the inflationary challenges posed by the post-COVID economy.

Although the wage rise may offer some relief, real wages have failed to keep pace with inflation, largely due to a deliberate policy stance aimed at taming persistent inflation rates. Currently, inflation measures remain a focal concern for economic agencies, with rates having peaked at between 6.5% and 9.6% in recent years.

The Commission is considering long-term strategies for wage growth by potentially phasing out low-paid job classifications. This move aims to elevate the base wage rates and counter the trend of real wage declines, as attention shifts towards more equitable pay practices across industries.

(With inputs from agencies.)