Minimum Wage Debate in Australia

MINIMUM WAGE DEBATE IN AUSTRALIA

Table of Contents
1.0 Issue...........................................................................................................................................3
1.1 Identification of Key Stakeholders........................................................................................3
1.2 Explanation of Perspective of Stakeholders...........................................................................3
2.0 Analysis of Issue........................................................................................................................5
2.1 Analysis of the Issue faced by the Stakeholders....................................................................5
2.2 Analysis of Triple Bottom Line (TBL) Approach.................................................................5
3.0 Criticism of the issue: Submission for Consideration of Minimum Wage Review..................7
3.1 Recommendation...................................................................................................................7
3.2 Justification............................................................................................................................7
3.3 Criticism for Position.............................................................................................................7
References........................................................................................................................................8
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1.0 Issue
1.1 Identification of Key Stakeholders
The concept of offering a standardized minimum wage to the workers was centred at improving
their standard of life. However, with the passage of time, the intention behind this concept is no
longer the same. In the present time, the decision regarding minimum wage margin is made by
the panel of expert dominated by the economists. The outcome shows that the margin of
minimum wage system in Australia has fallen drastically, which no longer supports the working
family members to come over the poverty lines. Moreover, the data of 2018 reveals that a review
conducted by ACTU (The Australian Council of Trade Unions) on the Australian minimum
wage system highlights that the workers require at least a hike of $45 per week (ACTU
Australian Unions, 2018). On the other hand, the employers and the business group segment
have argued to the latter statement and stated of raising the margin only by $ 10.10 per week.
1.2 Explanation of Perspective of Stakeholders
It has been observed that since the year 1998, the minimum wage rate in Australia had fallen
beneath the broadly accepted poverty line of 60% of average earning (ACTU Australian Unions,
2018). On the other hand, data received from ‘Trading Economics' shows that the region and its
workers have enjoyed 26 years of uninterrupted growth in the economy, which merely can leave
any of its workers in the poverty line (Tradingeconomics.com, 2018). The Fair Work
Commission had enhanced the Australian minimum wage rate by 3.5% to AU $719.2 per week.
The 3.5% rise is well beyond the 1.9% of the inflation rate, signifying that the workers in the
Australian market had genuinely experienced a growth of 1.6% in their minimum wage earning
figure. In 2018, the figure had reached a hike of AU $ 719.20 per week, which specifically
represent the efforts and benefits the employers are showing towards their workers in terms of
improving their spending capacity and lifestyle as a whole. However, despite a gradual rise in the
rate, the workers have not managed to come over the poverty line (Fwc.gov.au, 2019).
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