Australia’s Fair Work Commission last week ordered a 2.5% pay increase through an annual minimum wage case.

The pay rise will raise the annual minimum wage to AUD 40,175.20 and the hourly rate to AUD 20.33 and will also flow through to those who are award-dependent, lifting the wages of one in four workers. However, the Commission has delayed the increase for hard-hit sectors such as aviation, fitness, tourism and parts of retail and events until 1 November and for the bulk of the retail sector until 1 September.

The Australian Council of Trade Unions stated, “This is doubly disappointing as a large proportion of workers who will benefit from this pay increase are those whose roles have been essential throughout the pandemic.”

The 2.5% increase is higher than anything supported by either the Federal Government or employer groups, the Council stated.

According to the Fair Work Commission’s president, Iain Ross, the panel had decided the “markedly better” economic climate this year warranted the pay rise. Ross said the decision to stagger the pay rise was an acknowledgement that there were still economic risks linked to the pandemic, including the slow pace of the vaccine rollout and more domestic outbreaks.

“We are satisfied that the operative dates we have determined are justified, consistent with the statutory framework and strike an appropriate balance between the interest of employers and employees,” Ross told The Guardian.

Unions had sought a 3.5% increase while employer groups, including the Australian Industry Group and the Australian Chamber of Commerce and Industry, had backed for a 1.1% rise.

ACTU Secretary Sally McManus, said, “This wage increase has come about because of unions, the Morrison Government and big business wanted pay cuts or freezes. However, it is extremely disappointing that the Commission has delayed increases for any workers – but especially those who have worked throughout the pandemic and whose employers have posted record profits. “

“The Federal Government needs to change their policies that are keeping wages low by supporting pay increases for their own workers, supporting more secure jobs and changing laws to restore bargaining power to workers,” McManus said.