The Western Australian Council of Social Service (WACOSS) considers the minimum wage to be a vital means of protecting low-income workers from poverty. An adequate and appropriate minimum wage supports a decent standard of living for working people and their families. As the minimum wage helps to ensure a fair and inclusive economy where all can contribute and thrive, it also delivers economic benefit to the wider Western Australian community. Â As the peak body for the community services sector in WA and an advocate for people experiencing marginalisation, disadvantage and hardship, WACOSS has a particular interest in the adequacy of living standards and quality of life experienced by Western Australians on low incomes.
WACOSS’s submission to the 2024 State Wage Case relies on the provisions in the Industrial Relations Act 1979, at Clause 50A(3)(a) for the Commission to consider in its determination of minimum rates of pay the need to:
- ensure that Western Australians have a system of fair wages and conditions of employment; and
- meet the needs of the low paid; and
- provide fair wage standards in the context of living standards generally prevailing in the community; and
- contribute to improved living standards for employees; and
- protect employees who may be unable to reach an industrial agreement; and
- encourage ongoing skills development; and
- provide equal remuneration for men and women for work of equal or comparable value.[1]
In preparing this submission, WACOSS has carefully considered the health of the wider economy and the changing economic and work environment for low-waged workers. Our submission presents a contemporary argument for raising the State Minimum Wage that considers the latest research and the lived experience of minimum wage workers in WA. Our submission aims to provide the Commission with the best available data and analysis upon which to base its deliberations.
WACOSS’s Claim
WACOSS submits that an increase to the State Minimum Wage rate of 7.359 per cent is essential to meet the needs of the low paid and to contribute to improved living standards for employees.
The WA economy has the capacity to sustain an increase to the State Minimum Wage rate of 7.359 per cent. The WA Budget is conservatively projecting surplus, the economy has continued the solid growth of the previous two years and the export market remains strong. Business profit levels have recovered from the impacts of the COVID-19 pandemic. Further, there is strong evidence that even a significant increase to the State Minimum Wage rate would not increase inflation or lead to price-wage spiral.
Despite WA’s strong economy, inequality in the state continues to rise. Heavy cost of living pressures, and slow wage growth has placed significant financial stress on low paid workers in WA. An increase in the Minimum Wage of 7.359 per cent is necessary to ensure low-waged workers can meet the cost of essentials, regain their economic resilience and maintain a reasonable standard of living.
Increased costs have caused low income families to adapt their living standards to try to meet their basic needs. WA is now seeing paid workers in crisis – accessing emergency relief supports, not using electricity to heat or cool their homes, and skipping meals. Cost increases and pressures have been felt in all regions of WA.
Behavioural changes adopted by low income workers increase inequity across a range of social determinants of health – including quality nutrition, connectedness to community, access to power and housing, and basic hygiene. Unmet needs lead to increased adverse mental and physical health outcomes, which in turn lead to increased financial pressure, and more unmet needs. Thus, the cycle of inequity is embedded.
The primary basis of WACOSS’s claim is that our proposed increase to the State Minimum Wage is both possible and necessary to reduce the significant inequity that exists in WA and support low-waged workers live in a connected, safe and productive life.
With clear evidence of Western Australians experiencing significant living cost pressures, WACOSS considers a 7.359 per cent or $63.54 per week increase to the State Minimum Wage to be essential in order to meet the needs of the low paid and to contribute to improved living standards for employees. Such an increase would bring the State Minimum Wage to $926.94 per week.