WAGE RISE NEEDED IN TOUGH TIMES

Date: 13 July 2009

A wage rise for the State's low paid workers will be good for the economy.

Lifting the minimum wage is good for economic demand and job creation, according to expert evidence presented today on behalf of Unions NSW at the State Wage Case.

The state's peak union body has begun presenting its case for a 3.8 per cent wage increase, a direct benefit to more than 240,000 of NSW's lowest paid workers.

"A modest wage rise for the state's lowest paid workers is both fair and wise in the current circumstances," Unions NSW Secretary Mark Lennon said.

"All the economic evidence shows that workers on the minimum wage spend a greater chunk of their overall pay, so if their pay is increased, it spurs further employment."

A report prepared by the economic consultants, BIS Shrapnel supports the argument for a pay rise.

The report finds the main factor employers consider when deciding whether to employ staff is demand for their goods and services, not the wage levels of low paid workers.

"The work by BIS Shrapnel shatters the argument about suppressing wages to encourage employment," Mr Lennon said.

"Race to the bottom economics is dead and the State Wage Case offers the low paid some hope, after they were cruelly denied a well deserved pay rise in last week's Fair Pay Commission decision."

For further comment:
Mark Lennon - Secretary, Unions NSW 0427 231 800

For further information

Contact:	Nick Lucchinelli
Union:	Unions NSW
Phone:	0422 229 032
Email:	nick@unionsnsw.org.au
WWW:	unionsnsw.org.au

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