Attached is the submission (and associated media release) by the HR Nicholls Society to the Fair Work Commission, to which I made a major contribution, arguing that the minimum wage should not be increased and should, in fact, be scrapped. The submission argues that, in circumstances where Australia’s weekly minimum wage is already about equivalent to half of average earnings and is the highest nationally mandated minimum wage in the world, further increases are unnecessary and are likely to have adverse effects on the employment of unskilled or lesser skilled workers. It also argues that the minimum wage is both ineffective and inefficient as a welfare measure to assist low wage earners.
As pointed out in the submission, the minimum wage is the bedrock of the wages system and the arguments advanced in favour of it reflect the belief held by some that Australia must have detailed regulations applying to relations between employers and employers. This rejection of a market-determined system is based on the totally false belief in the notion that there is an imbalance of bargaining power between employers and employees. The very large number of employers in Australia prevents the establishment of a monopoly position by them and employees are readily able to change jobs if they are dissatisfied with their existing one. In fact large numbers of employees change jobs voluntarily each year.
The existing regulatory arrangements are not only unnecessary: as with the minimum wage they act as a deterrent to employment.
Des Moore