Politicians' pay rise:
Labour leaders demand Living Wage

by Peter Mac

Federal politicians have been offered a ten percent increase in salaries to 
start the new year. The increases were recommended by Federal Parliament's 
Remuneration Tribunal recently on the basis that politicians' salaries have 
not risen since the last increase three years ago.

The Tribunal consistently recommends pay rises to compensate politicians 
for rises in the cost of living. Until recently this was done by linking 
their salaries to those of senior public servants. They are now linked to 
the average wage.

The recommendations are certain to be accepted by the government. Finance 
Minister John Fahey described increase as "sensible and moderate". However, 
the same compensation has not been offered to working people.

The South Australian State President of the Australian Manufacturing 
Workers' Union, Ian Curry, described the Howard Government's acceptance of 
the recommendations as "an act of blatant hypocrisy", because of its 
refusal to grant safety net increases to the working poor, as well as its 
encouragement to employers to be more aggressive in attacking workers' 
wages and conditions.

In the light of the proposed pay rises for politicians, ACTU President 
Jennie George has now challenged the Federal Government to accept the 
ACTU's Living Wage claim of a $24 per week increase in the minimum wage.

Ms George said that over the last three years the lowest paid workers have 
received a total increase in wages of only $30 per week. In comparison, the 
proposed wage increase of a back-bench politician would be $150 per week, 
with Ministers receiving far more.

The Prime Ministers' salary will rise by some $554 per week, approximately 
23 times the increases received by the lowest paid workers.

Ms George also pointed out that the rise in politicians' salaries will 
actually be greater than appears at first sight. She noted:

"... politicians on salaries of $1,800 per week will get a huge income tax 
cut from 1 July 2000 under the Howard/Costello GST package, whereas the 
corresponding income tax for battlers on $400-$600 per week does not even 
cover bracket creep since 1993.

"All politicians should support the ACTU $24 Living Wage claim for low-paid 
workers, or stand condemned for blatant double standards."