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‘Double whammy’ minimum pay rise ‘could trigger a wages spiral’

David Marin-Guzman

The workplace umpire will consider giving the lowest-paid workers an extra increase this year on top of the general minimum wage rise, which employers warned could trigger spiralling pay demands for higher-skilled jobs and make inflation worse.

The Australian Council of Trade Unions is calling for a 5 per cent rise to cope with inflation, but the Fair Work Commission’s wage panel has flagged that it also wants to consider phasing out the lowest minimum rate, which would effectively grant about 200,000 workers an additional 3.6 per cent increase.

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