Minimum wage hospitality workers facing a wage freeze

Australian hospitality workers may have their pay frozen for a year while struggling businesses try to get back on their feet.

The Fair Work Commission is looking into whether or not to delay or stagger pay rises, which would affect 2.2 million Australians on minimum wage.

The Commission is looking into staggering wage rises throughout 2021-22, with the hardest hit industries claiming the end of JobKeeper and delayed vaccine rollout is a good reason to delay or stagger the pay rise.

Up to 75% of workers in the accommodation, food services and tourism sectors have had to wait at least three months for a 1.75 per cent rise, with some not seeing a pay-rise for at least seven months.

The minimum wage is currently $753.80 per week, for a 38 hour week, or $19.84 per hour.

Industry leaders believe that employers who have already been economically affected by the pandemic, shouldn’t be forced to increase pay for a second time in five months.

Wes Lambert, Restaurant and Catering chief executive told The Australian, “The commission has reset, potentially permanently when wage increases happen for industries that have been disproportionately affected by COVID-19.

“Now that the vaccine rollout has been disrupted potentially, the most affected industries will continue to be the most affected and should not be forced to incur two wage increases within five months.”

Views have been sought from industry as well as the ACTU and federal government, which has urged a 'cautious approach' in its initial submission.

Business NSW and the National Farmers Federation have called for a zero rise in the minimum wage in 2021-22.

Fair Work Commission president Iain Ross is also seeking feedback on changes to how industries are classified.

Understandably, unions have rejected the idea calling on the commission to award a 3.5 per cent pay rise to all minimum-wage and award-reliant workers from 1 July.

Irit Jackson, 13th April 2021