Sally McManus, secretary of the Australian Council of Trade Unions (ACTU) on Thursday announced the unions would appeal to the Fair Work Commission (FWC) for a 5 percent pay increase for 2.6 million workers affected by the annual minimum wage review.
If granted, the unions claim would increase the hourly minimum wage in Australia from 20.33 Australian dollars (15.2 U.S. dollars) to 21.35 AUD (16 USD) and the annual minimum wage for full-time workers by 2,008 AUD (1508.7 USD) to 42,183 AUD (31,694.2 USD).
McManus said the increase was needed for workers to cope with inflation and the rising cost of living.
The federal budget for 2022/23, which was handed down on Tuesday night, included one-off 250 AUD (187.1 USD) payments for 6 million Australians.
However, the ACTU said the one-off payments would "do nothing to generate the long-term, sustainable wage growth that workers need."
"Today we are calling on (Prime Minister) Scott Morrison to support the workers of Australia and back this pay increase. If this government is serious about addressing cost of living pressures, it starts with wage growth," McManus said in a media release.
"The biggest, and most immediate action the prime minister can take is backing this increase and arguing alongside us in the Fair Work Commission that this increase is what workers need and deserve."
Employers have indicated they will argue strongly against the proposed pay rise, imploring the ACTU to take into account the one-off budget payments.
Innes Willox, chief executive of employers' organization the Australian Industry (AI) Group, said the government's cost of living measures would give low-and-middle income earners "more cash in their pockets."
"The inflationary risks of these measures will be significantly reduced if they are taken into account in wage deliberations, including in the upcoming national minimum wage case," he told News Corp Australia.
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