Australia's new independent workplace-relations tribunal said today that it will raise the country's minimum weekly wage by 4.8% to 569.90 Australian dollars (about US$485) in early July.
The decision raises the wage rate paid to the country's lowest paid workers to A$15 an hour.
Wages can not be set by fiat, if you set a price above the market clearing price, some of the good will go unsold. In this case. it is some labor that will be priced above the market clearing price..
"Australia's new independent workplace-relations tribunal"
ReplyDeleteThe name alone is scary. It must be packed with unionists.
Think of the destruction Team Obama could cause with a board like that.
Pure theory. In situ that "increase" is not worth anyone's yawn. This kind of jobs is easily done for cash in hand, and there is nothing any "tribunal" can do about it. And I can't imagine any government office chasing such people for taxes, much less during the tooth-and-nail battle with CEOs for mining profits, and before a very undecided elections.
ReplyDeleteLooks like the "new independent tribunal" is impersonating a puffer fish.