THE ACTU says recommendations to lower the minimum wage will create an underclass of "working poor". Source: AAP
RECOMMENDATIONS to cut the minimum wage will result in low income earners taking home pay packets equivalent to 1998 levels, the ACTU says.
Its analysis of the commission of audit has found the plan to reduce the minimum wage to 44 per cent of average weekly earnings will leave Australians worse off than workers in Britain and Canada within two to three years.
This will create an underclass of "working poor", the union body says.
"The plan to aggressively drive down the minimum wage would see its real value fall to its 1998 level," the ACTU says.
Audit Commission chairman Tony Shepherd cited the 12.5 per cent youth unemployment rate as one reason minimum wage reform was needed.
ACTU president Ged Kearney said the minimum wage had nothing to do with the federal budget and there was no evidence reducing it would improve employment prospects for young people.
"I do not see how lowering the minimum wage will help youth unemployment," Ms Kearney told reporters on Monday. "It will create more social problems than anything else because people will not be able to meet their costs.
"What sort of government thinks it's a good idea to savagely cut the already unacceptably low wages of the lowest paid workers in the community?"
Melbourne airport cleaner Victor Barrientos said the minimum wage made life hard for his family.
"I have to do two job - one job in the morning, so early, and after my wife and I go to clean a school," Mr Barrientos said.
He said he felt under attack from the government.
Ms Kearney said other recommendations meant people would be paying more for basic services.
"They won't have any public services they can rely on because all the advice being taken by the government is from big business," Ms Kearney said.
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