Doorstop interview, Canberra Airport

AMANDA RISHWORTH, MINISTER FOR EMPLOYMENT AND WORKPLACE RELATIONS:    Well, it is so wonderful to be here at Canberra Airport with some workers behind me, because our Government is absolutely committed to ensure that workers earn more and keep more of what they earn. Whether it's been our Government's legislation on same job-same pay or protecting penalty rates, our Government is absolutely committed to supporting workers right across this country. And of course, that also extends to our minimum and award-reliant workers. 

Our minimum and award-reliant workers are some of the lowest paid in the country - more likely to be women, more likely to be casual workers. And they deserve a economically sustainable real wage increase. We have called, every year since we've been in Government, for a wage increase for these workers. And today, I'm announcing that we will put in another submission to the Fair Work Commission in the annual wage review, calling for an economically sustainable real wage increase.

We know that there are 2.7 million workers that are award reliant or on the minimum wage and, despite being such a large number, they only make up 13 per cent of our wages bill. These are our hard-working workers that are some of our lowest paid. They deserve a wage increase and our Government will be putting that forward. These are people like our cleaners, our hospitality workers, our retail workers. 

Of course our Government has been very focused on, for example - earlier in our term - protecting their penalty rates, and our advocacy will continue with calling for a real- economically sustainable real wage increase. We know that an economically sustainable real wage increase will help these workers with cost of living pressures. Importantly, it helps them particularly weather our cost of living challenges, it helps- it helps them. But it absolutely and can be consistent with the RBA's returning to the inflation band. And so our Government believes this is a responsible course of action, to ensure that these hard workers don't fall behind and can get ahead. 

Now, I will ask James, who is in security here, to say a few words on behalf of the workers.

JAMES, SECURITY WORKER:   Good afternoon, everyone. So, today we’re here for this real wages growth. Everyone in Australia is doing it tough – insurance is going up, groceries are going up - each and every day it’s just getting that little bit harder, and a real wage growth will help everyone. Even something as simple as being able to go to the movies is something that everyone should be able to do once in a while. But right now, everyone is doing it tough and we need help. 

AMANDA RISHWORTH:    Thank you. 

JOURNALIST:    Minister, small businesses are doing it tough. COSBOA has said yesterday that members are desperately looking for relief. Wouldn’t a wage increase put additional pressure on the small businesses that are struggling with the cost of fuel, for instance? 

AMANDA RISHWORTH:    Look, firstly I would say the decision is made independently by the Fair Work Commission. And they look at a range of issues including, of course, how the national economy is going. But I would say that even ACCI has put a submission in calling or asking for a 3.5 per cent increase for these workers. So let's be really clear - even business recognises that our minimum award wage reliant workers deserve a pay increase. 

JOURNALIST:    The ACCI submission was for a 3.5 per cent increase. Inflation yesterday came out at 3.7 per cent. You know, a real wage increase would be above that. So, how can you say that it won't impact the RBA's goal of bringing inflation back to target? 

AMANDA RISHWORTH:    Well, a couple of points I would make. The first is that wages are not a key driver of the recent pressures that we've seen when it comes to inflation. The second point I would make is that I don't accept the characterisation of the figure that you point to. 

The Fair Work Commission not only looks at the monthly figure, but also it makes its decision for wages on the 1st of July and also looks at projected inflation over the time that the pay increase would apply. So, it will make its independent decision with all these things into consideration. But I don't accept your characterisation that's what we’re calling for.

JOURNALIST:    Inflation is predicted to increase from here. Like, the Treasury itself said that inflation really could reach five per cent later this year.

AMANDA RISHWORTH:    Well, obviously we are looking at a range of volatility in the global economy. The Fair Work Commission has a number of months to consider applications from business and from Government, and will make its decision starting from the 1st of July. So, we recognise that it is a volatile environment, but of course the Fair Work Commission will consider and have a lot of information. That is why we haven’t put a number on this, but has asked to consider economically sustainable real wage increase.

JOURNALIST:    So, if inflation reaches five per cent about the time that the Fair Work Commission is considering this, would a wage increase above that be economically sustainable?

AMANDA RISHWORTH:    These are all hypotheticals that I’m not going to deal with. What I would say is they use a number of inflationary measures to work out what they are looking at over the term of the wage increase. What we're saying is what we're advocating for is an economically sustainable real wage increase.

JOURNALIST:    You mentioned global uncertainty. Is this submission kind of a response to the conflict in the middle east and things like rising fuel prices?

AMANDA RISHWORTH:    No, it's not. Our government has been absolutely consistent all the way through that we will stick up for our lowest-paid workers. We don't believe that our lowest-paid workers should take the brunt when it comes to not getting wage increases. So we have consistently advocated to the Fair Work Commission - you may remember when our Prime Minister was in opposition, he was ridiculed for saying workers shouldn't go backwards, but this has been a key commitment from our government, and today the submission that we are putting in is making sure that our lowest paid workers don't fall behind, and that we believe that there is a pathway for an economically sustainable real wage increase that also does not put upward pressure on inflation.

JOURNALIST:    When will the legislation that contract chain orders come before Parliament, and have you spoken to your opposition counterparts about support for those amendments to the Fair Work Act?

AMANDA RISHWORTH:    Well look, the legislation is being debated at the parliament as we speak. We have of course briefed the opposition as we have across the Parliament. They have not indicated whether or not they will support this legislation, and I will take this opportunity to call on them to support this legislation. This legislation is really important to provide an urgent pathway that does not require the full six months of consultation. In the very volatile global environment where we are seeing these fuel increases, it's very important that the Fair Work Commission can look at these contract chain orders in a timely way.

The legislation is before the Parliament now. It will be voted on in the House of Representatives by 1 o'clock today. And we hope that the Opposition, along with other crossbenchers, will support this very important measure that, I might add, has been supported across the industry.

JOURNALIST:    With fuel, you maintain that ships are coming in, those ones that have lost have been replaced, including some more, but people aren't seeing petrol and diesel in regional service stations in particular. I think Australians are wondering how that makes sense. Is that the fault of the government or wholesalers? Where does the buck stop on the issue?

AMANDA RISHWORTH:    Well, look, of course, it is a challenge to make sure when you see such a large spike in demand, to make sure we're able to get the fuel where it's needed. And that is why the government is working around the clock with our state and territory counterparts, which also includes the fuel taskforce coordinator, the fuel supply taskforce coordinator, who is playing a really important coordination role. So look, when you see such a spike in demand, there are of course challenges with distribution, but we are working very closely with our state counterparts and with the industry more broadly to address these.

Increasing supply has been a really critical part of that, including the temporary changes to the fuel standards, has been really important, releasing fuel from our minimum stockpile with the condition that it does go to regional areas. So there's a range of measures the government is taking to ensure that we are able to actually respond to these really significant spike in demand.

JOURNALIST:    Still on fuel, there’s been much discussion about whether people should be working from home due to supply and demand issues. As the Minister for Employment, what are your thoughts on this? Should people start working from home?

AMANDA RISHWORTH:    Look, I don't think we are at that point. We are not at that point yet in terms of managing fuel, but what I would say is, as I say about work from home in general, work from home is really useful for people to have flexible working arrangements. Obviously, there’s a number of work from home arrangements in place, people use them to help them balance their family responsibilities with work, but we are not at the stage yet where we are suggesting people should work from home because of fuel shortages.