The Howard Government's economic credentials are in tatters with price rises as measured by the CPI pushing living standards down, especially for workers on the minimum wage of $522.12 pw. The data show big rises in the cost of housing (up 3.6% pa), health (up 4.1% pa) and education (up 4.3% pa) and a massive 3% rise in transport, including petrol costs, for the last 3 months. All of us feel the impact of these cost increases. 6401.0 - Consumer Price Index, Australia, Jun 2007 The data confirm that inflation exceeds the last pay rise for workers on the minimum wage dictated by the Howard government’s so-called ‘Fair Pay’ Commission on 5 July this year.

The data show that the living standards of more than a million Australians dependent on the minimum wage are falling under the new IR laws. Add to that the removal of entitlements to penalty rates and overtime, low income workers incomes are struggling to meet the cost of living, despite the supposed economic boom. To add to the problem, interest rates are likely to rise due to the rise in the CPI. The Howard government has succeeded in it agenda to push down labour costs. This has affected the most vulnerable workers – women, young people, the unskilled, part-time and casual workers and the non-unionised. This drop in real wages equates is about $1000 pa.

The graph shows the movement in real minimum wages (i.e. money wages adjusted for inflation) since 2004.