Balance jobs and low wages

Comments on Michael Stutchbury “Old IR tribunals don’t work”, 31/07/2009, http://blogs.theaustralian.news.com.au/currentaccount/index.php/theaustralian/comments/old_ir_tribunals_dont_work/

Michael, while there is some logic in maintaining the minimum wages level unchanged by the Fair Pay Commission, there is also logic in the 2.8% increase for low paid by NSW Industrial Relations Commission. It is a matter of balance, and views of course.

You applauded the FPC decision and criticises NSW IRC decision. That is understandable, but wrong.

Just think about this question, if it will reduce the welfares of 1000 low paid workers to keep or increase 1 job, is it still good enough from public policy point of view?

Besides, what if all other wages than the minimum wage increase? Is it fair for the lowest paid?

Further, there is also a responsibility for employers to be fair and share some costs of bad times.

Yes, it would be always good to keep as many people work as possible and it is beneficial, but one has to recognise there are costs of doing it and balance the costs and benefits.

To argue just purely for jobs at no costs is not good enough.