National Living Wage proposed in the UK: no more than a catch up with Australia

Comments on Matthew Wood "Wage policy ‘coup’ marks debasing of politics by hyper-democracy", 23/07/2015

In terms of living wages, Australia has arguably done it already. I remember reading an article possibly in the Conversation that explained the workplace relations in Australia and its minimum wages.

That article mentioned that in the past there was a case where the judge defined minimum wages as something that can sustain a reasonable family life. In another word, Australia's minimum wages are far from the market driven minimum wages when demand for and supply of labour are in equilibrium.

In reality, the minimum wages in Australia are much higher than in the US and the UK, as much as twice or more than in those countries.

In comparison, the proposal for the introduction of a National Living Wage in the UK by Chancellor George Osborne, irrespective its merits or otherwise, to the most is a catch up to the Australian practice that has been in place for a long time.