Senator Eric Abetz

Paymasters face more confusion over exactly what they should pay workers following revelations that Julia Gillard’s Fair Work Australia has muddled its figures regarding new hourly rates of pay for workers on the minimum wage.

Fair Work Australia announced last week that workers on the minimum wage would receive a $26 per week pay rise. In handing down their decision they calculated this at an increase of 69 cents per hour.

But paymasters, who calculate these things on an hourly rate, are now unsure what to pay workers because an increase of 69 cents per hour over a 38 hour week comes in at $26.22.

Given that the Fair Work Australia decision impacts on 1.4 million Australian workers this is a miscalculation which could add more than 16 million dollars to the national wage annually.

Once again Julia Gillard and Labor have added to the mess they preside over in the industrial relations sector by creating more confusion and uncertainty for employers and workers.

Labor promised a simpler system, but clearly everything they touch turns to disaster and farce.