CPI Increase Falls Short

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CPI Increase Falls Short

June 18, 2017

The 0.83% increase to WA Government contracts announced yesterday will leave many community organisations struggling. WACOSS CEO Louise Giolitto says ‘This increase will go nowhere near meeting the increased costs flowing from last week’s 3.3% rise to the National Minimum Wage. This comes on top of significant wage pressure from the 2012 Equal Remuneration Order which was already putting services under great pressure.’

WACOSS has been concerned for some time about the impact of the ERO and we partnered with Community Employers WA to commission research on its effects on services and organisations. The report on that research was released last week showing that 65% of programs run by agencies surveyed were adversely affected by 10% or more. Services and organisations would become unsustainable between now and 2020 when the final ERO wage increases are due.

‘The recommendation we made in the Report that the Government allocate funds in the upcoming budget, is even more important now given the Minimum Wage increase is so much greater than the CPI,’ Ms Giolitto said.

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