General

Industrial Relations

New push to undercut legal minimum wage

A new push by major employers in the real estate industry to introduce a commission-only wages system could result in agency salespeople being paid less than the minimum legal wage.

The Federal Government's new pay commission has agreed to consider a push by major employers in the real estate industry to scrap minimum wages for salespeople and replace them with piece rates.

The employers want the pay commission to exempt them from requirements under the Federal Government's new IR laws to pay the minimum wage which for NSW real estate agents is $546.44 a week.

In a submission to the pay commission's review of minimum wages in the real estate sector lodged this week, the ACTU argues that commission-only payments are inherently unfair for employees and that wages need to be underpinned by a decent minimum rate of pay.

ACTU President Sharan Burrow said:

"The Howard Government said that its Fair Pay Commission would protect minimum wages but now it is considering allowing some employers to avoid paying them altogether.

A piece-rate system would disadvantage young salespeople seeking to get a foothold in the industry as well as agents working in regional and country areas or where property prices and turnover is low.

There are a number of variables outside the control of an agent that would seriously affect his or her capacity to earn a decent income, including:
· Access to properties granted by the employer;
· The number of other agents with access to the same properties;
· The state of the overall property market and the value of the properties in the local area.
This new move by employers to avoid paying the legal minimum wage is another attempt to transfer all the business risk onto employees and should be rejected," said Ms Burrow.

Copies of the ACTU Submission to the Fair Pay Commission Review of Minimum Wages in the Real Industry are available on request

© 2001 Community & Public Sector Union - State Public Services Federation (CPSU-SPSF) - National Office

http://www.cpsu-spsf.asn.au/latest_news/general/20070503_wage.html
Last Modified: 03 May 2007