Unions seek A$27 weekly pay increase

Australia's unions are confident they will get the A$27-a-week pay rise for low paid workers ahead of the start of wages hearings which began yesterday.

Wages were frozen during the financial crisis and low-paid workers were struggling while the cost of living went up, Australian Council of Trade Unions (ACTU) secretary Jeff Lawrence said outside Fair Work Australia before the start of three days of hearings.

"We're very hopeful based on the nature of the process, based upon the legislation, of course which is different, about getting a result favourable to our claim," he told reporters.

The hearing in Melbourne is the first under the new wage setting mechanism established under the Fair Work Act.

"We think that's [A$27 a week] a very reasonable claim, particularly given last year the Howard Government Fair Pay Commission actually froze wages whilst executive salaries and profits were going up, whilst dividends were being paid to shareholders," he said.

Last week's Budget showed the Australian economy was in good shape, he said.

"Our submission shows the claim would have a negligible impact economically and negligible impact in terms of inflation," Mr Lawrence said.

"The fact is Australia got through the global financial crisis in a better position than other countries and there is the ability for workers to actually receive a reasonable increase.

"Those workers have had the global financial crisis, interest rates going up, increases in various aspects of the cost of living and all these things create pressure on families and household budgets."

The workers affected included those in industries such as cleaning, hospitality, retail, transport, childcare and aged care. The wage review must be completed by June 30.

- AAP