Minimum wage prevents working poor: Labor

Bill Shorten says deferring minimum wage increase could lead to the creation of working poor. Source: AAP

FEDERAL Labor leader Bill Shorten says he won't support the creation of a US-style working poor in Australia, after business groups called for any minimum wage increase to be deferred this year.

The Fair Work Commission sets minimum wage increases in Australia, with workers granted a rise of $15.80 a week last June.

Industry bodies such as the Australian Chamber of Commerce and the Australian Industry Group (AiGroup) say any 2014 increase should be minimised or deferred, because business has already been hit with higher penalty rates, apprentice wages and superannuation levies.

"With employment growth very slow for most of last year and not looking all that healthy as we head into 2014, we need to avoid adding to costs," AiGroup chief executive Innes Willox told Fairfax Media.

But Mr Shorten said 1.5 million Australians relied on the minimum wage, which was part of the strong safety net to prevent an underclass of working poor.

There was a process to set the minimum wage and all parties were welcome to put their position.

"Labor does not support a working poor as we see in the United States," he told reporters in Melbourne on Thursday.

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