The OECD argue that low income workers in Australia should not be given higher wages - at 57.6% of average earnings these are the most generous in the world - they should instead be given tax relief. With family allowances, someone with 2 children earns 85% of average incomes. This makes unskilled workers among the most expensive in the developed world - making them more expensive will damage job prospects.
While commending the WorkChoices legislation the OECD argue the Government should move more directly to abolish all industrial awards or pare them back markedly. Let wages be determined by the productivity of workers in markets and put 'social justice' issues where they belong - with Government.
Taxes for the low paid should be slashed to improve work incentives.
The Australian's editorial puts it starkly - we should not trade jobs for minimum wage hikes. Its what I have argued here repeatedly. I can scarcely credit for the view since it is so non-original. Its what every economics instructor in the country tells their first-year students.