The push against wage rises has begun again – it’s an argument for Australia’s poorest workers to become poorerAs we gear up for the annual fight over the minimum wage it was nice to hear the governor of the Reserve Bank last week come out in defence of low-paid workers getting a pay rise.
She then added: “I don’t think it will make a measurable difference really to what we’re forecasting.”And given the latest inflation figures out yesterday showed that inflation remains at manageable levels despite the surprising fall in unemployment in February, we should continue to be joyful.Over the year to February inflation rose 3.4%, and if prices continue to rise as they have over the past six months annual inflation will be well below 3%.
For example, is it commonly asserted that Australia’s minimum wage is among the highest in the world . But Australians are generally well paid compared to most other nations and as a result a higher wage is needed to survive here than in other, lower-paid, countries. Even after last year’s increase, the award wage was still 2% lower in real terms than it had been in 2020. The ACTU proposal for a 5% increase would only get the award wage back to where it was in 2020.