Millions of Australian workers lining up for a massive pay rise under union wages plan to keep pace with skyrocketing inflation: Here’s what you’d get
- 2.8 million workers could receive a salary increase
- Unions want raises to match inflation
Union bosses are pushing for millions of workers to receive a wage increase of at least 7 percent to keep up with inflation.
There are calls for 2.8m Australian employees who are employed at minimum wage or award rates to receive ‘catch up’ raises as inflation soars to 7.8 per cent.
But experts say such steep increases could actually hurt workers by forcing companies to cut hours and cut jobs.
Prime Minister Anthony Albanese said during his election campaign that he supported wage increases in line with inflation to protect the country’s lowest-paid workers.
Now, the union bosses ask him to maintain those convictions.
A seven percent wage increase over the national hourly minimum wage of $21.38 would put an additional $1.40 in a worker’s pocket, bringing the new minimum wage to $22.87.
For a full-time minimum wage employee, this would be an additional $56 per week, or $868.84.
Australian Manufacturing Workers Union National Secretary Steve Murphy said the aussie: ‘At the very least, workers deserve wage increases that match and exceed inflation.
Prime Minister Anthony Albanese said during his election campaign that he supported wage increases in line with inflation to protect the country’s lowest-paid workers. He held up a dollar coin to illustrate the salary increase at that time.
Union bosses are pushing for millions of workers to receive a wage increase of at least 7 percent to keep up with inflation.
“It is ridiculous that workers are punished with interest rate hikes.”
The Reserve Bank of Australia forecasts wage growth to hit 4.2 percent year-on-year in 2023, a figure significantly lower than what some union leaders are demanding.
Reserve Bank Governor Dr. Philip Lowe said in February that if businesses start to match inflation with measure-for-measure wage increases, it would become a persistent cycle.
‘If we end up in the world… where people link wage increases one for one to inflation, inflation will persist. And it will be more difficult. But at the moment, that’s not happening,” he said.
Ai Group chief executive Innes Willox told the publication that unions should heed the RBA’s warnings.
There are calls for 2.8m Australian employees who are employed on minimum wage or award rates to receive ‘catch up’ raises as inflation soars to 7.8 per cent and the cost of living soars.
‘Businesses would be affected by both higher labor costs and the higher cost of borrowing. The result will be fewer people employed and fewer working hours available,’ he said.
Albanese and his government maintain that they still support another wage increase for low-income workers. But they are less willing to commit to an exact figure.
Finance Minister Katy Gallagher told ABC Radio Labor had made it clear they “support pay increases, particularly for low-income workers” since they first took office.
You won’t see that change. We will continue to defend that. But the submission needs to be finalized and go through our processes.’
