RBA WARNS LOW WAGES GROWTH LINKED TO INEQUALITY
03 May 2018
The Reserve Bank Governor, Dr Philip Lowe, has confirmed that low wages growth is set to continue, and has echoed Labor’s concern that this is impacting inequality.
In his speech to the Reserve Bank board dinner, Dr Lowe said, “Increases in wages of around 2 per cent have become the norm in Australia, rather than the 3 to 4 per cent mark that was the norm a while back.”
He also said, “A pick-up in wages growth over time would be welcome. Perhaps more importantly, sustained low wages growth diminishes the sense of shared prosperity that we have in Australia.”
Labor has long been warning that the decline of enterprise bargaining is contributing to wages growth at record low levels and rising inequality.
Workers continue to feel the pinch of stagnant wages growth and Malcolm Turnbull doesn’t have a single policy to grow wages and reduce inequality – in fact they’re making things worse.
Here’s a tip for the Treasurer, a plan to cut penalty rates of ordinary workers, while giving a tax cut to millionaires and big business, will not increase wage growth.
With the Budget coming up next week it’s worth remembering the Treasurer’s fairytale forecast for wages growth last Budget, where Scott Morrison announced he expected wages growth to double from its current record low to 3.75 per cent.
Just how out of touch can this Government get?
Just this week the junior Minister Craig Laundy conceded that when it comes to workplace relations, this government is a policy free zone.
This is a government that has no agenda and no ideas.
It is completely unsurprising that under this Government wages growth is struggling, while cost of living pressures are rising and workers are struggling to make ends meet.
Federal Labor is leading the policy debate in workplace relations. Labor is committed to making workplaces fairer and more secure and we have announced a suite of policies to do this, with more to come.