RBA’s concern for record low wage growth

22 November 2017

RBA Governor Phillip Lowe's comments at the Australian Business Economists event last night that employers are to blame for low wage growth show why the system needs to change to give workers more power.

The RBA Governor said hourly earnings are the lowest in more than half a century and changes to work and bargaining agreements mean workers feel they have less bargaining power.

Quotes attributable to ACTU Secretary Sally McManus:

• “Employers won't just give pay rises, that's not how it works, workers need the power to win them. Our system is broken and that is why we have record low wage growth.”
• “We have a broken system that has allowed 700,000 people to have their penalty rates cut. 40% of Australians are in insecure work and one in ten workers is employed on a temporary working visa.”
• “Australian workers are experiencing low wage growth, and widespread wage theft means that good employers are competing with those who are ripping off workers and getting away with it. It’s not fair that people who are obeying the law in a broken system are being punished.”
• “Bargaining rules are too complicated, are in breach of international law, and fine workers severely for taking industrial action.”
• “Working people need better, stronger rights at work to ensure jobs are secure and wages rise. Right now employers like Streets ice-cream can cancel EBAs, causing hard working Australians to experience massive wage cuts. We need to swing the pendulum back in favour of ordinary working people.”