Employers and economists are warning that Labor leader Anthony Albanese’s advocacy for pay rises greater than 5 per cent to keep pace with soaring cost of living will crush businesses, fuel inflation and put upward pressure on interest rates.
Businesses are reporting a rapid increase in the cost of workers, with National Australia Bank’s business survey on Tuesday showing labour cost growth hit 3 per cent in quarterly terms in April. “Of course business owners want to look after their staff ... but the conditions we find ourselves in economically are very different to two-to-three years ago.”Australian Chamber of Commerce and Industry chief executive Andrew McKellar said small businesses supported “reasonable” pay rises but “imposing unaffordable wage increases on small business will cruel jobs, not create them”.
“[A]ccording to the formula quoted by the Treasury and the Reserve Bank, nominal wages should be able to comfortably grow by at least our claim for 5.5 per cent without putting any upward pressure on inflation,” the ACTU’s submission to the wage panel said. The government has not nominated a figure in its submission to the commission on how much wages should rise by but Mr Morrison says they should go up as unemployment goes down.Running off his mouth
In the year to March, the headline Consumer Price Index rose by 5.1 per cent and the underlying inflation rate, which strips out volatile price movements, was 3.7 per cent.
Nah! Labor knows best. You should be more concerned with collapsing house prices, already down 15-20% and rising interest rates. Nothing Labor can do about this, the good times are DEAD!
So we all have to go backwards to fund companies who hand their execs 25% annual pay rises? Right, got it.
Rubbish.
Can anyone tell me which idiot of an economist thinks that, improving consumers buying power is bad for businesses?
Employee pay rise = reduced profits. Inflation is too much money chasing too few goods. Increasing productivity is one way to combat inflation. Inflation and increase in suppliers’ cost base are two different issues.
Dan Andrews crushed businesses. Wage rise means more spending. That’s a good thing.
That’s BS. And I run a small business
With all the rorts they have received over the last 3 years they will be just fine.
The up coming recession will take care of inflation. Set in place by massive government spending (almost none of it invested in productivity) and an RBA that totally failed its own mandate. Soon the RBA will present us with a couple of ‘shock factor rate’ hikes.
WhteRbbnAdvocat What a load of crap. So you want the poor to get poorer and the rich to get richer
Employers is the operative word! Nothing about economists saying it!
Huh!
LOL. “I am Scott Morrison and I endorse this message”.
If yr business can’t afford a 5.1% increase 2an expense that should equate to circa 20% of your sales (ie 1.02% of sales, increase) then your business is likely to fall over with any head wind Better you get on working out how you’re going to repay Aussies for JobKeeper auspol
Couple of ccp simps
lol - reported as misinformation
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Source: FinancialReview - 🏆 2. / 90 Read more »