Already a subscriber?Unions’ push for a 5 per cent increase in minimum rates for 2.9 million workers will ensure interest rates remain higher for longer and restrict hiring, businesses warned.
“Five per cent – I mean that is basically an open letter to the governor of the Reserve Bank saying that they would be happy for interest rates to remain higher for longer,” Mr McKellar told the ABC. However, the ACTU has said that 2023’s record-high increase oversaw a rapid fall in inflation over the year and proved a 5 per cent wage increase would not have negative effects.
“It’s gone backwards per person so it’s harder for businesses to raise prices for goods and services, particularly those in discretionary spending space,” he said.
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