Two-tier pay rise flagged to avoid inflation spike

The Fair Work Commission has raised the prospect of a two-tiered minimum wage scheme that would deliver higher pay rises to the lowest paid while moderating the increase for millions of higher-paid workers to avoid a wage-price spike.

Opposition leader Anthony Albanese seized on the wage price data, which was below market forecasts of 2.5 per cent, as amounting to a real wage cut under the Morrison government.But Prime Minister Scott Morrison insisted that 2.4 per cent was slightly above the 10-year average and“We’re seeing those wages start to rise again. But the challenge is inflation,” he said.

The commissioner’s question followed Mr Albanese last week suggesting his backing of a 5.1 per cent increase in line with CPI applied. Flowing that on to higher award rates was a matter for the wage panel, he said. “This is typical in March,” BIS Oxford Economics senior economist Sean Langcake said, adding the soft result was likely exacerbated by omicron disruptions.

He said a 3 per cent pay rise, as proposed by ACCI, was “reasonable and pragmatic” due to the known and unknown risks facing the economy this year.“The very real fear would be of some inflationary push. Is it 1975 when you can assume a 100 per cent push into inflation? No. But is it also the case that the increases would be directly confined to those award reliant? It’s not that either.”

“Our argument is it’s not just the 23 per cent [of the workforce on award rates] that needs to be looked at,” Mr Smith said.

Have a look at the executive tier. They have no problems giving themselves a pay rise, regularly and out of proportion with people who work for a living.

Let me get this straight: - cheap money is printed for the banks - food, petrol, housing explodes in price - raise interest rates to make mortgage repayments even more expensive - then raise *some* wages at the cost of limiting wage growth for millions?

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