Wage moderation is economic vandalism in the current climate

The Fair Labor Relations Commission must reject the corporate lobby’s call for “wage moderation” when many are making record profits. Emma Dawson Report.

2021 Fair Labor Relations Board Annual income review (AWR) comes against the backdrop of the most uncertain economic outlook Australia has seen in decades. This follows the federal budget, which predicts weak wage growth across the economy for at least the next four years.

After the biggest economic shock of the century, economic activity picked up and the unemployment rate fell. Across the country, businesses are reopening and returning or hiring new staff. Some SMEs, in particular the rural hotel and tourism sector, are struggling to recover on a large scale.

Other large companies made record profits during the pandemic, even pocketing millions of dollars in planned government funding. JobKeeper, Paid as wages to workers. Harvey normanFor example, notorious I put over $ 22 million in my pocket JobKeeper’s unused wage subsidies include taxpayer funds, with profits reaching record levels during the acute phase of last year’s pandemic.

However, 60% of the jobs created in the last 6 months are casual and less than a quarter are full-time. As before the pandemic, underemployment and job insecurity remain a major problem for the Australian workforce. Too many Australians do not work long enough or receive enough wages to support themselves and their families.

With federal government backing, employer groups and business lobbyists oppose the coveted minimum wage increase, despite the government’s fiscal forecast for the economic recovery heavily reliant on high levels of consumer spending . This is the context of what we do. Future quote.

The high wages of low- and middle-income earners directly lead to increased personal consumption in the local economy. As the government’s budget forecast shows, domestic consumption by individual households is important in supporting Australia’s economic recovery. Domestic consumption will play an even greater role in economic health and growth until borders reclaim and major export industries such as tourism and international education begin to return to pre-crisis levels. pandemic.

Simultaneous, conservative and large-scale unwashed PR campaigns

When faced with serious issues such as threats to public health and safety, the right’s default position is to wash your hands.

Removal of the increase in the minimum wage and related rewards, as one in four Australian workers depends on the determination of the annual minimum wage to determine the wages to be taken directly or indirectly. This has a significant effect on the disposable income of households. About domestic consumption.

Nonetheless, the submissions made to AWR by the Business Lobby Group and the federal government fall between the rhetoric of household income support and wage growth and the reality of the labor relations approach, which considers the workers’ wages as costs to the company. This reveals that there is a big difference. It has declined due to the pursuit of profit.

Submitted to AWR Australian Chamber of Commerce (ACCI) and Australian industrial group (AIG) calls on the FWC to limit the increase in the minimum wage to just 1.1%. That’s well below the inflation forecast in the Morrison government’s budget earlier this month and below the government’s expectations for wage growth.

Main Economic Forecasts – Federal Budget 2021-2022

Source: Australian Federation, ‘Budget n ° 1, table 1.2

After successfully complaining about a nine-month delay in pay increases for retail workers last year, the Australian Retailers Association (ARA) Again Insist This year’s increase will be postponed to November. Still, if second-half statistics show real GDP and retail growth, ARA argues that minimum wage increases should be limited to the CPI, which means wages should match living expenses. Make. The cost of living has increased, forcing Australian workers and their families to stagnate or fall for years to come.

The Morrison government’s new target of reducing headline unemployment is welcome, but it may not be enough to spur the growth needed to rebuild Australia’s economy. The goal of full employment is not just to create a large number of digits. Full employment as a financial tool for promoting growth provides conditions and secure wage rates that allow workers to continue improving their standard of living at an unnecessarily high cost to the average family. Only works if.

The challenge of employers to “control” wage increases underscores the desire of large companies to reduce wages permanently. And maximize corporate profits at the expense of improved living standards and broader economic growth.

Such an argument threatens Australia’s economic recovery from a pandemic and must be firmly rejected by the Fair Labor Relations Commission.

With hundreds of billions of dollars of public money hitting the stock market and driving up asset prices, aggressively cutting the wages of those who live on labor income is economic vandalism. The decision to limit wage increases for low- and middle-income earners will not only hamper Australia’s economic recovery, but will also increase inequality and reduce social mobility.

Despite record levels of debt and government spending, if the commissioner responds to the demands of the federal business lobby and his supporters, we must demonstrate this massive tax injection ten years later. All that needs to be is the much richer upper class. Poor working class and small middle class.

It’s not the kind of recovery Australians want or deserve. When rebuilding the economy after the shock of COVID-19, workers’ income must be our number one priority. A recovery that leaves workers behind is not a recovery at all.

If our goal is to restore economic growth that supports a better standard of living for all Australians, then instead of just increasing the growth rate of titles and the wealth of those who are already successful, the minimum wage increase by 3.5 % and keep your income like Expected living expenses will increase next year, are essential and should not be delayed.

Emma Dawson Columnist and Secretary General of the IA Per person.. This is an edited excerpt from his latest research treatise, “Just a Reward: A Case of a Salary Increase After COVID-19” (available Wednesday, May 26, 2021).

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