The RBA is expecting the near-8% year-end headline inflation spike to only ease to 6.25% in the middle of next year, while it is turning its guns on the ABS wage price index, which it perceives as too narrow.
Treasurer Jim Chalmers says that inflation is likely to peak at 7.75% in the December quarter then decline over the next two years, while real wage rises will return next financial year, but the ACTU says the forecast only "deepens" the pay crisis, with the resumption of growth in mid-2024 meaning workers will have suffered four years of going backwards.
The Queensland Government appears to be continuing the rollout of its revised public sector wages policy, reaching an in-principle deal with the State's teachers that will deliver 11% in pay rises over three years, plus "cost of living top-up payments" of up to 3% a year.
NSW unions have called on the Perrottet Coalition Government to loosen the State's public sector pay cap after a Queensland offer to nurses that will deliver 11% in pay rises over three years plus "cost of living top-up payments" of up to 3% a year.
A UK national living wage review has found that while the NLW's introduction has not caused job losses, the expected productivity gains have failed to materialise.
The NSW Opposition has promised today that if it takes power at the March election, it will scrap the decade-old public sector wages cap and replace it with a productivity-based bargaining system.
In the wake of the RBA governor's warning about the risks of a wage-price spiral, new A-G's department data shows that bargained pay rises are flatlining at 2.7% a year in the private sector, rising at little more than half the 5.1% rate of headline consumer price inflation.
The FSU is seeking annual pay rises of 6% in bargaining at both Westpac and NAB, arguing the hefty increases are justified by the inflation spike and the major banks' continuing strong profits.
NSW's Perrottet Government has raised its 2.5% wage ceiling to 3% next financial year and up to 3.5% in 2023-24, in the face of incomes falling behind consumer price inflation and unions taking industrial action seeking to scrap the cap.
