Labor bows to RBA real wage cut
The Albanese government accepted workers might need to take a real wage cut to prevent high inflation from getting entrenched, after Reserve Bank governor Philip Lowe warned against common pay rises of 4 to 5 per cent.
Unions rejected the idea and said they would continue to push for annual pay rises of 5 to 6 per cent in negotiations with employers, putting them at odds with the government and the central bank.
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Ronald Mizen reports on politics, economics, business and the law, with a focus on corporate regulators, lobbyists and investigations from Parliament House, Canberra. Connect with Ronald on Twitter. Email Ronald at ronald.mizen@afr.com
David Marin-Guzman writes about industrial relations, workplace, policy and leadership from Sydney. Connect with David on Twitter. Email David at david.marin-guzman@afr.com
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