The Fair Work Commission has stoked pay expectations across the economy while doing diddly squat to boost productivity. That will inevitably be inflationary and cost jobs.
The Fair Work Commission’s decision to raise the minimum wage by 5.2 per cent hits a relatively small but important cohort of minimum wage workers. It also sees increases of between 4.6 per cent and 5.2 per cent for about 2.6 million workers whose pay is set by awards.
While the decision in itself has no immediate impact on well-paid industries such as the resources and energy sector, the flow-on effects will profoundly affect wage claims and salary expectations throughout the economy.
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Steve Knott AM is chief executive of the Australian Resources & Energy Employer Association.
