Unions heralded a “new dawn” for wage negotiations after Labor’s resounding victory in NSW and will demand pay rises that track inflation, prompting a key credit rating agency to warn of knock-on effects for other states, especially Victoria.
S&P is monitoring NSW’s wage policies – once cited by the Reserve Bank as a key inhibitor to wage growth – and any implications for wages and financial ratings, including for Victoria’s 1.5 per cent wage cap.
Samantha Hutchinson is the AFR's National Reporter. Most recently, she was CBD columnist for The Sydney Morning Herald and The Age. Before that, she covered Victorian and NSW politics and business for The Australian, the AFR and BRW Magazine. Connect with Samantha on Twitter. Email Samantha at samantha.hutchinson@afr.com.au
Tom Burton has held senior editorial and publishing roles with The Mandarin, The Sydney Morning Herald and as Canberra bureau chief for The Australian Financial Review. He has won three Walkley awards. Connect with Tom on Twitter. Email Tom at tom.burton@afr.com
