ACTU accuses bosses of ‘greed-price spiral’

Unions warn workers and the economy are being pushed closer to the cliff edge.

ACTU secretary Sally McManus. Picture: NCA NewsWire / Martin Ollman

ACTU secretary Sally McManus has accused the Reserve Bank and profiteering big companies of causing a “greed-price spiral”, warning workers and the economy are being pushed closer to the cliff edge.

The Australian Council of Trade Unions said the national accounts figures showed that any savings accumulated by workers during the Covid pandemic were deteriorating rapidly.

The ACTU reiterated its call for the RBA to cease interest rate rises and for companies including Qantas, Woolworths, Coles and the Commonwealth Bank, which have all posted surging profits in recent weeks, to stop their profiteering.

Some employer groups and conservative economists have warned of a “wage-price spiral” if unions pursue pay rises in line with the high inflation rate.

But Ms McManus said: ­“Between the RBA and big companies, the average Australian has had their modest savings bled dry because of interest rate rises and big business keeping prices far higher than they need to.

“Essentially, we’re seeing a transfer of wealth from working people to the big banks and supermarkets. It’s a greed-price spiral.

“The economy is slowing, ­unemployment is worsening and inflation is starting to ease. Today’s figures show it’s past time for the RBA to stop interest rate rises and for big business to stop price gouging.”

Australian Industry Group chief executive Innes Willox said “compensation of employees, a much broader measure than wage rates, rose strongly over the year with the pace of growth easing in the December quarter”.

“It is critical over the period ahead that governments, businesses and employees all exercise moderation in price setting and wage claims,” he said.

“The risk of a price-wage spiral emerging is real. The consequences of such a spiral are more interest rate rises and the unemployment and household distress this would cause.”

Meanwhile, Woodside has lost its appeal against a Fair Work Commission decision that will force the company to collectively bargain with unions at its North West Shelf platforms for the first time in 30 years.

The oil and gas giant said the commission should not have included supervisors when it ruled the Australian Workers Union and the Maritime Union of Australia had secured the majority support of 200 production workers on Woodside’s Goodwyn, North Rankin and Angel platforms for a collective agreement.

The workers have been ­engaged under individual ­employment arrangements since the 1990s.

Rejecting the appeal, the commission found Woodside’s case proceeded on an “acontextual and pedantic reading” of the ­initial decision, labelling one of its arguments “nitpicking”.

A Woodside spokesman said it was important “we tested the legal requirements for bargaining. The FWC has now determined that those requirements have been met. We will now commence bargaining as per the FWC directions.”

Australian Workers Union national secretary Daniel Walton called for a “reset” in relations.

“I think this provides a really valuable opportunity for Woodside to take a breath and rethink strategy. This scorched-earth lawfare approach is just not working. They should check the scoreboard,” he said.

“Woodside could quite easily sit down with us and hammer out a deal that would be advantageous to all parties. We are talking about an incredibly profitable company. It’s just foolish to stay committed to such an aggressive and hostile stance against your own employees.”