September 2023
Opening statement to the ACTU Price Gouging Inquiry
This week Professor Allan Fels, the former head of the Australian Competition and Consumer Commission (ACCC), has begun an inquiry into price gouging across a range of industries, including banks, insurance companies, supermarkets, and energy providers. The inquiry commissioned by the ACTU comes off the back of the highest inflation in 30 years and the biggest falls in real wages on record.
Starting to see some signs of stronger wage growth from enterprise agreements
Some recent strong wage growth in enterprise agreements bodes well for workers
A record number of Australians are now working more than one job to make ends meet
In the past year the number of people working more than one job has risen 7%.
The government’s measure of “well-being” just plummeted
The three months to June saw one the biggest ever falls in the government’s measure of well-being.
The weak economy shows the Reserve Bank is not threading the needle
We have now had two consecutive quarters of GDP per capita falling – hardly the soft landing the RBA wants.
August 2023
Australia’s emissions are rising at a time they need to fall quickly
The latest quarterly greenhouse gas emissions survey shows that Australia is heading in the wrong direction – and that needs calling out.
Enterprise agreements data shows wage growth remains steady despite some solid increases
The average wage growth in enterprise agreements shows that workers continue to see their real wages fall.
The Intergenerational Report shows Australia’s population is ageing, but we need not panic
Australia’s population is set to age, but that does not mean we need to go without – we just need to be honest about paying for it.
The Intergenerational Report notes that productivity matters, but we also need to care as much about who benefits
The forecast of productivity growth in the Intergenerational Report is not all doom and gloom – but it will be if workers continue to receive less than their fair share of the benefits
. . .For most workers, wages are still failing to keep up with inflation
While overall wages grew in line with inflation in the June quarter for workers in most industries real wages are still going backwards.
Good to see real wages no longer falling, but we have a long way to go
It is now 3 years since real wages have increased
Wage growth in Enterprise Agreements remains steady
The latest figures of wage growth in enterprise agreements show that wages continue to grow by much less than inflation
Despite what employers say, workers are not being rewarded for productivity growth
Employers says wages should rise in line with productivity, but they do all they can to prevent that happening.
The latest latest inflation figures make it clear the RBA should not raise rates
The Reserve Bank should keep rates on hold as the biggest drivers of service prices will not be affected by interest rate rises.
July 2023
Inflation is falling so let’s make sure we don’t let unemployment rise
Inflation is coming down fast so we should now shift our attention to making sure unemployment does not rise
Hollywood actors showing that unity is strength
When workers are united, and able to collectively bargain, they can win good outcomes
If the unemployment rises to 4.5% who is likely to lose their job?
The RBA is currently targeting a 4.5% unemployment rate, and that is going to hurt young, low skilled and low paid workers,
June 2023
New enterprise agreement data shows more evidence that wages are not driving inflation
The latest data on Enterprise Bargaining Agreement highlights that wage remains very much within levels that are consistent with the Reserve Bank’s inflation target
Bolstered by a biased tax system, house prices keep rising
As interest rates rise, the gains from negative gearing increase.
The number of people working multiple jobs hits another record
For the sixth consecutive quarter a record number of people are working more than one job
OECD confirms that inflation has been mostly driven by corporate profits
In the debate over what is driving inflation – the OECD has looked at 15 nations across the world and found that in Australia and most other nations, the answer is profits
The economy is slowing as households get smashed by yet more rate rises
A slowing economy and households closing their wallets is bad news with a Reserve Bank determined to keep raising rates
The level of public housing needs to return to previous levels
Australia needs more housing, and we definitely need more public housing
May 2023
Real wages falls and interest rates rises signal tough times for households and the economy
You can’t sustain household spending while real wages continue to fall, and households are starting to let everyone know
As profits rise, workers continue to be the ones reducing inflation
While record company profits are dismissed as “short-term” workers continue to suffer ongoing falls in real wages
Wages are growing solidly but real wages continue to plummet
Wages are growing the best they have for 11 years, but real wages are now back at the level they were 14 years ago
The RBA raised rates in March and May despite its own analysis saying they were not needed
The Reserve Bank’s own research showed that raising rates after February would only increase unemployment, not lower inflation
Don’t worry about a budget surplus, worry about a slowing economy
Rather than be a budget that will fuel inflation, the budget is actually closer to austerity than stimulation
Wage growth under enterprise agreements shows no signs of driving inflation
Wages growth under enterprise agreements show that workers continue to be the ones doing it toughest during the period of high inflation
Lower inflation but lower wages – the RBA predicts lower real wages
By the middle of 2025 the average wage will be worth less in real terms than it was a decade and half earlier
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