The Same Mistake Twice

The Self-Defeating Consequences of Public Sector Pay Freezes
by Troy Henderson and Jim Stanford

New research from the Australia Institute’s Centre for Future Work reveals the consequences of freezing public service pay, both for public sector workers and for the broader economy.

Governments are devoting unprecedented resources to protecting Australians against the health and economic effects of the pandemic, but a contradictory push to adopt fiscal austerity measures is also becoming apparent. Leaders of governments at all levels — federal, state and local council — have already announced plans to freeze wages and cancel previously agreed pay raises for public servants.

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