Original article by David Peetz
The New Daily – Page: Online : 10-Sep-19
Australian nominal wage growth has been under half the OECD average since 2013, according to Jim Stanford from the Australia Institute’s Centre for Future Work. A senior Treasury official recently suggested low wage growth could be due to workers not changing jobs, while Reserve Bank governor Philip Lowe has contended caps on civil service pay rises might be another factor. A further factor behind low wage growth that neither Lowe or the Treasury official seemed to take into account is the reduction in worker bargaining power that has resulted from the fall in unionisation over recent decades.
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, THE AUSTRALIA INSTITUTE LIMITED, RESERVE BANK OF AUSTRALIA