WAGES – AUSTRALIA

Productivity blamed for low wage growth

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Original article by Sid Maher
The Australian – Page: 2 : 21-May-18

Australian Industry Group CEO Innes Willox has rejected claims by ACTU president Sally McManus that low wages growth is the result of a shift in the industrial relations system in favour of employers rather than unions. Research by the AiG suggests that low growth in productivity is a major contributor to flat growth wages. Willox says low wages growth is a global trend, and he notes that there has been strong wages growth in some sectors due to supply and demand considerations.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, ACTU, RESERVE BANK OF AUSTRALIA

Flat wages cast doubt on budget

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Original article by Adam Creighton
The Australian – Page: 1 & 4 : 17-May-18

New figures show that Australian wages rose by just 0.5 per cent in the March quarter, unchanged from the three months to December. Independent economist Saul Eslake says the wage price index data may undermine the Federal Government’s forecast for a Budget surplus in 2019-20, which is dependent on growth in wages and consumer spending. The subdued growth in wages may also affect the outlook for official interest rates, with Sarah Hunger of BIS Oxford Economics suggesting that the cash rate could potentially be on hold until 2020.

CORPORATES
BIS OXFORD ECONOMICS PTY LTD, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AUSTRALIAN LABOR PARTY

Performance bonuses here to stay at ABC

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Original article by Stephen Brook
The Australian – Page: 3 : 17-May-18

The ABC has defended its remuneration system in the wake of revelations that staff received bonuses totalling $A2.6m in 2017. A spokesman has indicated that fixed remuneration rates for ABC executives are consistent with market rates, while performance pay scales are below market rates. Communications Minister Mitch Fifield notes that federal government departments abolished executive bonus schemes in 2008, but the government has no power to direct the ABC to do so.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, SPECIAL BROADCASTING SERVICE (SBS), NBN CO LIMITED, COMMUNITY AND PUBLIC SECTOR UNION

Jobs surge but economy still stuck in neutral

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Original article by David Uren
The Australian – Page: 4 : 8-Mar-18

Australia’s latest national accounts data shows that the economy grew by 0.4 per cent in the December 2017 quarter, and 2.4 per cent year-on-year. However, consumer spending grew by one per cent during the quarter, after revised growth of 0.5 per cent in the September quarter. Andrew Hanlan of Westpac warns that the strong growth in consumer spending may not last, noting the low growth in wages and the high level of consumer debt. The data shows that there was zero growth in the average wage during the December quarter, with annual wages growth of 1.6 per cent.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN BUREAU OF STATISTICS

Underpaid, overworked, fearing sack

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Original article by Adam Gartrell
The Age – Page: 8 : 2-Mar-18

Fifty-nine per cent of workers who took part in an ACTU survey stated that they are worried that they will lose their current job in the next couple of years. Over 70 per cent expressed the view that they felt as if they are working harder for less pay, while 80 per cent stated that getting a reasonable pay rise was difficult. ACTU Secretary Sally McManus, says the crux of the survey results is that workers want reasonable wage rises and more job security. The ACTU intends to use the results of the survey to back its case for an increase in the minimum wage.

CORPORATES
ACTU, AUSTRALIA. FAIR WORK COMMISSION

Wages growth higher among public sector

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Original article by Adam Creighton
The Australian – Page: 4 : 22-Feb-18

The Australian Bureau of Statistics’ wage price index data shows that wages in the private sector rose by 1.9 per cent in 2017, compared with 2.4 per cent growth for public sector wages. The mining sector had the lowest growth in wages, at 1.4 per cent, while retail industry wages rose by just 1.6 per cent and wages in the healthcare sector increased by 2.7 per cent. There was 2.1 per cent growth in wages overall during the calendar year, including 0.6 per cent growth in the December quarter.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE TREASURY, CAPITAL ECONOMICS LIMITED, INTERNATIONAL MONETARY FUND, RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Use tax cuts to boost wages: ex-BCA boss

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 8-Feb-18

Former Business Council of Australia president Tony Shepherd says employees and shareholders of large companies should directly benefit from any reduction in the corporate tax rate via higher wages and increased dividend payouts. Many large companies in the US have announced wage rises in response to the Trump administration’s tax package. However, Treasurer Scott Morrison and Opposition Leader Bill Shorten have questioned the merits of a "social contract" in Australia if across-the-board corporate tax cuts are passed by federal parliament.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, QANTAS AIRWAYS LIMITED – ASX QAN, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESFARMERS LIMITED – ASX WES, WOOLWORTHS GROUP LIMITED – ASX WOW, McDONALD’S AUSTRALIA LIMITED, BLUESCOPE STEEL LIMITED – ASX BSL, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. NATIONAL COMMISSION OF AUDIT

Job growth brings end to nation’s income recession

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 29-Jan-18

Leading economists Chris Richardson and Saul Eslake say a number of factors suggest that Australian wages will begin to rise after 18 months of stagnant growth. They cite factors such as strong growth in jobs during 2017 and a growing shortage of skilled labour. Eslake also notes that real net national disposable income per capita is now increasing at a faster pace than real gross domestic product per capita. He adds that while wages growth appears to have bottomed, the official unemployment rate of 5.5 per cent will need to fall before there is sustained growth in wages.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, STANDARD AND POOR’S FINANCIAL SERVICES LLC, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Wage growth slumps to a record 25-year low

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 3 : 16-Jan-18

Wage increases for new enterprise agreements struck in the September 2017 quarter were just 2.2 per cent, the lowest increase in 25 years. The number of new agreements struck in the quarter was the lowest since 1995, while wage increases in union enterprise agreements were lower than those in non-union agreements, which is uncommon. The construction sector remained the industry where wage growth was strongest, while real estate and transport were among the sectors where wage growth was lowest.

CORPORATES
GRIFFITH UNIVERSITY, AUSTRALIAN LABOR PARTY, UBS HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Widening inequality leaves low-skilled out

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Original article by Ben Potter
The Australian Financial Review – Page: 3 : 12-Dec-17

Skilled workers such as engineers and doctors have enjoyed average annual wage increases of 1.4 per cent for the past seven years, according to modelling by economists Janine Dixon and Nhi Tran. However, low-skilled workers such as cleaners and labourers have not seen any increase in their wages. Dixon says workers in this category will no doubt be tempted to blame trade or immigration for their plight, but the problem lies with automation and with not having the right skills to seek other jobs. Tran and Dixon contend that inequality in Australia will get worse if more effort is not made to boost the skills of low-paid workers.

CORPORATES
VICTORIA UNIVERSITY. CENTRE OF POLICY STUDIES, AUSTRALIAN LABOR PARTY, UNIVERSITY OF MELBOURNE, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH