WAGES – AUSTRALIA

Rebound in wage data offers glimmer of hope

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Original article by Jacob Greber
The Australian Financial Review – Page: 5 : 5-Dec-17

Data from the Australian Bureau of Statistics shows that wages in the private sector rose by 1.1 per cent quarter-on-quarter during the three months to September, and 2.5 per cent year-on-year. Data on public sector wage growth will be released with the national accounts on 6 December. However, the latest data suggests that the Reserve Bank will have scope to increase the cash rate if the recent growth in wages is sustained. Craig James of CommSec expects an interest rate rise in late 2018.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, COMMONWEALTH SECURITIES LIMITED, AUSTRALIA. FAIR WORK COMMISSION, GOLDMAN SACHS AUSTRALIA PTY LTD

Is the low-wage tide about to turn? Signals look good, Treasury says

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Original article by Jacob Greber
The Australian Financial Review – Page: 10 : 26-Oct-17

Treasury secretary John Fraser has told a Senate estimates hearing that there are indications that wages growth is gaining pace in some sectors of the economy and some geographical areas. Fraser noted that many workers have been reluctant to press for pay rises in the wake of the global financial crisis, which he adds has resulted in the longest business cycle he has experienced.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Income slump hits the middle

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Original article by Simon Benson
The Australian – Page: 1 & 8 : 29-Sep-17

The Department of the Treasury has released a report which shows that wages growth slowed to 1.9 per cent in the year to June 2017. Meanwhile, real wages growth has been significantly lower over the last five years than in the previous decade. The figures also show that despite claims of growing income inequality, university graduates have experience lower growth in wages than people with no higher education since 2010. The report identifies a number of factors that have contributed to the low growth in wages over recent years.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN LABOR PARTY

Soaring electricity prices an obstacle to wage rises

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Original article by Jacob Greber, David Marin-Guzman
The Australian Financial Review – Page: 7 : 8-Sep-17

Employers’ groups have warned that the rising cost of electricity is affecting their capacity to grant pay rises. Australian Industry Group CEO Innes Willox notes that companies’ margins are being hurt by rising power costs, while consumers in turn are reducing their overall spending due to the impact of power price hikes. Australian Chamber of Commerce & Industry CEO James Pearson adds that many companies are delaying investment decision due to rising power costs, and some are considering relocating offshore.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, BUSINESS COUNCIL OF AUSTRALIA, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD

Wage growth going backwards

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 4 : 7-Sep-17

National accounts data shows that 240,000 jobs were created in Australia during the year to June 2017. However, the figures also show that wages grew by just 0.7 per cent in the June quarter and 2.1 per cent year-on-year. Likewise, annual growth in compensation per hour is at its lowest level in almost 25 years, at negative 0.3 per cent in the June quarter. Reserve Bank of Australia governor Philip Lowe recently forecast that growth in wages in some sectors will eventually be extended to the broader economy, but the national accounts data suggests that this is not yet occurring.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Wage growth is economy’s Achilles heel, warns Moody’s

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 24-Aug-17

Ratings agency Moody’s Investors Service has maintained its stable outlook for Australia’s triple-A credit rating. However, Moody’s says factors such as low growth in wages and rising household debt – which now comprises 123.1 per cent of GDP – represent key risks to the economy. Meanwhile, Moody’s has forecast that state and federal government debt will increase to 42 per cent of GDP in 2017-18, while the firm has questioned whether the Federal Government will be able to limit growth in expenditure over the Budget forward estimates period.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED

Mining-state revival drives ‘best job growth in 40 years’

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Original article by David Uren
The Australian – Page: 2 : 18-Aug-17

Data from the Australian Bureau of Statistics shows that 202,000 jobs have been created so far in 2017, including 153,000 full-time jobs. Some 27,900 jobs were created during July, with the official unemployment rate easing to 5.6 per cent and the labour force participation rate rising to a new high of 77.4 per cent. The major mining states of Western Australia and Queensland have recorded jobs growth of 35,400 and 70,900 respectively in the year to date. Meanwhile, the average full-time wage has risen to $A80,250, according to separate data from the ABS.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, SEEK LIMITED – ASX SEK

Wages stall at record low of 1.9 per cent

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Original article by Eryk Bagshaw
The Age – Page: 11 : 17-Aug-17

Data from the Australian Bureau of Statistics shows that there was overall wage growth of 0.5 per cent in the June quarter, and 1.9 per cent in the year to June. Private sector wages grew by 1.8 per cent in the year to June, although there was 2.5 per cent growth in public sector wages. ABS chief economist Bruce Hockman says underemployment partially contributed to the low growth in wages. The May 2016 Budget had forecast wage growth of 2.5 per cent in 2016-17.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, CAPITAL ECONOMICS LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD

Spitting chips: workers accuse potato giant of ‘wage theft’

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Original article by Anna Patty
The Age – Page: 4 : 6-Jul-17

The National Union of Workers has warned that extending the industrial award for farm workers to people who work in packing and storage sheds could result in wage cuts of up to eight per cent. Potato grower Mitolo Group has applied to the Fair Work Commission to have the scope of the Horticulture Award broadened to include non-farm gate workers, but the NUW argues that such staff should be covered by the Storage Services Award.

CORPORATES
MITOLO GROUP PTY LTD, NATIONAL UNION OF WORKERS, AUSTRALIA. FAIR WORK COMMISSION, THE AUSTRALIAN INDUSTRY GROUP

Unions need to argue wage rises drive growth, says Swan

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 26-Jun-17

Former federal treasurer Wayne Swan says the Australian Labor Party and the union movement need to better argue the case for improved wages for middle-class workers. Swan will tell the annual ACTU congress that he fears that the Australian middle-class will become like the fast-disappearing US middle-class if wages do not rise. Swan’s comments follow those recently made by Reserve Bank governor Philip Lowe, who said employees need to be more forceful when it comes to asking for wage rises.

CORPORATES
AUSTRALIAN LABOR PARTY, ACTU, RESERVE BANK OF AUSTRALIA, DEMOCRATIC PARTY (UNITED STATES)