Australia's employers warn of low workers' productivity
WAGE HIKES, NBN PROJECT IMPACT
Employers' organisations in Australia have warned the government and the public of the fast rise in wages in all territories that are not well supported by an increase in labour productivity.
Employers said it is not impossible to grant wage adjustments, but the the Australian Chamber of Commerce and Industry chief executive Peter Anderson said in a statement that wage pressures can be out of hand if it is not in step with the national productivity performance.
"The figures show wages are rising faster than prices and almost three or four times faster than productivity growth, and that is a cocktail which will spell reduced living standards in the medium term if we don't lift our national productivity performance," Mr Anderson said.
In a related report of Perthnowat news.com.au, Mr. Anderson was quoted saying: "Unions are starting to push the margins of wage claims. The critical issue is not the making of wage claims but the failure to settle wage claims with productivity trade-offs."
Australian Industry Group chief executive Heather Ridout said in a separate statement: "in the context of extremely low productivity growth, it is more of a concern."
Both employers' organizations are also concerned of the impact starting to redound from the government's planned massive construction of the National Broadband Network (NBN) project.
Ms Ridout said that the NBN can actually drive up skill shortages and wages, amidst calls from workers' unions as patterned agreements are about to expire in the next six months.
Reports said collective agreements were delivering wage increases slightly above inflation, with a higher premium for workers covered by a union agreement.
When the Fair Pay Commission that ordered a pay freeze on minimum wages was dissolved, the newly created Fair Work Australia worked on implementing a $26-a-week increase in the minimum wage, which has started to flow on workers' pockets since July.