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Minimum Wage Rise To Be Announced June 2
The Fair Work Commission is scheduled to announce its Annual Wage Review, which determines the size of the minimum wage increase plus some other awards, at 1000 Friday June 2, according to The Australian. The rise will be applied from July 1 and will impact around a quarter of workers. The unions have been arguing for a 7% rise to keep in line with the cost of living and Treasury assumed it would be around there in its budget projections.
- RBA Governor Lowe has said that any increases above 2-3% plus productivity growth over time would be inflationary. (See Lowe Warns Against Large Wage Gains, Proposed Rate-Setting A Concern) The lack of productivity growth is likely to be a problem for the RBA with a 7% minimum wage rise.
- The Fair Work Commission has voiced concerns that if it grants an outsized increase then it will mean higher rates to meet the inflation target, which would leave people worse off. (See Fair Work Considering RBA's Inflation Goal In Minimum Wage Decision)
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.