“Australia needs a pay rise”: RBA boss

“Australia needs a pay rise”: RBA boss

The Governor of the Reserve Bank has told a room of industry heavyweights that he wants them to pay working people more.

In his address to the Australian Industry Group, RBA boss Phillip Lowe said he would like to see pay rises of three percent for working people.

“In my judgement, a return, over time, to a world where wage increases started with a 3 rather than a 2 is both possible and desirable,” Mr Lowe said in a wide-ranging speech.

Mr Lowe also called out the business lobby for relying in importing workforces rather than employing and training locals, saying “changes to the bargaining power of workers and an increases in the supply of workers as the global economy becomes more integrated” is one reason we aren’t getting fair pay rises.

The comments come after the business lobby howled at the unfairness of a union-won 3.5-percent rise to the minimum wage last month.

Quotes attributable to ACTU Secretary Sally McManus:

“This is the second time the RBA Governor has stood up and said Australia needs a pay rise. But business owners don’t take action because nothing compels them to.

“We need to change the rules so that big business has less power and working people have more, so that we can get the fair pay rises and more secure jobs we need.

“Businesses have been relying on easily exploited temporary visa holders instead of hiring and training locals. This is unfair and it undercuts local wages. The Governor said as much in his speech.

“Working people can change the rules so that we get fair pay rises – the collective power of working people is the only thing that has ever compelled them to deliver fairness. We have done it before and we will do it again.”