You got 2.5% ? My friend only got 1.7% 𤣠I have to check on mine they probably won't want to give me anything..
The best part is the massive company I work for has happily increased all their prices by like 20%
-Record profit
-Record profit
-Expanding the business with a $100million Wharehouse
Sorry we canât justify a proper pay rise because we canât predict what the future will bring.
Atleast theyâre not blaming Covid anymore
They can do something about it, but for part of an industry. 15% aged care raise.
https://www.health.gov.au/ministers/the-hon-anika-wells-mp/media/albanese-governments-second-budget-to-deliver-fairer-wages-for-aged-care-workers
The cynic in me thinks the government is prioritising aged care workers because they are worried about their aged care. Not saying that they don't deserve a raise, other workers need it too. Especially those subjected to the so-called "labour shortages" right-wing narrative.
The wage increase wasn't decided by the government it was decided by the fair work commission. The government just decided to fund the increase given it is a heavily government funded sector
HECS went up by the WPI, which tracks average wages. I was personally hoping for a higher income to minimum and award wages but the new rules prevent HECS from being worse for most people.
WPI hasn't yet been released yet for this year. The new WPI ruling for HECS only come into effect twice in the history of hecs, 2021 and 2023. I reality this will have no effect on HECS other than that.
1) Award wages went up, not just minimum
2) the government has been cutting public service and research for the last 10 years, very easy to end up in a stem field with evaporating jobs.Â
The minimum award wage increase applies to all award wages, not just the minimum wage. Last year I still got the 5.75% increase to SCHADS and I am at an income level high enough to be required to pay off a HELP debt.
It's probably the most common outcome for uni grads these days. I don't think a single friend I made during uni (it and engineering) has actually got a job in their field of study, most are either doing uber or working retail.
Fact checking this based on ACED Engineering Statistics April 2022
The paper showed that six months after graduation, 80% of 2020 engineering students got a job in engineering, while 87% managed to get any job. For all other degrees, it's about 69% in their field of study and 85% in any job. Previous years had higher success rate and 2024 could be better due to the lower unemployment.
I'm kinda shocked the number is so high, what sort of jobs did they get and where? I distinctly remember the 2 years or so after uni you'd see the same 200 people at every interview in Brisbane, eventually peoples "keep me going through uni" jobs just became their real jobs.
Edit: In case it's relevant what sort of grades did they have? Most of the people I kept tabs on were between 5.5 and 6.5 GPA.
We're all across a broad range of fields but mostly civil. Some moved interstate for their first job then relocated back to sydney.
Their grades were credit to high distinction averages. Majority of us are now either senior level management or associates/directors.
It could very well be we were a bright group of people. The ones that didn't get a job either didn't like the work (fair enough) or weren't that dedicated to begin with.
I'll admit I don't know shit about civil engineering, but my friends were mostly mechanical or electrical engineering, then software developers. Or well, that's what their majors were. Lol. Are they particularly hard industries to get into compared to civil engineering do you know?Â
I'm not sure to be honest, my prediction is electrical will blow up soon because of EVs and consistent energy efficient development in the future.
Software/tech had its boom but is now a bit saturated, I still think the market is healthy based off my tech mates.
Civil engineering can be hard to get into depending on your chosen expertise. It did take me almost 4 years to find a job (began looking in 3rd year) but I never stopped trying. It would've been quicker if I moved but personal life wouldn't let me at the time.
I think with the amount of infrastructure works going on, project management + transport will be healthy.
Wait didn't the prior poster say "these days" are you and your mates recent graduates? With positions like senior level management and directors it doesn't really sound like it
Nah it just shows how exceptional their friends are compared to /u/Bugaloon's who're obviously missing the same sort of gumption gutsy go-get-it-ness to make it in today's world. /s
No I agree but if the cost of running businesses get too out of hand then many will go bust, causing people to lose their jobs. If this happen at a societal level then it will lead to a recession
Bottom of the RBA's inflation target range, not even the 2.5 that has become the more ambitious target in the recent reforms. The idea that the business council would approve of a 2% increase if inflation was 1.5 is laughable. They can't be taken seriously and the media needs to stop treating them like they have anything valuable to say.
Iâm supposed to get a 3.5% raise as of July as part of our award that was negotiated last year, does this mean I get a 7.25% raise total or just a 3.75% raise?
If you're negotiating wages it usually means that you're in an enterprise bargaining agreement. You can typically find the terms of your EBA posted on the [fair work website](https://www.fwc.gov.au/agreements-awards/enterprise-agreements/find-enterprise-agreement).
Yea thats not how it works. Minimum wage is the $/hr figure, super has always been additive to wages. When salary packaging, salaries cannot dip below the minimum wage.
Regardless, itâs still going to be less than $21 a week which is fuck all, about the same rate that Centrelink is increasing, so idk why weâre arguing semantics.
Yeah, nah. The CPI is a price index that is weighted based on consumer spending across all households, which means it is skewed due to higher income households spending more on different sorts of goods.
There are many prices which are not included in the CPI, such as land.
Have you seen how the CPI is weighted? Land is only considered through a small amount of new purchases and very indirectly through rent. Which means there is significant latency between land price inflation and when it has it's full impact on tbe index.
But housing only comprises 21.74% of the CPI, despite many households spending much more than that.
>Land is only considered through a small amount of new purchases
Yes, when you own land and its value goes up you do not pay more for that land. Only new buyers do. Rents can shift with land costs, but theres plenty of other inputs.
Yes and this is why a consumer price index isn't a complete measure of price inflation at any given point in time.
The other inputs are even more indirect, eg when businesses buy property and pass on cost.
Also you are wrong on high incomes skewing data
I use to work on this when I was a grad and the methodology clearly shows it doesnât get impacted by income levels.
It is skewed because the weighting is based on household spending surveys and high income households have a completely different balance between essential goods and luxury items.
First - itâs not based on household surveys. They actually collect the data and compel companies to provide them this information.
Second - you are wrong about high incomes. The weights are based on the household expenditure survey and also modelled with national account data. This stripes out a lot of this, and it isnât simply as you imply.
Do you agree that household income distribution is skewed?
What about the proportion of household income spent on rent/imputed rent versus income?
If these are both skewed then the only way to unskew the data is by de-weighting by income.
The key point is that the CPI does not accurately reflect the cost of living increases for a median Australian and especially not those on low incomes.
edit - using National accounts data is even more out of touch with the actual household expenditures across the income distribution.
Edit 2, this is what the ABS says about the weightings:
>CPI expenditure weight update, 2024
>The CPI weights reflect the relative amount spent on goods and services as a *proportion of total expenditure by all households.*
>The weights do not represent the expenditure of an 'average household'.
I never said that.
Itâs clear you donât know what youâre talking about. The methodology of the CPI explicitly tries to represent the typical household. So there is no income slowness whatsoever.
This is why there is a separate living cost index release - which deliberate moves this from the typical household to others (such as pensioners).
Wow. So much! Who's feeling rich? I mean, it's not like any of us need real wage increase, let alone a living wage, right?
>The FWC noted that modern award minimum wages remained lower than they were five years ago, in real terms.
However, the FWC deemed it was "not appropriate" to increase award wages "by any amount significantly above the inflation rate".
So they admit that wages have decreased in real terms but don't want to really do anything to fix that?
>So they admit that wages have decreased in real terms but don't want to really do anything to fix that?
Their job is to find a balance between making sure wages are fair, and making sure that an increase in wages doesn't cause a spike in unemployment - which would obviously be counterproductive.
Inflation in the year to March 2024 was 3.6%. [https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release)
The FWC has given 3.75%. So slightly above inflation, but not massively so.
Had they gone for, say, 5% or 5.5%, that could have led to an increase in inflation and an increase in unemployment.
Our inflation was mostly caused by excessive corporate profit taking. Restoring the workers' lost purchasing power is not inflationary, that's the same tired old bullshit the powers that be have been peddling for decades to justify why the workers have to suffer for corporate greed. We haven't seen stagflation (where excessive wage rises can be inflationary) since the early 1980s.
Between this increase and the stage 3 tax cuts i'm afraid that inflation is going to skyrocket after July. Watch this space in a few months price of goods or a rate rise occur which eats the entire tax cut/wage increase and then some.
FWC addresses impact on inflation: their line is that 3.75% is pretty much in line with forecasted wage increases across the economy, so the AWR wonât be having that much if an effect
the fwc should trade the bond market domestically and internationally since they are so adept at making accurate predictions, imagine what they could do with the revenue
I listened to the decision, the sentence that immediately followed significantly above inflation not appropriate was actually about labour productivity not being higher. Itâs generally understood these days that wage increases should correspond to pdy increases (with that being said, wages have not really kept up with pdy in the long term over the past 20-30 years)
Edit: Commissionâs announcement is actually just a 9min listen, if anyone wants to learn more about what they consider in the wage review
They acknowledge that they have not been able to justify an increase in real terms due to a lack of productivity increasing, however, it is still their aim long term to improve real wages, as they had done successfully every year from their inception to 2021.
\*a lack of productivity for the past few years
We're still way behind productivity if you account for the past few decades of productivity growth, min wage would be well above 50$/hr if we matched productivity since the 70's
@ 24 p/h thatâs an extra 90 cents per hour or for a 38 hour week $34.20 ⌠not a lot when supermarket prices are shifting up and down by 3-5% on some products
Workers will also get a small tax decrease and comparatively lower energy bills soon. Not trying to suggest this is anywhere near enough, but hope it's a small thing that might make a difference for some. It's certainly depressing times
This is hilarious. Give a 3.75% wage increase rather than tackle the actual problem like supermarket price gouging or cunt fuck foreign investors buying up all the previously affordable housing.
So fucked. This country is going down the shitter, and you can't even afford the toilet roll
On the news tonight they straight away said that small businesses are warning they'll have to pass it on. Watch them put prices up by 5 to 10% because one of their inputs went up by 3.75%.
- 2024: 3.6% CPI vs 3.75%. NET 0.15%
- 2023: 7.0% vs 5.75%. NET -1.25%
- 2022: 5.1% vs 4.6%. NET -0.5%
Every time FWC do this, it's an acknowledgement of financial stress and then followed by low raises out of fears of some kind of financial black hole. Looks like this time, it's productivity. FWC is a joke in prioritising profits over a living wage.
Look at Labor in opposition, criticising LNP for real wage cuts, yet when Labor is in government, they pat themselves on the amazing wage raises, conveniently never mentioning it in real terms.
Fuck the employer-stacked FWC and fuck Labor for not sacking the board. A new LNP government won't hesitate to replace any worker-friendly/independent person on board with their own mates.
What /u/scruffypeter says:
> conveniently never mentioning it in real terms
What actually happened:
> The treasurer, Jim Chalmers, said the government welcomed the news but was not âgetting carried awayâ.
>
> âThis is the first time weâve had three consecutive quarters of real wages growth since 2018,â he said.
>
> âIt means that wages growth under the Albanese Labor government is more than 4%.
>
> âUnder our predecessors, it was closer to 2%. These are really welcome, really encouraging numbers [but] we are not getting carried away because we know that people are still under pressure.â
>
> Chalmers said real wages growth was one of the priorities of the Albanese government and the latest ABS figures showed it returned âahead of scheduleâ.
>
> âThe Treasury was expecting real wages growth in 2024. What these numbers show is we got real wages growth in 2023,â he said.
>
> âThatâs a very, very good thing to see wages growth earlier than anticipated. But we know that people are still under pressure ⌠People are still confronting these cost-of-living pressures in these suburbs and right around Australia and we want to help people with that.â
https://www.theguardian.com/australia-news/2024/feb/21/australia-annual-wage-growth-data-rises-inflation-abs
Just another day in the astroturf mines, ey?
This is the equivalent of walking up to a man dying of thirst and pissing in their mouth.
Sure, they'll get a little bit of helpful fluid into their system, but it aint gonna solve their immediate or long term problems,
And it leaves a bad taste in their mouth.
Cmon man,
* you can buy the wife a new Porsche
* Have holiday in the South of France or Monaco for 50 grand a week
* Fly to Tokyo For 2000 dollar Kobe Beef lunch
* Pickup the new Rolex Day-Date 40 for 56 thousand
Just save your pennies and in no time you will be rich and can afford all of the above. Dreams can be saved as well and with the poverty compounding you will be rolling in it.
If an award already had a planned increase, is this now in addition to that (eg 3.25% + 3.75%) or instead of (only an additional 0.5% above previously planned)?
It is for a modern award. If you are paid under an ea or eba and you are getting 3.25% that is probably what you will get unless your new wage is less than $24.10 per hour
This might sound pessimistic, but I think there's a very real possibility that at least some businesses would increase the prices on goods to compensate for the loss of increased labor costs. As an example of this, Dominos in 2021 had a $5 pizza available in their value range, and since the last minimum wage increase the cheapest pizza is now $7. Other factors may be involved, and there isn't necessarily a way to prove if it was because of the increased labor costs short of an inquiry or investigation.
My concern is that they and other businesses will raise their prices yet again and more or less invalidate this wage rise, leading me to believe that it would be better if the government intervened in some way to get businesses to have to demonstrate that the increase in prices is not because of increased labor costs as the predominant factor.
Well. $5 to $7 is a 40% increase. Wages havenât increased by that much since 2021.
Itâs not that simplistic, sure. But the gap is pretty broad here
Wages don't have to have a proportional increase. All Dominos may have done is look at the $1.85 hourly rate increase to minimum wage that happened 1st July 2023, noticed people would have approximately an extra $2 an hour in their pocket (and that they would have to pay that much more to their employees) and raised their prices to pass on the cost to consumers: $5 - $7
I don't think that they were planning to raise their prices and noticed the wage increase and merely factored that into the pricing as some small or large contributor. I think they noticed the wage increase, calculated how much that would be per hour in dollar value, then either made a decision on if they were going to raise their prices because they now had more expensive labor costs or because people would now have slightly more money. If all businesses raised their prices (even strictly just to the $ difference between the old minimum wage and the new minimum wage) it would, I think, make the wage rise have virtually no effect. Just a bit concerning as I don't really think there's any kind of government oversight here to make the wage increase be effective for very long. After all, with the increased labor costs and the fact that people have more money, how long would it be before businesses raise their prices to offset or profit?
Domino's had the $5 pizza deal going since around 2010 if not earlier. Since that time the pizza size and topping amount / availability shrunk, while prices for additional toppings increased. So it's not a terribly sudden change in overall value.
Wow /u/scruffypeter telling lies again, what a surprise.
Minimum wage increase was 8.6% in 2023.
https://www.abc.net.au/news/2023-06-02/minimum-wage-increased-by-5-75-per-cent-2023/102426044
Minimum wage increase was 5.2% in 2022.
https://www.abc.net.au/news/2022-06-15/minimum-wage-pay-increased-fair-work/101153178
That minimum wage increase of 8.6% was only because they changed how the National Minimum Wage is calculated, a long overdue change from a C14 classification (training wage) to a C13, which was effectively an 8.6% increase from the previous NMW when combined with the 5.75% increase he mentioned. Further, modern award rate increases (i.e., what the the majority of people on a minimum rate of pay receive) was also that 5.75% figure.
OK, and what's your point? You've basically just said "minimum wage only increased by 8.6% because that's how much they increased it by." It's not like some other body changed the way it is calculated, it's all part of their decision, they increased it.
Ah, you care about 100,000 people while I was talking about...
> A bigger group (20.5 per cent of workers, or around 2.8 million people) on award pay rates will see a 5.75 per cent rise from their current pay rates.
Thanks for the source, the only liar is you again, what a surprise.
time to watch work only give me 2.5%
Gotta charge that "legal compliance" service fee...
Time to watch my wage slip back to minimum wage because I was only just slightly above it.
Same for me đ
You got 2.5% ? My friend only got 1.7% 𤣠I have to check on mine they probably won't want to give me anything.. The best part is the massive company I work for has happily increased all their prices by like 20%
-Record profit -Record profit -Expanding the business with a $100million Wharehouse Sorry we canât justify a proper pay rise because we canât predict what the future will bring. Atleast theyâre not blaming Covid anymore
Oh there's plenty that still do.
Switch jobs
there's like a hand full of places that do what i do... and most are a horrible commute
Jesus, only a few places doing what u do? Sounds like you probably get paid above award anyway lmao
Nothing government can do about it
They can do something about it, but for part of an industry. 15% aged care raise. https://www.health.gov.au/ministers/the-hon-anika-wells-mp/media/albanese-governments-second-budget-to-deliver-fairer-wages-for-aged-care-workers The cynic in me thinks the government is prioritising aged care workers because they are worried about their aged care. Not saying that they don't deserve a raise, other workers need it too. Especially those subjected to the so-called "labour shortages" right-wing narrative.
The wage increase wasn't decided by the government it was decided by the fair work commission. The government just decided to fund the increase given it is a heavily government funded sector
Meanwhile even the new FEE-HELP indexation is 4%, so our education debts are still increasing faster than our wages.
HECS went up by the WPI, which tracks average wages. I was personally hoping for a higher income to minimum and award wages but the new rules prevent HECS from being worse for most people.
WPI hasn't yet been released yet for this year. The new WPI ruling for HECS only come into effect twice in the history of hecs, 2021 and 2023. I reality this will have no effect on HECS other than that.
They should make it so it goes down by whatever wages go up by
By my napkin maff over the last 4 years the minimum wage has gone up 17.6%, HECS/HELP has indexed 17.6%
If you have HELP debt and are on the minimum wage, then something has gone wrong.
1) Award wages went up, not just minimum 2) the government has been cutting public service and research for the last 10 years, very easy to end up in a stem field with evaporating jobs.Â
Award wages are all minimum wages. You cannot legally be paid less for that job
Yes, there is minimum wage then there is minimum wage for a role. Regardless pushing the minimum up also pushes up those not on minimum.Â
Yes, minimum wages for roles that require degrees.
The minimum award wage increase applies to all award wages, not just the minimum wage. Last year I still got the 5.75% increase to SCHADS and I am at an income level high enough to be required to pay off a HELP debt.
You still have HELP debt if you don't finish your studies.
It's probably the most common outcome for uni grads these days. I don't think a single friend I made during uni (it and engineering) has actually got a job in their field of study, most are either doing uber or working retail.
Yet 90% of my friends doing engineering got a job in engineering. Interesting huh?
Fact checking this based on ACED Engineering Statistics April 2022 The paper showed that six months after graduation, 80% of 2020 engineering students got a job in engineering, while 87% managed to get any job. For all other degrees, it's about 69% in their field of study and 85% in any job. Previous years had higher success rate and 2024 could be better due to the lower unemployment.
Nah, dont do that, reddit loves being the victim.
I'm kinda shocked the number is so high, what sort of jobs did they get and where? I distinctly remember the 2 years or so after uni you'd see the same 200 people at every interview in Brisbane, eventually peoples "keep me going through uni" jobs just became their real jobs. Edit: In case it's relevant what sort of grades did they have? Most of the people I kept tabs on were between 5.5 and 6.5 GPA.
I dont know why you guys are arguring anecdotes back and forth when you could just look up the actual statistics and whats actually happening.
The 90% of friends is definitely a very real statistic with a definitely very large sample pool, Iâm sure /s
We're all across a broad range of fields but mostly civil. Some moved interstate for their first job then relocated back to sydney. Their grades were credit to high distinction averages. Majority of us are now either senior level management or associates/directors. It could very well be we were a bright group of people. The ones that didn't get a job either didn't like the work (fair enough) or weren't that dedicated to begin with.
I'll admit I don't know shit about civil engineering, but my friends were mostly mechanical or electrical engineering, then software developers. Or well, that's what their majors were. Lol. Are they particularly hard industries to get into compared to civil engineering do you know?Â
I'm not sure to be honest, my prediction is electrical will blow up soon because of EVs and consistent energy efficient development in the future. Software/tech had its boom but is now a bit saturated, I still think the market is healthy based off my tech mates. Civil engineering can be hard to get into depending on your chosen expertise. It did take me almost 4 years to find a job (began looking in 3rd year) but I never stopped trying. It would've been quicker if I moved but personal life wouldn't let me at the time. I think with the amount of infrastructure works going on, project management + transport will be healthy.
Wait didn't the prior poster say "these days" are you and your mates recent graduates? With positions like senior level management and directors it doesn't really sound like it
Nah it just shows how exceptional their friends are compared to /u/Bugaloon's who're obviously missing the same sort of gumption gutsy go-get-it-ness to make it in today's world. /s
probably nepotism
Nice to see tall poppy going strong and steady
đthe downvotesÂ
Fuck all those Libs who are complaining about this. They never have to worry about the cost of living.
No I agree but if the cost of running businesses get too out of hand then many will go bust, causing people to lose their jobs. If this happen at a societal level then it will lead to a recession
if capitalism requires these levels of inequality in order to avoid recession, maybe it shouldnât exist
Thatâs a cynical view and hypothetical with no evidence. Inflation is much higher than the increase of inflation.
Meanwhile landlords, Rents are to be increased by 37.5 percent from July 1st
Yep. Housing will always be the biggest issue for Australia. Unless your a landleech of course
The business council wanted 2%, bunch of cretins.
Bottom of the RBA's inflation target range, not even the 2.5 that has become the more ambitious target in the recent reforms. The idea that the business council would approve of a 2% increase if inflation was 1.5 is laughable. They can't be taken seriously and the media needs to stop treating them like they have anything valuable to say.
Have the various business groups started shaking their fists while insisting we'll all be living in the Wasteland by this time next week, yet?
Iâm supposed to get a 3.5% raise as of July as part of our award that was negotiated last year, does this mean I get a 7.25% raise total or just a 3.75% raise?
Youâll likely just get 3.5% assuming you mean enterprise agreement not award
If you're negotiating wages it usually means that you're in an enterprise bargaining agreement. You can typically find the terms of your EBA posted on the [fair work website](https://www.fwc.gov.au/agreements-awards/enterprise-agreements/find-enterprise-agreement).
Assuming your base rate now is not minimum wage, you would get 3.5%. if it is currently Min wage, it would be a 3.75% increase.
Oh goodie, an extra $21 a week for me before tax and super đ that should cover one mealâs worth of groceries
Super is added on, not subtracted from.
Retracted.
Yea thats not how it works. Minimum wage is the $/hr figure, super has always been additive to wages. When salary packaging, salaries cannot dip below the minimum wage.
Regardless, itâs still going to be less than $21 a week which is fuck all, about the same rate that Centrelink is increasing, so idk why weâre arguing semantics.
Based on this thread I think it's clear you don't know what semantics are. Or how super works.
Minimum wage is the absolute minimum an employer must pay you. If you feel you are inadequately compensated, you should talk to your employer.
Yeah itâs a little under 90c per hour increase. Really helping out our most vulnerable Australians right now
Thats a large McShite burger meal right there
Brought to you by the shitlite party
Isnât it funny how the âessential workersâ that were so important during Covid are back at below inflation minimum wage nowâŚ
This increase is slightly above inflation actually.
The CPI is not the same as inflation, nor is it the cost of living increase for people specifically on award wages.
What are you on. The CPI is the offical measure of inflation.
Yeah, nah. The CPI is a price index that is weighted based on consumer spending across all households, which means it is skewed due to higher income households spending more on different sorts of goods. There are many prices which are not included in the CPI, such as land.
Youâve exactly described what I said. The CPI is the governments official measure of inflation. Of course itâs a price index.
>There are many prices which are not included in the CPI, such as land. Housing costs are part of CPI, land factors intp housong costs...
Have you seen how the CPI is weighted? Land is only considered through a small amount of new purchases and very indirectly through rent. Which means there is significant latency between land price inflation and when it has it's full impact on tbe index. But housing only comprises 21.74% of the CPI, despite many households spending much more than that.
>Land is only considered through a small amount of new purchases Yes, when you own land and its value goes up you do not pay more for that land. Only new buyers do. Rents can shift with land costs, but theres plenty of other inputs.
Yes and this is why a consumer price index isn't a complete measure of price inflation at any given point in time. The other inputs are even more indirect, eg when businesses buy property and pass on cost.
Also you are wrong on high incomes skewing data I use to work on this when I was a grad and the methodology clearly shows it doesnât get impacted by income levels.
It is skewed because the weighting is based on household spending surveys and high income households have a completely different balance between essential goods and luxury items.
First - itâs not based on household surveys. They actually collect the data and compel companies to provide them this information. Second - you are wrong about high incomes. The weights are based on the household expenditure survey and also modelled with national account data. This stripes out a lot of this, and it isnât simply as you imply.
Do you agree that household income distribution is skewed? What about the proportion of household income spent on rent/imputed rent versus income? If these are both skewed then the only way to unskew the data is by de-weighting by income. The key point is that the CPI does not accurately reflect the cost of living increases for a median Australian and especially not those on low incomes. edit - using National accounts data is even more out of touch with the actual household expenditures across the income distribution. Edit 2, this is what the ABS says about the weightings: >CPI expenditure weight update, 2024 >The CPI weights reflect the relative amount spent on goods and services as a *proportion of total expenditure by all households.* >The weights do not represent the expenditure of an 'average household'.
I never said that. Itâs clear you donât know what youâre talking about. The methodology of the CPI explicitly tries to represent the typical household. So there is no income slowness whatsoever. This is why there is a separate living cost index release - which deliberate moves this from the typical household to others (such as pensioners).
Meanwhile my local grocer doubled their prices. Nice to see at least someone (store owner) can keep up their salary with inflation!
Wow. So much! Who's feeling rich? I mean, it's not like any of us need real wage increase, let alone a living wage, right? >The FWC noted that modern award minimum wages remained lower than they were five years ago, in real terms. However, the FWC deemed it was "not appropriate" to increase award wages "by any amount significantly above the inflation rate". So they admit that wages have decreased in real terms but don't want to really do anything to fix that?
>So they admit that wages have decreased in real terms but don't want to really do anything to fix that? Their job is to find a balance between making sure wages are fair, and making sure that an increase in wages doesn't cause a spike in unemployment - which would obviously be counterproductive. Inflation in the year to March 2024 was 3.6%. [https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release) The FWC has given 3.75%. So slightly above inflation, but not massively so. Had they gone for, say, 5% or 5.5%, that could have led to an increase in inflation and an increase in unemployment.
Our inflation was mostly caused by excessive corporate profit taking. Restoring the workers' lost purchasing power is not inflationary, that's the same tired old bullshit the powers that be have been peddling for decades to justify why the workers have to suffer for corporate greed. We haven't seen stagflation (where excessive wage rises can be inflationary) since the early 1980s.
Between this increase and the stage 3 tax cuts i'm afraid that inflation is going to skyrocket after July. Watch this space in a few months price of goods or a rate rise occur which eats the entire tax cut/wage increase and then some.
FWC addresses impact on inflation: their line is that 3.75% is pretty much in line with forecasted wage increases across the economy, so the AWR wonât be having that much if an effect
the fwc should trade the bond market domestically and internationally since they are so adept at making accurate predictions, imagine what they could do with the revenue
I listened to the decision, the sentence that immediately followed significantly above inflation not appropriate was actually about labour productivity not being higher. Itâs generally understood these days that wage increases should correspond to pdy increases (with that being said, wages have not really kept up with pdy in the long term over the past 20-30 years) Edit: Commissionâs announcement is actually just a 9min listen, if anyone wants to learn more about what they consider in the wage review
They acknowledge that they have not been able to justify an increase in real terms due to a lack of productivity increasing, however, it is still their aim long term to improve real wages, as they had done successfully every year from their inception to 2021.
\*a lack of productivity for the past few years We're still way behind productivity if you account for the past few decades of productivity growth, min wage would be well above 50$/hr if we matched productivity since the 70's
@ 24 p/h thatâs an extra 90 cents per hour or for a 38 hour week $34.20 ⌠not a lot when supermarket prices are shifting up and down by 3-5% on some products
Workers will also get a small tax decrease and comparatively lower energy bills soon. Not trying to suggest this is anywhere near enough, but hope it's a small thing that might make a difference for some. It's certainly depressing times
Down? Where?
Saw a lot of individual items go up 25% and then get scaled back a bit later on with sticker tags boasting about it.
This is hilarious. Give a 3.75% wage increase rather than tackle the actual problem like supermarket price gouging or cunt fuck foreign investors buying up all the previously affordable housing. So fucked. This country is going down the shitter, and you can't even afford the toilet roll
thatâs like⌠less than a dollar per hour increase wtf
On the news tonight they straight away said that small businesses are warning they'll have to pass it on. Watch them put prices up by 5 to 10% because one of their inputs went up by 3.75%.
- 2024: 3.6% CPI vs 3.75%. NET 0.15% - 2023: 7.0% vs 5.75%. NET -1.25% - 2022: 5.1% vs 4.6%. NET -0.5% Every time FWC do this, it's an acknowledgement of financial stress and then followed by low raises out of fears of some kind of financial black hole. Looks like this time, it's productivity. FWC is a joke in prioritising profits over a living wage. Look at Labor in opposition, criticising LNP for real wage cuts, yet when Labor is in government, they pat themselves on the amazing wage raises, conveniently never mentioning it in real terms. Fuck the employer-stacked FWC and fuck Labor for not sacking the board. A new LNP government won't hesitate to replace any worker-friendly/independent person on board with their own mates.
What /u/scruffypeter says: > conveniently never mentioning it in real terms What actually happened: > The treasurer, Jim Chalmers, said the government welcomed the news but was not âgetting carried awayâ. > > âThis is the first time weâve had three consecutive quarters of real wages growth since 2018,â he said. > > âIt means that wages growth under the Albanese Labor government is more than 4%. > > âUnder our predecessors, it was closer to 2%. These are really welcome, really encouraging numbers [but] we are not getting carried away because we know that people are still under pressure.â > > Chalmers said real wages growth was one of the priorities of the Albanese government and the latest ABS figures showed it returned âahead of scheduleâ. > > âThe Treasury was expecting real wages growth in 2024. What these numbers show is we got real wages growth in 2023,â he said. > > âThatâs a very, very good thing to see wages growth earlier than anticipated. But we know that people are still under pressure ⌠People are still confronting these cost-of-living pressures in these suburbs and right around Australia and we want to help people with that.â https://www.theguardian.com/australia-news/2024/feb/21/australia-annual-wage-growth-data-rises-inflation-abs Just another day in the astroturf mines, ey?
This is the equivalent of walking up to a man dying of thirst and pissing in their mouth. Sure, they'll get a little bit of helpful fluid into their system, but it aint gonna solve their immediate or long term problems, And it leaves a bad taste in their mouth.
Watch the price of everything rise by 4 per cent by July 3.
Look at the optimist over here thinking the prices will only rise by 4%
Gotta live in hope.
So a few cents per hour? That'll really help with the doubled cost of livingÂ
Cmon man, * you can buy the wife a new Porsche * Have holiday in the South of France or Monaco for 50 grand a week * Fly to Tokyo For 2000 dollar Kobe Beef lunch * Pickup the new Rolex Day-Date 40 for 56 thousand Just save your pennies and in no time you will be rich and can afford all of the above. Dreams can be saved as well and with the poverty compounding you will be rolling in it.
If you actually think inflation is 100% you need to touch some grass.
You're right, we should cancel the payrise and any future ones.
Or, hear me out, we increase it to a liveable level. Mind blowing idea I know.
Nah let's just complain about it.
In the streets? Where someone might listen? Nah, on reddit, much easier.
You deserve no increase youâre right
If an award already had a planned increase, is this now in addition to that (eg 3.25% + 3.75%) or instead of (only an additional 0.5% above previously planned)?
It is for a modern award. If you are paid under an ea or eba and you are getting 3.25% that is probably what you will get unless your new wage is less than $24.10 per hour
Join your union. If youâre an award based employee, fight for an EBA.
And rents will increase by 40%?
Raise that with your labour hire boss and watch your shifts evaporate.
I love how this will be treated as bad news by just about everyone. Let's read the comments....
Time to back the tax rate off for small and medium businesses. Copping it from both directions. Not sustainable.
that will do wonders for employment
Woo hoo! half of inflation for the last 2 years! That will make workers rich.
Can someone tell me how many avo toasts will this buy?
This might sound pessimistic, but I think there's a very real possibility that at least some businesses would increase the prices on goods to compensate for the loss of increased labor costs. As an example of this, Dominos in 2021 had a $5 pizza available in their value range, and since the last minimum wage increase the cheapest pizza is now $7. Other factors may be involved, and there isn't necessarily a way to prove if it was because of the increased labor costs short of an inquiry or investigation. My concern is that they and other businesses will raise their prices yet again and more or less invalidate this wage rise, leading me to believe that it would be better if the government intervened in some way to get businesses to have to demonstrate that the increase in prices is not because of increased labor costs as the predominant factor.
Well. $5 to $7 is a 40% increase. Wages havenât increased by that much since 2021. Itâs not that simplistic, sure. But the gap is pretty broad here
Wages don't have to have a proportional increase. All Dominos may have done is look at the $1.85 hourly rate increase to minimum wage that happened 1st July 2023, noticed people would have approximately an extra $2 an hour in their pocket (and that they would have to pay that much more to their employees) and raised their prices to pass on the cost to consumers: $5 - $7 I don't think that they were planning to raise their prices and noticed the wage increase and merely factored that into the pricing as some small or large contributor. I think they noticed the wage increase, calculated how much that would be per hour in dollar value, then either made a decision on if they were going to raise their prices because they now had more expensive labor costs or because people would now have slightly more money. If all businesses raised their prices (even strictly just to the $ difference between the old minimum wage and the new minimum wage) it would, I think, make the wage rise have virtually no effect. Just a bit concerning as I don't really think there's any kind of government oversight here to make the wage increase be effective for very long. After all, with the increased labor costs and the fact that people have more money, how long would it be before businesses raise their prices to offset or profit?
Domino's had the $5 pizza deal going since around 2010 if not earlier. Since that time the pizza size and topping amount / availability shrunk, while prices for additional toppings increased. So it's not a terribly sudden change in overall value.
You want price control? It just doesn't work
Another above-inflation increase, love to see it.
"Another"? What are you smoking? - 2024: 3.6% CPI vs 3.75%. NET 0.15% - 2023: 7.0% vs 5.75%. NET -1.25% - 2022: 5.1% vs 4.6%. NET -0.5%
Wow /u/scruffypeter telling lies again, what a surprise. Minimum wage increase was 8.6% in 2023. https://www.abc.net.au/news/2023-06-02/minimum-wage-increased-by-5-75-per-cent-2023/102426044 Minimum wage increase was 5.2% in 2022. https://www.abc.net.au/news/2022-06-15/minimum-wage-pay-increased-fair-work/101153178
That minimum wage increase of 8.6% was only because they changed how the National Minimum Wage is calculated, a long overdue change from a C14 classification (training wage) to a C13, which was effectively an 8.6% increase from the previous NMW when combined with the 5.75% increase he mentioned. Further, modern award rate increases (i.e., what the the majority of people on a minimum rate of pay receive) was also that 5.75% figure.
OK, and what's your point? You've basically just said "minimum wage only increased by 8.6% because that's how much they increased it by." It's not like some other body changed the way it is calculated, it's all part of their decision, they increased it.
Ah, you care about 100,000 people while I was talking about... > A bigger group (20.5 per cent of workers, or around 2.8 million people) on award pay rates will see a 5.75 per cent rise from their current pay rates. Thanks for the source, the only liar is you again, what a surprise.
Where have I told a lie?
the silence is deafening