Below inflation pay rises set to become the norm warns ACCI

November 10, 201410:45 am227 views

An influential business group is pushing for wage restraint in the wake of the latest Defence pay deal.

The Defence Remuneration Tribunal has approved a 1.5 per cent pay rise for uniformed Defence staff which is below inflation.

The Prime Minister, Tony Abbott, has indicated the public service will face “tight pay restraint” in future negotiations.

Kate Carnell from the Australian Chamber of Commerce and Industry (ACCI) said there is also a need for private sector employees to accept pay offers below consumer price inflation (CPI).

“Businesses generally are suffering. They’re not seeing their profit or their turnover go up at the same rate of CPI and on that basis simply can’t afford to pay the employees the CPI increases that we’ve seen in the past unless the business has become more productive,” she argued.

ACCI says the latest Defence staff wage deal sends a clear message to private sector employees looking for significant pay increases.

Kate Carnell said the era of above inflation pay rises was finished.

“It’s about time now that employees understood that the capacity to have CPI every year with no productivity increases is simply over,” she said.


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