CTU Economist and Policy Director, Bill Rosenberg said that the low wage boost for the year to March 2010 denote that real wages fell. Employees will be worried that the boost of 1.5% in the Labor Cost Index for the current year was considerably behind inflation of 2.0%.
Rosenberg thinks that the approach with which the Government is taking care of the scenario, it is totally wrong.
The Government is dropping employment rights on matters such as dismissal appeal rights, meal breaks, holidays and accident compensation entitlements. Employers and the Government need to focus their attention towards investment in decent jobs and policies that will be capable of lifting wages for example a higher minimum wage.
Australian standard weekly income increased by 5.0% in the year to November 2009. New Zealand's typical weekly income boosted by 4.5% in the year to December and increased by 2.5%, in the March 2010 year. Australia's Wage Price Index increased by 2.9% in the year to December 2009. New Zealand's LCI increased by 1.8% in the same period and increased by 1.5% in the year to March 2010.
Standard paid hours worked for each week rose by 0.7% in the quarter, which depicted that standard weekly income increased by 0.4%, when both wage rates and hours worked are taken into consideration.
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