Thursday, June 08, 2017

Support the Unions

Australian wages had stagnated at a record low, growing just 1.9% annually. With the cost of living rising at 2.1%, it meant real wages have declined by 0.3% over the past year.

Union membership has fallen from 40% of the workforce to around 15%, and yet inequality is at a 75-year high.

There is a clear link between declining union membership, the lowering of workers’ bargaining power, and today’s low wage growth. The International Monetary Fund, no great supporter of labour unions, has acknowledged the links between low levels of unionisation on the one hand and low wages, inequality and increasing income for those at the top on the other

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