Saturday, September 24, 2022

5.2 % WAGE BOOST FOR AUSTRALIA 's LOWEST PAID HAD TO HAPPEN - DESPITE BUSINESS LOBBY PROTEST

Business lobby groups were always going to oppose the 5.2% wage increase for Australia's lowest paid workers, because they are the advocate for business, not workers rights and entitlements. 

Of course, the very contentious argument which was put forward by them, just prior to the Albanese government's announcement that it would push ahead with fulfilling a core election promise of delivering this wage increase, is that it's going to only succeed in further fueling inflation, making goods even more expensive again, and in general, diminishing business confidence.

What business groups seem to be forgetting is that if wages increase, logically speaking the average battler who earns 5.2% gross more than they were, is now going to have more disposable income to purchase retail goods, and logically as well, that means that a wide spectrum of businesses, both retail and wholesale, will directly benefit by having more people with more disposable income to purchase goods. 

Do the equation - businesses and companies having to pay 5.2% gross extra to their workers will lose out a bit - yes. It is a bit of slug on them. 

But with inflation spiralling upwards, the fact is that Australia's lowest payed workers will forego purchasing non essential items if they don't have that spare $20 or $50 after that have payed for all the essential items they can't do without, and unavoidables, like electricity, council rates and their vehicle registration.

For example, they won't buy that pair of new shoes that they really could do with, they will walk past the shoe shop until their shoes are totally ragged. 

Putting more money in the wallet of Australia's working class in such a time of hyperinflation is necessary. Because if it didn't happen, within a year or two there would be a new generation of poverty dwellers springing up in Australia. 

Business groups and employers have to consider the benefits of the wage increase, it is a fair to say that business in a way will be  subsidising Australia's lowest paid workers to their mild disadvantage, but on the flipside, more disposable income across the board means more spending. It is the fairest deal and outcome for all, in these "tough times".

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