Labor demands higher wages for public servants

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Shadow financial services minister Stephen Jones says the federal government should stimulate the economy and wages growth by increasing salaries in the public sector. He argues that the government is a major employer and it should “lead by example” in boosting wages. From The Australian:

Mr Jones said Australians needed a pay rise and the government should “lead by example” by boosting the wages of federal workers. “The government has got a role to play in this. The government is a big employer,’’ he said…

Senator Cormann slapped down the move, arguing that federal employees were getting “reasonable and affordable” pay increases…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.