As expected, the chair of the Migration Council and CEO of the Australian Industry Group (AIG), Innes Willox, has blasted yesterday’s minimum wage decision from the Fair Work Commission (FWC), claiming it will cause inflation to soar and hike mortgage rates:
“[The] Annual Wage Review decision of the Fair Work Commission will add fuel to the inflation fire,” Innes Willox, Chief Executive of the national employer association Ai Group, said.
“There is a major risk that the 5.2% per cent increase that has been awarded to the National Minimum Wage, with increases of between 4.6% and 5.2% to award rates, will fuel inflation and lead to even higher interest rates; even more hardship for people with mortgages, personal loans or credit card debts; and add substantially to the risk of unemployment and underemployment – particularly for unskilled employees. The cost increase will be difficult to absorb for businesses that are already struggling to cope with big increases in material and energy costs, interest rate rises, supply chain disruptions and labour shortages…
