RBA board needs union representation

ACTU secretary Sally McManus has dismissed RBA governor Phil Lowe’s fears of a wage-price spiral as a “boomer fantasy”, given Australia abandoned centralised bargaining and wage indexation decades ago:

“We’re not achieving 3.5 per cent, let alone 5 per cent, let alone 7 per cent. And so to think somehow that the system is going to deliver across-the-board pay increases of 5 or 7 per cent is boomer fantasy land,” she said.

“Not realising that whole system would be incapable of delivering that. We do not have centralised bargaining in this country. It would not be possible for that to happen.”

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