It’s a tricky position for RBA fat cats:
Reserve Bank staff have rejected a proposed 10.5 per cent pay rise that unions slammed as inadequate, creating an uncomfortable situation for Michele Bullock as she calls for wage restraint across the economy.
The Australian Financial Review can reveal the RBA’s staff rejected the proposed three-year enterprise bargaining agreement in a ballot that closed on Wednesday, with 57 per cent of employees voting no.
…Under the deal, the RBA’s junior and mid-level staff would have received a 4 per cent pay rise this year, another 3.5 per cent in 2024 and 3 per cent in 2025.
Here’s what the last RBA statement said:
Conditions in the labour market remain very tight, although they have eased a little. Job vacancies and advertisements are still at very high levels, although firms report that labour shortages have lessened. With the economy and employment forecast to grow below trend, the unemployment rate is expected to rise gradually from its current rate of 3½ per cent to around 4½ per cent late next year. Wages growth has picked up in response to the tight labour market and high inflation. At the aggregate level, wages growth is still consistent with the inflation target, provided that productivity growth picks up.
Clearly, RBA management is aware of the conundrum, given they have offered pay rises basically in line with their economic forecasts.
Staff should be equally aware of the bank’s position as a public policy organ and take the deal.
Captain Bullock should get them across the line by offering to have her million-dollar pay.
