Reserve Bank Governor Philip Lowe has blown the whistle on the Morrison Government's direct role in suppressing the wages of working people.
The Morrison Government has capped the pay of people who provide vital public services to the people of Australia, preventing the many of the nation's law enforcement, scientists, administrators and health professionals from negotiating fair pay rises.
Testifying before the House of Representatives economics committee, Dr Lowe said:
"Caps on wages growth in public sectors right across the country are another factor contributing to the subdued wage outcomes… My view is that a further pickup in wages growth is both affordable and desirable."
Wages in the public sector have a large impact on overall wages in the economy.
The comments come after Finance Minister Mathias Cormann admitted earlier this year in an interview that low wages growth was a "deliberate design feature" of the Coalition's economic policy.
As stated by ACTU Secretary Sally McManus:
"Scott Morrison and his Government are deliberately keeping wages low, and they're breaking our economy and causing desperation for many people.
"The Reserve Bank Governor testified to parliament today that the Government's own position on the pay of people working for it is keeping wages down for everyone.
"Many working people are struggling to live, and this also affects local businesses.
"We already know that this is a deliberate design feature of the Government's plan - they have admitted it.
"They need a better plan that puts working people first.
"We are calling once again for Scott Morrison to side with working people in this fight for fair pay. He must remove the cap that the RBA says is damaging our economy, reverse the penalty rate cuts and get people's wages moving again."
