ACTU Secretary Sally McManus warns that the Reserve Bank is out of touch and living in 'boomer fantasy land' if it thinks workers can afford real cuts to their wages.
"I know that [RBA] board doesn't have anyone there who participates in negotiations for wages or the wage-setting system from the workers side," McManus said.
"And that’s a pretty big problem if you’re, you know, making assumptions or trying to understand trying to analyse how things work."contributing to the current high inflation, Ms McManus argued that inflation "has absolutely nothing to do with wages". "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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