You have to wonder whether Iain Ross and his Fair Work Commission colleagues have actually read anything the Reserve Bank has said recently about the Australian economy and why household income growth has been so low in recent years.
Yesterday, the commission decided to give the 20+% of Australian workers on minimum wage a 3% wage increase. That sounds good given the inflation rate in the March quarter was just 1.3% -- and unlikely to reach 2% this year, or maybe even next. But it's less than the 3.5% the Commission gave minimum wage workers last year. And it it will do nothing to lift the currently official level of wages growth, which has been stuck at 2.3% for several quarters, courtesy of the government's policy of wage stagnation.