Albo ‘loose unit’: PM

ANTHONY Albanese’s desire for wages to increase by 5.1 per cent has business leaders, economists and the Prime Minister sounding the alarm, with Scott Morrison lashing him as a “loose unit”.

On Tuesday, the Opposition Leader refused to back the ACTU’s revised claim for a 5.5 per cent increase because it was higher than the inflation rate but also said “people can’t afford to go backwards”.

Later, he was asked if he supported a 5.1 per cent increase to keep pace with inflation, to which he replied: “Absolutely.”

Mr Morrison in response branded Mr Albanese a “complete loose unit”.

“Anthony Albanese’s … thoughtlessness on this would actually make inflation worse, it would make interest rates rise even higher, it would threaten the strong wage growth we have had in employment, and ultimately it would force small businesses … potentially out of business altogether,” Mr Morrison said.

And while industry leaders are making similar warnings, Mr Albanese isn’t backing down, saying it was “nonsense” that a 5.1 per cent wage increase would hurt interest rates, because Labor had a plan to ensure productivity was at a rate that would keep inflationary pressures under control.

“I don’t want people to be left behind. People are doing it really tough – the cost of living, the cost of everything is going up but their wages aren’t,” he said.

Australian Industry Group chief executive Innes Willox said wage growth over 5 per cent is unsustainable.

“We already have the highest minimum wage, we’re the champion of minimum wage, and unions want to put them up by another 5.5 per cent – that’s another $42 a week,” Mr Willox said.

“Of course that then flows through to every other wage negotiation that business has … not every business (can afford it).

“There are hundreds of thousands of small businesses and for many of them, this would be a backbreaker, it’s not sustainable for them to be asked to pay this.

“It’s just not going to work for small and medium businesses. It would be (the final nail in the coffin). We have to be very careful.”

The ACTU last week revised its annual wage review claim from 5 per cent to 5.5 per cent to ensure workers did not go backwards amid a “cost-ofliving crisis”.

“A 5.5 per cent increase is what is now needed just to ensure people tread water,” ACTU secretary Sally McManus said.