Securing your hard-won pay rises in our rebounding economy
As you may have seen in the news, our economy is beginning to bounce back. As unexpected as every aspect of the COVID-19 pandemic has been for the impacts on our way of life and the way that we work, the nation’s economic outlook throughout this period has become equally unpredictable.
Across many parts of the country, the rebound has taken markets and economists by surprise. As our cities emerge from various states of lockdowns, the housing market continues to perform strongly, rents are increasing and employers are on a hiring spree.
These and other economic factors have seen the path for core inflation lifted to 2.25% for the end of this year, up from earlier predictions of 1.75%, and Head Economist at ANZ, David Plank, predicts inflation to rise to 2.5% no later than the first quarter of 2023.
This outcome and further predictions are still less than the 3% per annum wage increases provided for in EBA10 and 3% is the rate that the Reserve Bank of Australia (RBA) maintains that wages across the country need to grow by to keep inflation in the target band. Despite EBA10 wage rises meeting this threshold, the RBA doesn’t expect to see the rest of industry catch up to those wage levels until 2023 – putting our members, deservedly, ahead of the game.
Although the chances of inflation exceeding the already market-leading pay rises secured under EBA10 are slim, as economists continue to talk up the economy, your Union has moved quickly to engage with Australia Post to seek safeguards to members’ wages against any freak upward trends that may see the Consumer Price Index (CPI), which measures the cost of living, exceed the rate of EBA10 pay rises.
And we are incredibly excited to report that today we have reached agreement with Australia Post that will do just that. We have secured certainty to the pay rises provided to members under EBA10 which will ensure that wages paid under the EBA will not be increased at a rate less than CPI.
Put simply, if by the slimmest of chances, CPI rises above 3% during the life of EBA10, our members’ wages will not be increased by just 3%, but will at least match the rate of CPI for the preceding 12-month period.
This important outcome guarantees that members will not be left behind being unable to keep up with the cost of living, as our economy continues to rebound from the effects of the COVID-19 pandemic.
This is an incredible outcome to be reached outside the bargaining period and one which would certainly not have been secured without the strong density of our Union’s membership across Australia Post.
It is important that we continue to grow in strength at Australia Post, to continue delivering the best possible outcomes for our members and their families. If you work with somebody who is not yet a CEPU member, ask them to join today.
In the meantime, if you require any further information, please contact your State Branch Officials.
