Coca-Cola Amatil has this week closed a pay deal that will see wages frozen for current Victorian warehouse employees and
new employees will be paid 38 percent less for carrying out the same job. A spokesperson for Coke said the deal will bring wages closer to market rates and restore the business to a sustainable earnings growth.
Coke is not the only Australian employer straining under our high cost economy. Holden workers had agreed on a three year pay freeze in a futile
attempt to keep manufacturing in Australia and many public servants also face the prospect three year wage freezes.
Data from the Australian Bureau of Statistics (ABS) show real wage growth started to fall at the start of this year. Wage growth has been lower than inflation for the first two quarters this calender year – the worst in 17 years – as higher paying jobs are lost and existing employees are fearful of negotiating pay rises.
But falling wages should actually be a welcome relief for Australia, helping to increase our global competitiveness and retain much needed jobs. While trade exposed export markets such as manufacturing steal most of the limelight, many administrative, IT and back office jobs are also being lost offshore as larger corporations try to contain wage pressures and retain sustainable business units.
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