EBA Pay Rises to match any CPI increase in excess of 3%
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 not great, as economists continue to talk up the economy, your Union has spoken with Australia Post to seek safeguards to members’ wages against any upward trends that may see the Consumer Price Index (CPI), which measures the cost of living, exceed the rate of EBA10 pay rises.
Australia Post have agreed Australia Post that wages paid under the EBA will not be paid at a rate less than CPI.
If CPI rises above 3% during the life of EBA10, members wage increases will at least match the rate of CPI for the preceding 12-month period.
This agreement guarantees that members will not be left behind being unable to keep up with the pace of inflation as the economy continues to rebound from the effects of the COVID-19 pandemic.
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 CWU member, ask them to join today.
In the meantime, if you require any further information, please contact us directly on 9387 3512
Yours In Unity
Secretary Communication Workers Union Victorian P+T branch