Shipping Australia has released a report looking ahead to predict how Australia’s industrial landscape, supply chain, and economy could be impacted by the Secure Jobs, Better Pay Act.
The report states that due to collective bargaining, wages for workers are expected to go up and minimum wages across the sector are likely to increase.
However, the report warns that higher wages may have negative outcomes for the industry in the long term.
As wage costs increase, employers may increase prices in an effort to preserve margins and profitability, which can drive inflation higher. In turn, high costs of living from inflation can cause workers to seek higher pay, resulting in an inflationary loop.
The report also quotes research which finds that higher wage costs result in a higher chance that workers will lose their jobs.
For more information, read the full report here.