[Greens-Media] Wages fall as profits rise - both by 10% of GDP

[Twomey, Chris (Sen R. Siewert)]

Wages fall as profits rise - both by 10%

An analysis of wages versus profits as a proportion of GDP show a very
clear trend - with wages consistently dropping over the last 20 years
while profits steadily increased.

"Claims that real wages have improved under the Howard government need a
closer look," according to Senator Rachel Siewert.

Wages as a proportion of GDP have dropped from 56% in 1975 to 46.6% in
2004, while profit share has increased from 14.5% to 23.4% over the same
period. These figures follow on back of the ACIRRT report which shows
the 14% wage rise claims are misleading.

"This demonstrates that the full benefits of economic growth are not
being realised by workers," said Senator Siewert, Greens spokesperson on
industrial relations.

We are being told that reducing workers' rights and conditions will
promote economic growth and lead to higher wages," she said, "But the
evidence suggests that removing the safety net and reducing minimum
wages will lead to a smaller pay packet for average Australians."

Last week Employment Minister Kevin Andrews let slip that the real
target of IR reform was a New Zealand-style wages drop of around 20%.

A table showing the yearly percentage figures for profit and wages as a
percentage of GDP is available by email from chris.twomey at aph.gov.au


> Chris Twomey
> Personal Advisor
> Senator Rachel Siewert
Australian Greens Senator for Western Australia
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