Bank boss’ shocking minimum wage sledge

Speaking with RN Breakfast’s Patricia Karvelas on Thursday morning, NAB CEO Ross McEwan discussed Australia’s cost of living crisis as well as interest rates and wages growth.

However, things took a turn when the ABC host asked his opinion on a push to raise the minimum wage, which is currently around $42,000 per year, or $21.38 an hour, with the Fair Work Commission debating a potential rise while unions are demanding a seven per cent increase.

Karvelas asked whether that was a “reasonable figure”, and if it should be “passed on to people on other awards as well”.

“I think those who are sitting on that minimum wage, if they’re really not happy with their job, should start looking around,” he said.

“We’ve got unemployment at 3.5 per cent, there are jobs out there, and I think people, if they’re not happy, should quietly find another role.

“Minimum wage … is exactly that, it’s the minimum wage, and I would have thought most employers are paying well above the minimum wage just to get great people working in their business.”

Karvelas then doubled down on her question, asking whether those who weren’t able to get another job “for whatever reason” should see an increase.

“If everybody keeps up with inflation, it’s going to keep inflation going,” Mr McEwan replied.

“It comes back to we’ve got to get productivity into our businesses, then wages can go up higher than they are today.”

Mr McEwan was then asked how he could justify NAB’s record half-year profit, which was up by 17 per cent, which Karvelas described as “staggering given the experiences of everyday Australians” at the moment.

He appeared to agree with the poor optics of the huge profit during such tough economic conditions, but insisted the good times would be short-lived for the banking sector, explaining it was enjoying a boost from rising interest rates which would drop over the course of the profit cycle.

“It was a big profit, it was our best to date, but the market realises things will get tougher in banking from here on in,” he said.

Unsurprisingly, Mr McEwan’s minimum wage comments struck a chord among Aussies, especially after it was pointed out on social media that his total yearly salary package is $6.3 million.

“Who does he think will care for people if all the carers get a better job?” one Twitter user asked, while another said: “This reinforces that people in these top jobs need to get back in touch with reality. Maybe they should live on minimum wage for a while.”

“Who’s going to be the Essential Service Workers, if we all take NAB CEO Ross McEwan’s advice and go and get a better job?” another questioned, with another adding: “Ross will look around in his aged care home and wonder where all the careers have gone. This is a disgraceful message from a bank. Need I say, ripped off customers with shonky fees and charges.”

“Imagine being so removed from reality to assume that everybody has the same choices,” another commented, while yet another blasted the CEO for “not even pretending to care”.

Mr McEwan’s comments come hot on the heels of the Australian Bureau of Statistics’ latest Wage Price Index report released on Wednesday, which revealed Australian wages rose by 0.8 per cent in the March quarter – falling short of market expectations – to be 3.7 per cent higher than a year ago.

“While Australian wages are growing at their fastest annual pace in a decade, the reality is that the purchasing power of Australian incomes has crashed,” Callam Pickering, APAC economist at Indeed, said of the latest figures.

“The disconnect between wage growth and inflation is devastating for households across the country, with cost of living pressures easily outstripping wage gains.

“Adjusted for inflation, Australian wages have fallen by 3.2 per cent over the past year and by 7.2 per cent since their peak. More than a decade of hard-won wage gains – our blood, sweat and tears – lost over the course of just one year.

“Unless you’ve received a promotion or changed employer recently, there is a good chance that your salary buys a lot less now than it did a year ago.”

And according to AMP Australia’s deputy chief economist Diana Mousina, real wages growth, which takes into account changes in inflation, “is still negative”.