Wed. Aug 10th, 2022

Union boss Sally McManus has doubled down on her claim the Reserve Bank of Australia (RBA) governor is “out of touch” with reality, maintaining the organization is “stuck in the 70s”.

It comes after RBA governor Philip Lowe on Tuesday warned pay rises should be capped at 3.5 per cent to avoid a 1970s -style wage-price spiral.

This prompted McManus to say he was living in a “boomer fantasy land”.

She defended the comments on Today this morning.

“They are more stuck in the 70s in terms of thinking that people trying to get wage increases is going to lead to a wage price spiral,” she said.

“Like that was a unique circumstance in the 70s. It is not like that now.

“You can see how hard it is, even to get pay rises that are half inflation.

“The point was, I felt as though he was out of touch with what is going on and how hard it is for working people now as opposed to the 1970s.”

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