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The management and employees of Eastwood Enterprises Ltd (based in Hobart) are locked in a heated dispute over wage levels. The current average annual wages are $87,600 (March 2019) which is up from the $70,700 it was in March 2009. Note that each year there was an annual increase of $1,690.
Consequently, Management are claiming they have passed on increases roughly equivalent to the Hobart CPI each year and therefore Adjusted Wages have continually increased. On the other hand, the employees are counter claiming that the purchasing power of their wages has actually decreased.
The industrial umpire, Fair Work Australia, has engaged you to summarise what the arguments of each party would be and to provide a recommendation whether to increase wages or not. Please provide reasons and calculations for your answer.
This Question is an Australian question.
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