Banks are an inflation agent
If there is any momentum to wage inflation in Australia, finance employers may be energising it.Commonwealth Bank this week lifted its improved pay offer to staff covered by the enterprise agreement. The bank's new offer is 3.75 per cent, up 0.25 percentage points on their previous offer.This revised CBA pay offer is in line with Westpac's recent deal. Bankwest staff at CBA are subject to a separate pay deal.At NAB many staff are getting a pay rise of four per cent.AustralianSuper staff will receive an extra 4.5 per cent in pay and superannuation.The economy wide average is two per cent.There might be productivity offsets to explain the rises, but the vulnerability of the banks to discontented staff might be the main reason for the pay rates being offered by the industry.