Governments across Australia should use the power of their $600 billion in annual spending to improve working conditions and lift wage growth, the Transport Workers' Union says.
The economic footprint of federal, state and local governments in Australia has been revealed in a report prepared for the TWU by the Australia Institute's Centre for Future Work.
Union national secretary Tony Sheldon said government spending should be directed to improving standards, and employers should be penalised if they breach rules during government projects or when providing government services.
"It should be used to ensure that workers can support their families and give a much-needed boost to wage growth to bolster our economy," Mr Sheldon told the union's national council in Adelaide on Tuesday.
The union boss said employers in the new digital economy often had a "catch us if you can" mentality, and loose regulations allowed them to undermine labour standards and wages.
"Delivery riders at UberEats, Foodora and Deliveroo work below minimum rates and are not even paid at all during shifts," Mr Sheldon said.
South Australian Opposition Leader Peter Malinauskas said the disparity between wage growth and profits was at its worst since federation and questioned the policy priorities of the federal government.
"The idea that, in an environment with declining wages and growing profits, we would be pursuing company tax cuts as the number-one priority is patently absurd," Mr Malinauskas said.
He said politicians don't refer to wage growth often enough when tackling cost of living pressures such as increases in fuel or groceries.
Centre for Future Work director and report author Jim Stanford said his investigation found governments could and should use their immense leverage to lift standards, restore wage growth and enhance the economy.
"Our review of recent labour market performance in Australia has confirmed the need for government engagement to support better work and rising wages," the report said.
"The sad reality is that the present alignment of labour market forces is not conducive to the traditional Australian version of 'a fair go'."
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