By Zac de Silva in Canberra

Unions are planning a year-long wages blitz, threatening strike action if workers aren’t granted above-inflation pay rises to keep up with soaring costs.

The Australian Council of Trade Unions claims workers are more prepared to go on strike than ever before to secure real wage increases.

ACTU secretary Sally McManus said significant increases to the cost of housing meant union members would push for pay rises of at least four per cent a year.

“A huge amount of your budget is being eaten up by housing costs, and people are really in a situation where their only option to get ahead is wage increases,” Ms McManus told ABC TV on Thursday.

“Young people are saying that we’ve had enough of this, and they are really pushing for better deal at work,” she said.

The ACTU is flagging wage fights across the board, including over the minimum wage and through workplace agreements.

In 2025, minimum wages increased 3.5 per cent – halfway between the demands of businesses who wanted a smaller rise, and unions who wanted a larger one.

Business groups have long argued productivity gains are needed before they can deliver significant pay rises, but Ms McManus said that was not the case.

“Every time a business says that they’re deflecting,” she said.

“(Businesses) have not been investing in training up workers… or new equipment and capital, which are the things that lead to productivity increases.”

Ms McManus said rising costs were driving a generational gap in living standards, which pay rises would help address, but warned broader action was needed to make housing more affordable.

She urged the government to pare back the capital gains tax concession for property investors – a move Labor is reportedly considering.

“The government understands that there’s a deep unfairness where if you work full time, that is not getting you to a position where you can ever buy a house,” Ms McManus said.