Even with unemployment low, wages fall behind cost of living. Can politicians get you a pay rise?

Wages growth in Australia has been behind most other industrialised countries over the past decade due to the erosion of worker rights, a new report says.  (ABC News: Sam Ikin)

For some time, our federal politicians have argued that wages will grow when unemployment is lower, and they will moderate when unemployment is higher.

But with unemployment now at a record low of 4 per cent, why are wages growing less than inflation, and can they grow much faster without policy intervention?