Enterprise agreements lodged in the past 3 months have helped recover some lost income for workers.
The latest figures from the Fair Work Commission reveal good wage growth is continuing among enterprise agreements with the 3-month weighted average of annual wage growth hitting a high of 4.2%.
Enterprise agreements historically have delivered higher wages than other forms of wage setting, however, over the past 2 years, the opposite has been the case. This has meant that there have been some catch-up required given the growth of inflation.
In July and September, enterprise agreements lodged with the FWC consistently averaged wage growth above 4%. The most recent fortnightly data showed a slowing to just an average of 3.5%. The past fortnight was driven largely by agreements in the finance sector which covered 34,125 workers. These 3 agreements had an average wage growth over the next 3 years of 3.4%.
While there will be attempts to paint the figures as evidence of the need for higher interest rates to slow wage growth we need to realise that even the 4.2% average is well below the latest inflation growth of 5.4%. Workers have been the victims of inflation and they deserve to begin recapturing the lost real incomes.
The data shows that enterprise agreements do deliver strong results for workers. The government’s reform of the industrial relations enabling workers to collectively bargain will deliver fairer and better returns for workers,
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Historically high corporate profits must take a hit if workers are to claw back real wage losses from the inflationary crisis, according to new research from the Australia Institute’s Centre for Future Work.
Enterprise agreements are now delivering strong wage growth and good outcomes for workers.
Stronger wage growth will deliver more money to workers and also improve the budget position buy delivering more tax revenue