EBAs signal more wage pain for workers

New data from the Attorney’s General Department (AGD) shows that 1.24 million workers in Australia’s private sector are now covered by enterprise agreements, down from 1.44 million a year ago.

Just 10.9% of private sector workers now have enterprise agreements, compared with about 25% in 2010.

Specifically, wage increases in new private sector agreements has remained steady at 2.6% for the last three quarters:

By contrast, wage increases in new public sector wages fell by 0.3% to 2.1% in the June quarter, with total wage growth falling 0.2% to 2.4%.

For all 7,708 EBAs currently in force, wage growth was steady at 2.6%:

The next chart plots the quarterly changes in EBA wage increases, and suggests that overall wage growth will remain soft:

The AAWI for agreements approved in the June quarter 2021 was 2.4 per cent, down from 2.6 per cent in the March quarter 2021, and down from 2.8 per cent in the June quarter 2020…

The AAWI for agreements current (not expired or terminated) as at 30 June 2021 was 2.6 per cent, equal to the March quarter 2021, and equal to the June quarter 2020.

In particular, the EBAs data suggests that private sector wage growth will remain sluggish:

The AAWI for private sector enterprise agreements approved in the June quarter 2021 was 2.6 per cent, equal to the March quarter 2021, and down from 3.0 per cent in the June quarter 2020.

Not much joy here for Australian workers, with decent wage growth to remain evasive.

Full report here.

Unconventional Economist

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