WAGES – AUSTRALIA

Unions to pursue above-CPI pay rises

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Original article by Ewin Hannan
The Australian – Page: 4 : 6-Nov-25

The Australian Manufacturing Workers Union’s national secretary Steve Murphy has accused the Reserve Bank of being "out of touch" after it forecast that inflation will remain above its target range for at least six months and there will be negative real wages growth in 2026. He says the RBA blames workers, but "profit-driven price hikes" and "corporate greed" are the real problem. Murphy adds that despite the forecast increase in the inflation rate, the AMWU will be able to achieve real wages growth in upcoming negotiations for new enterprise agreements. The Electrical Trades Union’s national secretary Michael Wright says it also will continue to deliver real pay rises for its members.

CORPORATES
AUSTRALIAN MANUFACTURING WORKERS’ UNION, ELECTRICAL TRADES UNION, RESERVE BANK OF AUSTRALIA

Gender-gap pay rulings a game-changer

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 3 : 17-Apr-25

The Fair Work Commission has recommended large pay rises for workers covered by industry awards in sectors that have predominatly female workers. The ACTU says the FWC’s recommendations will directly increase the wages of an estimated 175,000 workers, as well as 335,000 workers whose agreements ae underpinned by awards. Amongst other things, the FWC’s expert panel has recommended a pay rise of to 28.4 per cent for early childhood educators, up to 31.2 per cent for psychologists and up to 14.1 per cent for pharmacists. The proposed wage rises would be phased in over several years, and are in addition to any increase in the minimum wage from July.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, ACTU

Unions build case for same job, same pay

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Original article by Euan Black
The Australian Financial Review – Page: 7 : 21-Jan-25

The Mining & Energy Union and the Australian Manufacturing Workers’ Union are testing the federal government’s ‘same work, same pay’ laws in the Federal Court. They want workers at three BHP mines who are employed either by labour hire firms or BHP units and who are doing the same jobs as people directly employed by BHP to be paid the same amount, with the federal court hearing the difference in pay between those directly employed by BHP and those who are not being but are performing the same role can be as much as $49,000 a year. Should BHP lose the case, its estimates suggest it will have to pay an extra $1.3 billion a year.

CORPORATES
MINING AND ENERGY UNION, AUSTRALIAN MANUFACTURING WORKERS’ UNION, FEDERAL COURT OF AUSTRALIA, BHP GROUP LIMITED – ASX BHP

Wages claims put state budgets at risk: S&P

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Original article by Michael Read, James Hall
The Australian Financial Review – Page: 1 & 4 : 14-Jan-25

S&P Global Ratings analyst Martin Foo has warned that demands for big public sector wage rises could more negatively impact on state governments’ budget bottom lines that treasurers had forecast. Foo notes that some recent above-average pay rises in the public sector could have a flow-on effect, with other unions likely to seek to match them. Foo adds that changes to some state governments’ public sector wage caps may also have contributed to higher wage claims. AMP’s chief economist Shane Oliver says state governments have limited ‘wiggle room’ to increase public sector wages.

CORPORATES
S&P GLOBAL RATINGS, AMP LIMITED – ASX AMP

Wages claims put state budgets at risk: S&P

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Original article by Michael Read, James Hall
The Australian Financial Review – Page: 1 & 4 : 14-Jan-25

S&P Global Ratings analyst Martin Foo has warned that demands for big public sector wage rises could more negatively impact on state governments’ budget bottom lines that treasurers had forecast. Foo notes that some recent above-average pay rises in the public sector could have a flow-on effect, with other unions likely to seek to match them. Foo adds that changes to some state governments’ public sector wage caps may also have contributed to higher wage claims. AMP’s chief economist Shane Oliver says state governments have limited ‘wiggle room’ to increase public sector wages.

CORPORATES
S&P GLOBAL RATINGS, AMP LIMITED – ASX AMP

ACTU’s new IR marching orders

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Original article by Ewin Hannan
The Australian – Page: 1 & 6 : 2-Oct-24

ACTU secretary Sally McManus has revealed the union movement’s priorities if the federal government is re-elected for a second term. Amongst other things, unions will target junior pay rates for people who are 18-20 years of age and work in sectors such as retail, fast-food and pharmacy. The Fair Work Commission will hear the shop assistant union’s application to abolish junior pay rates next year, and McManus says the ACTU will lobby the government to legislate on the issue if the FWC rejects it. She says the loading rate for casual workers also needs to be reviewed, while the minimum standards for gig-economy workers should be extended to freelancers.

CORPORATES
ACTU

Business warning on public sector pay surge

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Original article by Greg Brown, Jack Quail
The Australian – Page: 1 & 4 : 14-Aug-24

Data from the Australian Bureau of Statistics shows that overall wages growth was steady at 4.1 per cent in the year to June. Public sector wages increased by 3.9 per cent in the 12 months to June, compared with 3.1 per cent a year earlier; private sector wage growth was 4.1 per cent, up from 3.9 per cent in the previous 12 months. Meanwhile, public sector wages increased by 0.9 per cent in the June quarter, compared with 0.7 per cent growth for private sector wages. Australian Industry Group CEO Innes Willox has expressed concern that public sector wages are rising at a time when private companies are trying to moderate wages growth to reduce inflationary pressures.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, THE AUSTRALIAN INDUSTRY GROUP

Australian real wage growth among worst in OECD

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Original article by Rachel Clun
The Age – Page: Online : 10-Jul-24

A report from the OECD has concluded that real wages in Australia are still 4.8 per cent below pre-pandemic levels. The Paris-based organisation’s latest employment outlook also shows that Australia is one of 16 member countries whose real incomes have fallen since the end of 2019. The report notes that although real wages have risen in 2024 for the first time in nearly three years, Australian households are still under pressure due to the cost-of-living crisis. Treasurer Jim Chalmers says the report shows that the federal government’s policies to increase real wages are making a "meaningful difference".

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY

Warning on jobs rate if productivity stalls

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Original article by Ewin Hannan
The Australian – Page: 4 : 15-May-24

The 2024 budget papers indicate that productivity has grown for two consecutive quarters, and that it is expected to continue to pick up if economic conditions improve. However, Treasury has warned that if productivity does not improve as expected, it could lead to a rise in unemployment. Meanwhile, the budget papers have forecast that annual wages growth will decline from 4 per cent to 3.25 per cent over the next two financial years before rising to 3.5 per cent in the subsequent years of the forward estimates, while lower forecast inflation will result in real wages growth of 0.5 per cent each year over the forward estimates.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

3pc wage rises may be new norm: NAB

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Original article by Michael Read
The Australian Financial Review – Page: 4 : 23-Apr-24

Annual productivity growth averaged 1.2 per cent in the decade prior to the COVID-19 pandemic, but National Australia Bank believes that productivity growth is likely to average 0.5 per in coming years. The mining investment boom was a major driver of pre-pandemic productivity growth, and NAB senior economist Taylor Nugent contends that returning to this level of growth would require a substantial rise in non-mining productivity. NAB warns that lower productivity growth means that workers should expect annual pay increases of no more than three per cent in coming years.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB