WAGES – AUSTRALIA

States sign up for new competition agenda to lift wages

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Original article by Shane Wright
The Age – Page: Online : 8-Mar-24

NSW Treasurer Daniel Mookhey has hosted a meeting of federal, state and territory governments that has been as acting as a possible starting point for new competition reforms that will in turn lead to higher wages. Many economists believe that the recent decline in global and Australian productivity is partly due to a lack of competitive pressures, which force companies to look at new ways to lift output or better utilise their staff. One issue that the meeting looked at was the growing use of non-compete and no-poach clauses in workplace contracts or agreements, with recently released research from the Australian Bureau of Statistics finding that 47 per cent of businesses imposed at least one form of restraint clause on their workers.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

Keep lid on the minimum wage, business urges

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Original article by Michael Read
The Australian Financial Review – Page: 5 : 27-Feb-24

Australian Chamber of Commerce & Industry CEO Andrew McKellar says the inflation outlook means it is likely to seek a lower increase in the minimum than the 3.5 per cent rise that it advocated in 2023. The Fair Work Commission increased the minimum wage and award rates by 5.75 per cent in 2023, which was the largest increase in more than a decade. Jarden’s chief economist Carlos Cacho says the minimum wage ruling could be a key factor in the outlook for wages in 2024.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. FAIR WORK COMMISSION, JARDEN AND COMPANY

Latest wage growth tops 4pc

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Original article by Ewin Hannan
The Australian – Page: 4 : 30-Jan-24

Analysis of data from the Fair Work Commission shows that workers received an average pay rise of four per cent in enterprise agreements that were lodged in the second half of 2023. ACTU secretary Sally McManus says stronger wage growth in enterprise agreements demonstrates the value of joining a union; however, she adds that more needs to be done to achieve real wage growth during the cost-of-living crisis. Meanwhile, the FWC has released a discussion paper on hybrid working arrangements and employees’ right to disconnect from their workplace outside of designated working hours.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, ACTU

Bullock: Pay growth risks higher interest rates

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Original article by Michael Read
The Australian Financial Review – Page: 1 & 4 : 22-Nov-23

Reserve Bank of Australia governor Michele Bullock has warned that reducing the inflation rate is the "crucial challenge" facing the domestic economy over the next several years. She also said that rapidly rising labour costs are another challenge for the RBA in restoring inflation to its target range of 2-3 per cent, and stressed that the recent growth in wages will not be sustainable unless productivity improves. Recent data shows that annual wages growth reached a 14-year high of four per cent in the September quarter. Meanwhile, the minutes of the RBA’s board meeting for November show that economic data will determine whether monetary policy is further tightened. Financial markets have priced in a five per cent chance of an interest rate rise in December.

CORPORATES
RESERVE BANK OF AUSTRALIA

Virgin ground crews set to strike over pay deal

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Original article by Ayesha de Kretser
The Australian Financial Review – Page: 3 : 24-Oct-23

The Transport Workers’ Union has applied to the Fair Work Commission to undertake a ballot on protected industrial action by Virgin Australia’s ground staff. The TWU’s assistant national secretary Nick McIntosh says Virgin has some of the lowest pay and conditions across the sector. The union has rejected Virgin’s proposed three-year wage deal, which includes a pay rise of between three per cent and 12.8 per cent in the first year, and three per cent in the following two years. Virgin’s cabin crew are also seeking a pay rise.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED, TRANSPORT WORKERS’ UNION, AUSTRALIA. FAIR WORK COMMISSION

Pay rises surge, closing in on inflation levels

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 4 : 26-Sep-23

Data from the Fair Work Commission shows that 174 enterprise agreements were submitted for approval in the two weeks to 25 August. The average annual increase in these workplace agreements was 4.7 per cent. Pat Bustamante of Westpac notes that the higher wage increases in new enterprise agreements follows the FWC’s decision to increase the minimum wage by 5.75 per cent from 1 July. She adds that high inflation could become entrenched if wages continue to grow at 4-4.7 per cent mark without productivity improvements.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC

Dispute exposes labour hire laws legal nightmare

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 4 : 30-Aug-23

Australian Industry Group CEO Innes Willox says a union dispute at Opal Australian Paper shows that the federal government’ proposed ‘same job, same pay’ policy could be a legal nightmare for employers. The Australian Manufacturing Workers’ Union alleged that a labour hire worker was paid less than the direct workforce at Opal’s Maryvale paper mill in Victoria. A union deal required contractors to receive ‘no less favourable’ wages and conditions than direct employees. The Fair Work Commission assessed a range of disputed conditions before ruling in Opal’s favour, including overtime, casual rates, allowances and bonuses.

CORPORATES
OPAL AUSTRALIAN PAPER, AUSTRALIAN MANUFACTURING WORKERS’ UNION, AUSTRALIA. FAIR WORK COMMISSION, THE AUSTRALIAN INDUSTRY GROUP

RBA warns job market may be about to sour

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Original article by Michael Read, Tess Bennett
The Australian Financial Review – Page: 4 : 16-Aug-23

The minutes of the Reserve Bank of Australia’s board meeting for August show that it considered increasing the cash rate to 4.35 per cent. However, indications that the jobs market may at a "turning point" are among the reasons why the board opted for a second successive monthly pause. The RBA cited factors such as a small rise in the official underemployment rate, a fall in hiring intentions and improved labour availability as signs that the jobs boom may be coming to an end. Meanwhile, economists say weaker-than-expected wages growth will strengthen the case for the cash rate to remain on hold for an extended period.

CORPORATES
RESERVE BANK OF AUSTRALIA

IR laws to help workers by closing loopholes

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Original article by Ewin Hannan
The Australian – Page: 2 : 16-Aug-23

Data from the Australian Bureau of Statistics show that wages increased by 0.8 per cent in the June quarter, the same pace as the two previous quarters. Wages growth eased to 3.6 per cent in the year to June. Workplace Relations Minister Tony Burke says that after 11 quarters of wages not keeping up with prices, the moderating inflation rate has caught up with wages growth. He adds that while the federal government’s first tranche of industrial relations reforms in 2022 were aimed at lifting wages across the board, the second tranche is aimed at closing loopholes that affect the wages of individual workers. Burke says the reforms will have a "very modest" economy-wide impact on wages.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF EMPLOYMENT AND WORKPLACE RELATIONS

RBA admits it underpaid staff $1.15m

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Original article by Michael Read
The Australian Financial Review – Page: 4 : 15-Jun-23

PwC has completed its review of wage underpayments at the Reserve Bank of Australia. The review was commissioned after the central bank apologised to affected staff. PwC has found that 1,173 current and former RBA employees had been underpaid a total of $1.15 million, excluding interest. The RBA’s head of human resources Karlee Hughes has indicated that more than 20 per cent of affected staff had been underpaid by $150 or less; she added that the RBA takes paying its staff correctly very seriously, and it is "genuinely sorry" that the underpayment occured.

CORPORATES
RESERVE BANK OF AUSTRALIA, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD