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Trends in enterprise bargaining

Posted on : Friday, 27 October 2017

The Average Annualised Wage Increase (AAWI) for the June Quarter 2017 continued to show downward wage trends across the community in line with other income data. Enterprise Agreements (EAs) approved by the Fair Work Commission (FWC) in the June Quarter 2017, indicated that the AAWI for both thePrivate Sectorand forAll Sectorsdecreased by 0.1%. ThePublic Sector, on the other hand, showed an increase from the previous Quarter (+0.1%).

 

Collective Agreements approved in the Quarter

March Quarter 2017 (%)

June Quarter 2017 (%)

Change in AAWI % points

All Sectors

2.7%

2.6%

-0.1%

Private Sector

2.7%

2.6%

-0.1%

Public Sector

2.4%

2.5%

+0.1%

 

The calculated overall wages growth for the June Quarter increase of 2.6% was based on 628 EAs (which had quantifiable wage increases) covering 70,401 employees out of 846 EAs (covering 114,147 employees). A total of 218 EAs covering 43,746 had across the board wage increases that could not be quantified because, for example, "different rates given to different classifications".

 

Enterprise Agreement wage trends for Agreements approved in respective Quarters

 

Quarter

Private Sector

All Sector Agreements

Public Sector

June 2015

3.1%

3.1%

3.0%

September 2015

3.0%

3.0%

3.0%

December 2015

2.9%

3.0%

3.2%

March 2016

2.9%

2.7%

2.6%

June 2016

2.9%

3.0%

3.0%

September 2016

3.4%

3.3%

3.0%

December 2016

3.0%

3.1%

3.2%

March 2017

2.7%

2.4%

2.7%

June 2017

2.6%

2.6%

2.5%

 

The Building and Construction Industry continued to have the highest increase of 3.7% in the June Quarter followed by Profession, Technical, etc, (3.5%) and Electricity, Gas, Water & Waste (3.2%).

 

Agreements Approved by FWC

Dec 2014

March 2015

June 2015

Sept 2015

Dec  2015

March 2016

June 2016

Sept 2016

Dec  2016

March 2017

June 2017

Construction

3.8%

4.3%

3.8%

3.7%

3.8%

3.9%

3.8%

5.9%

5.2%

4.2%

3.7%

Private Sector

 

3.3%

 

3.0%

 

3.1%

 

3.0%

 

2.9%

 

2.9%

 

2.9%

 

3.4%

 

3.0%

 

2.7%

 

2.6%

 

Agreements approved in Quarter by State/Territory (June 2017)

 

Quarter/State

ACT

NSW

NT

QLD

SA

TAS

VIC

WA

ALL

 

 

 

 

 

 

 

 

 

 

March 2017

2.2%

2.5%

2.6%

3.0%

2.7%

2.3%

3.2%

1.9%

2.7%

June 2017

2.6%

2.5%

3.7%

2.6%

2.2%

2.7%

2.9%

2.0%

2.6%

 

Note that 18 Agreements approved by the FWC in the June Quarter 2017 were linked to CPI compared to 26 EAs in the previous Quarter for single-enterprise non-greenfields Agreements (22 -December 2016 and 25 - September 2016). EAs linked to the minimum wage saw 51 EA's compared to 40 in the March 2017 Quarter, approved by the FWC (59 and 68, respectively in previous Quarters).


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