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Wage trends in enterprise bargaining – increases in December Qtr 2017

Posted on : Thursday, 10 May 2018

The latest Government data on wage movements in Enterprise Agreements (EAs) has shown a reversal to recent downward trends in the Average Annualised Wage Increase (AAWI). EAs approved by the Fair Work Commission (FWC) in the December Quarter 2017, show that the AAWI for all Sectors to have increased with the Public Sector increasing by 0.3% with the Private Sector increasing (0.2%). Overall (All Sectors) - 0.3% increase.

 


Collective Agreements approved in the Quarter

September Quarter 2017 (%)

December Quarter 2017 (%)

Change in AAWI % points

All Sectors

2.2%

2.5%

+0.3%

Private Sector

2.4%

2.6%

+ 0.2%

Public Sector

2.0%

2.3%

+ 0.3%

 

The calculated overall wages growth for the December Quarter increase of 2.5% was based on 782 EAs (which had quantifiable wage increases) covering 120,990 employees out of 1047 EAs approved by the FWC (covering 149,891 employees). 265 EAs covering 28,901 employees had "across the board wage increases that could not be quantified because, for example, different rates given to different classifications, increases based on individual performance or business unit performance".

 

Enterprise Agreement wage trends for Agreements approved in respective Quarters



Quarter

Private Sector

All Sector Agreements

Public Sector

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%

September 2017

2.4%

2.2%

2.0%

December 2017

2.6%

2.5%

2.3%

 

The Building and Construction Industry had the highest increase (4.7%) followed by Rental, Hiring, Real Estate (3.2%) and Professional, Scientific, Technical (3.0%).

 


Agreements Approved by FWC

June 2015

Sept 2015

Dec  2015

March 2016

June 2016

Sept 2016

Dec  2016

March 2017

June 2017

Sept 2017

Dec
2017

Construction

3.8%

3.7%

3.8%

3.9%

3.8%

5.9%

5.2%

4.2%

3.7%

3.1%

4.7%

Private Sector

 

3.1%

 

3.0%

 

2.9%

 

2.9%

 

2.9%

 

3.4%

 

3.0%

 

2.7%

 

2.6%

 

2.4%

 

2.6%

 

 

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

 


Quarter/State

ACT

NSW

NT

QLD

SA

TAS

VIC

WA

ALL

Sept. 2017

2.5%

2.3%

2.5%

2.4%

2.3%

1.5%

3.1%

2.1%

2.2%

Dec. 2017

2.3%

3.4%

1.3%

2.6%

2.7%

2.9%

2.9%

1.8%

2.2%

 

Note that 23 Agreements approved by the FWC in the December Quarter 2017 were linked to CPI compared to 12 EAs (revised) in the September 2017 Quarter for single-enterprise non-greenfields Agreements (19 -June 2017 and 26 - March 2017). EAs linked to the minimum wage saw 40 EA's compared to 38 in the September 2017 Quarter, approved by the FWC (50 and 40 respectively in previous Quarters).