Wages rises in new pay deals average 4 per cent

Fair Work Commission data shows growth in average pay rises over the second half of 2023.

Average pay rise in enterprise agreements have increased to four per cent.

Pay rises in new enterprise agreements covering more than half a million workers averaged 4 per cent over the second half of 2023, analysis of Fair Work Commission data shows.

Fortnightly commission reports detailing new agreements lodged between July and December last year show average wage increases were 4 per cent or above for 16 weeks, spiking at 4.8 per cent in September.

According to the latest data released on Monday, average pay rises in agreements lodged in the first two weeks of December were 4.2 per cent, up from 3.9 per cent in the previous fortnight.

The 273 agreements included 10 rail industry agreements with average pay rises of 5.8 per cent and 25 educational services deals with average wage increases of 4.5 per cent.

Reserve Bank governor Michele Bullock in November flagged concerns with the acceleration in wages growth, saying it was not sustainable without a lift in productivity

ACTU secretary Sally McManus on Monday said stronger wage growth in enterprise agreements showed that “it pays to join your union and that the Albanese government’s collective bargaining reforms from 2023 are getting wages moving”.

“While the pay of working people is heading in the right direction, more needs to be done to achieve real wage growth during a cost-of-living crisis,” she said.

“That’s why it’s so important for the parliament to pass the remainder of the Closing Loop­holes Bill, which will boost the pay, conditions, and job security of casual and gig workers.”

Meanwhile, the commission has asked employers and unions for their views on award changes relating to working from home and the right of workers to disconnect as part of its latest review of awards.

In a discussion paper released on Monday, the commission cited research suggesting a hybrid work model encompassing two or three days working from home did not reduce productivity and was now the preference of most office workers.

“For some, the increase in opportunities to work remotely has expanded employment opportunities, reduced time spent commuting and provided more flexibility to balance work and caring responsibilities,” the paper says.

Recent Australian Bureau of Statistics data indicates 36.9 per cent of workers in August last year regularly worked from home, down slightly from 2022 levels.“Hybrid or remote work can also encompass challenges for employers and employees,” the paper says.

“For example, it can make it more difficult to facilitate spontaneous collaboration and support workers to build skills through on-the-job mentoring.

“Improved flexibility as to when and where people work may also create ambiguity as to when workers can disconnect from work, which can impact on wellbeing.”

Working from home provisions were inserted temporarily into the clerks awards during the Covid pandemic but are not in modern awards.

The paper says recent changes to how and when work is performed by employees has led to a phenomenon described as “availability creep”, where employees feel the need to always be available to answer emails and calls.