Australia: Latest data on enterprise bargaining wages trends – September 2017 quarter

The ‘Trends in Federal Enterprise Bargaining’ report for July-September 2017 was released by the Department of Employment on 10 January 2018.

If you have enterprise agreement negotiations coming up in 2018, this data can be useful for benchmarking.

The latest report reveals that:

  • across the country, Victoria recorded the highest average annual wages increase (AAWI) with 3.1% for the quarter, compared to Tasmania with the lowest at 1.5%;
  • the retail industry had the largest drop in AAWI this quarter (1.3%);
  • as a general trend, wage growth continues to slide across both the private and public sectors when comparing enterprise agreements approved during the September quarter with both the last quarter (June 2017) and the same quarter in the previous year (September 2016).

Table 7 of the report is particularly useful, showing the AAWI by industry for enterprise agreements approved during the September 2017 quarter.

  • For the manufacturing industry, the AAWI was 2.4% – representing no change from the previous two quarters.
  • For the mining industry, the AAWI was 1.9% – down 0.4% from the previous quarter.
  • For the construction industry, the AAWI was 3.1% – down 0.6% from the previous quarter.
  • For the electricity, gas, water and waste services industries, the AAWI was 2.3% – down 0.9% from the previous quarter.
  • For the retail industry, the AAWI was 1.1% – down 1.3% from the previous quarter.
  • For the transport, postal and warehousing industries, the AAWI was 2.0% – down 0.1% from the previous quarter.
  • For the administrative and support services industries, the AAWI was 3.0% – up 0.9% from the previous quarter.
  • For the financial and insurance services industries, the AAWI was 2.6% – down 0.6% from the previous quarter.
  • For the information, media and telecommunications services industries, the AAWI was 1.9% – down 0.7% from the previous quarter.

This article was written by Lucy Aird, Professional Support Lawyer. Please contact a member of Herbert Smith Freehills’ specialist bargaining team if you would like to discover more:

Anthony Wood
Anthony Wood
Partner, Melbourne
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+61 3 9288 1544
Drew Pearson
Drew Pearson
Partner, Sydney
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+61 2 9225 5492
Kirsty Faichen
Kirsty Faichen
Partner, Brisbane
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+61 7 3258 6492
Anthony Longland
Anthony Longland
Partner, Perth
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+61 8 9211 7273

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Filed under Industrial/workplace relations, collective bargaining, works councils, Jurisdiction: Australia, Remuneration (including bonus and incentive plans)

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