Wage Trends in Enterprise Agreements

By ACIRRT

Average annual wage increase for certified agreements in the June quarter 2002 was 4.2% This is up on the previous quarter but broadly consistent with the average over the past few years.

There was an increasing gap between union and non-union agreements. Union agreements contained an average increase of 4.4% whilst non-union agreements had an average 3.7% wage increase.

By industry the highest number of increases above 5% was in the construction area. (over 22% of agreements with wage increases of 5% or more). At the lower end the food, beverage and tobacco manufacturers comprised only 2.8% of high wage agreements.

Many agreements provide generous wage outcomes in return big changes in classification structures. Also the common inclusion of "at-risk" components in agreements with high wage rises. In such agreements employees are persuaded to share in the risk, responsibility and benefits associated with achieving higher productivity.

(ACIRRT ADAM Report no. 34, September 2002)