Wage Trends and Flexibility

By ACIRRT

The average annual wage increase in March quarter registered certified agreements was 4.25%, up by 0.15% on the December quarter. Union agreements averaged 4.26% compared to 4.21% for non-union.

Non-profit sector agreements remain well below the average at 3.5%. Government business enterprises are also below the average at 4%.

Flexibility has remained the dominant theme in higher wage outcome agreements. Practices such as increasing the span of hours, allowing workers to utilise flexible start and finish times, and the introduction of additional leave entitlements such as RDOs are examples of this flexibility. Removal of demarcation barriers was also a common inclusion, to enable better utilisation of skills.

Performance linked wage structures were also common, meaning that some part of wage increases remained "at risk" as workers had to meet some performance measures.

An increasing importance seems to have been given to training in agreements. In an effort to gain a competitive advantage, employers have provided financial incentives for training modules to be completed by employees.

(ADAM Report; no. 41, June 2004)