On 16 May 2018, Ai Group released an economic research paper on Australia’s recent experience of slow wages growth and its causes.

The paper draws together key data to highlight that in Australia the key causes of slow wages growth are:

  • Weak productivity growth;
  • Spare labour capacity; and
  • Weak inflation.

Other alleged causes of slow wages growth (such as low levels of union membership, the extent of casual employment, Australia’s bargaining laws, and migration) are not significant drivers of wages growth.

The paper highlights that real wages are best strengthened through improved productivity.

Ai Group’s media release, which accompanied the release of the paper, commented that the ACTU’s argument that it is in the community’s interests for the unions to be given more power to force employers to capitulate on union wage claims, conflicts with the economic data and is patently wrong.

The research paper is available on Ai Group’s website.

If you would like more information about wages please contact Ai Group’s Workplace Advice Service on 1300 55 66 77.

Alternatively, if you would like advice about negotiating wages in enterprise bargaining or local trends in your area contact your local employment, workplace and industrial lawyer in Sydney, Newcastle, Wollongong, Adelaide, Melbourne or Brisbane or email Ai Group Workplace Lawyers at info@aigroupworkplacelawyers.com.au.

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