E-Mailemail@example.com for more details or assistance on the legal requirements in the contracting process, and a member of the Commission`s agreement team will contact you within 2 working days. The overwhelming evidence is that Australia`s current collective bargaining system is not enough to represent workers and raise wages in our developing economy, with an increasingly fragmented labour market. Decentralized enterprise-level negotiations do not have access to collective bargaining for most private sector workers. In the case of a „Green Fields” agreement that does not employ employees, the employer negotiates with one or more workers` organizations (unions) involved. A decline in tariff coverage in all sectors indicates that employers are „jumping” agreements in favour of other wage-setting methods, such as bonuses and individual contracts. This is reflected in a 5 percentage point increase in the share of private sector employees who, in just two years (2014-16), receive only the minimum wage in bonuses. The procedures for approving enterprise agreements vary depending on the type of agreement. A viable collective bargaining system is essential to rebuilding shared prosperity, but significant changes to the current rules will be required to keep collective bargaining alive. There is therefore no reason why options to expand the bargaining room through multi-employer agreements should not be available for all sectors of the future Australian industrial relations system. It is believed that the consequences of the erosion of the collective agreement are profound for workers, employers and the economy as a whole. The erosion of the collective agreement has had an impact on wages – an increasingly small number of workers with access to bargaining means fewer workers having access to safer wage increases than inflation (and less access to our already strict labour dispute rules). This is due to Australia`s unprecedented wage slowdown and it is certainly because the erosion of EA is an interprofessional and interprofessional problem.
The share of Australian workers in national income has eroded over the past 40 years, from more than 58% of GDP in the mid-1970s, reaching a record high of just 47% in 2017 (Stanford 2018a). Ninety percent of what lost work is reflected in an increase in the share of the company`s profits. Experience has given rise to traditional expectations that higher GDP will inevitably increase labour incomes and that labour incomes will automatically increase at the same rate as real labour productivity. One of the main reasons why growth, productivity and wages were decoupled is the weakening of the redistribution institutions established by Australia during the long post-war expansion – when the country became a fair playing country. One of the most important dimensions of this institutional decline has been the dramatic fall of the collective bargaining system.