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Category: Unions & Collective Bargaining

  • Addressing the health workforce crisis in the Pacific

    Labour Standards & Workers’ Rights, International Relations, Unions & Collective Bargaining, Wages & Entitlements

    Addressing the health workforce crisis in the Pacific

    by Fiona Macdonald, Lisa Heap and Charlie Joyce

    Authors

    Fiona Macdonald

    Acting Director, Centre for Future Work

    Lisa Heap

    Senior Researcher

    Charlie Joyce

    Researcher

    Media release



    Australia dumps its care crisis on the Pacific – new report

    Labour mobility is a significant contributor to Pacific Islands’ economies.

    Australia and New Zealand’s temporary labour migration schemes for Pacific workers have expanded into more industries including personal care work in aged care.

    This has led to the loss of skilled health workers from Pacific Island countries, including registered nurses, to lower-skilled personal care jobs overseas.

    Workers who take up temporary migration in Australia and New Zealand are vulnerable to being underpaid and exploited, due to their visa status.

    This report examines the need for reform of labour migration systems and greater consultation with workers.



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    Australia dumps its care crisis on the Pacific – new report

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  • Solving the crisis: Raising the living standards of Australian workers

    Employment & Unemployment, Future of Work, Inequality, Labour Standards & Workers’ Rights, Social Security & Welfare, Unions & Collective Bargaining, Wages & Entitlements

    Solving the crisis: Raising the living standards of Australian workers

    by Lisa Heap

    Author

    Lisa Heap

    Senior Researcher

    Media release



    Feeling hopeless? You’re not alone. The untold story behind Australia’s plummeting standard of living

    Productivity might be the word on everyone’s lips in the lead up to the Albanese Government’s Economic Reform Roundtable  however weak productivity isn’t the cause of many of the problems experience by workers in Australia today nor is increasing productivity the solution. Rapid inflation after the pandemic, combined with rising interest rates and slow wage growth, left many Australian households struggling to afford necessities. The Reserve Bank’s (RBA) blunt strategy of raising interest rates to slow the economy post the pandemic both misdiagnosed the drivers of inflation and harmed Australian workers who struggled to manage increased mortgage repayments and other debts. The root causes of Australia’s post pandemic crisis—rising corporate profits, unjustifiable price hikes, and deep wage stagnation were ignored by the RBA.

    Despite a reduction in inflation and interest rates, too many Australians are still experiencing lower living standards after the turbulent events of the past five years. Official inflation figures may capture broad economic trends however, they do not adequately describe the real pressures experienced by working people—particularly when it comes to the impact of the increasing costs of essentials like food, housing, and energy. Australian workers can ill afford another round of RBA driven unemployment, austerity, and uncertainty.

    What will it take to repair the damage to Australian workers’ living standards?

    In a new publication, Solving the Crisis: Raising the Living standards of Australian workers, some of Australia’s leading progressive economists and social policy analysts explain what is going on and how to fix it. The origins of the current crisis in living standards are documented. A progressive policy agenda for a second term Albanese Government is advanced.

    The multidimensional policy agenda in Solving the Crisis calls for

    • increases in real wages
    • achieving full employment
    • better quality jobs and greater assistance and respect for those seeking employment
    • strengthening public services (including health care, childcare, aged care and education)
    • making fair and affordable housing available
    • developing a well-planned and supported transition to renewable energy sources.

    The key to the success of this agenda is centering the experience of workers’ and their families.

    Australia should adopt a progressive multidimensional economic agenda that lifts living standards, reduces inequality, and strengthens democracy, rather than a narrow concentration on productivity. Uniting people behind this progressive economic agenda helps counter the trend towards increasing inequality, division and conflict, that has been present in other countries.

    How to solve the living standards crisis

    Four policy papers are the core of  Solving the Crisis. These papers examine the main drivers of inequality and deteriorating living standards in Australia

    • Greg Jericho examines how inflation is misunderstood when disconnected from wage growth. He proposes a shift in Reserve Bank policy and a renewed focus on promoting real wage increases.
    • Peter Davidson  argues that growing inequality is not inevitable. Through strengthening the four key policy pillars – income support, minimum wages, full employment, and employment services – minimum incomes can be raised and inequality reduced.
    • Thomas Greenwell highlights how decades of declining collective bargaining and high underemployment have undermined living standards. He calls for renewed support for unions, stronger collective bargaining systems, and a focus on full employment in macroeconomic policy.
    • Charlie Joyce revisits the concept of the social wage—and argues that rebuilding and expanding the social wage can raise living standards, promote inclusion, and restore trust in democratic institutions.

    Together these papers provide practical policy solutions forming a platform for economic reform.

    Solving the Crisis helps working people to help cut through economic misinformation and political spin, offering a clear lens on the structural factors that have driven inequality and declining living standards.

    Progress is happening

    In its first term the Albanese Government has made cautious progress on living standards. This progress includes labour market reforms that have contributed to stronger wage growth. These reforms include supporting increases in the minimum wage, facilitating collective bargaining in hard-to-organise industries, funding support for wage increase in early childhood education and aged care. Cost-of-living measures, like energy rebates and expanded renter assistance, also provide important support to hard-hit households. Meanwhile, the easing of interest rates by the RBA—better late than never, may support future growth and job-creation.

    However, while prices are growing more slowly, the levels of many prices remain too high—especially for necessities like food, housing, and energy. Wages growth may have commenced however at the current pace, it will take several years to repair real wages, and restore the same purchasing power for workers they enjoyed before the pandemic. The quality of public services (another critical determinant of living standards) has been damaged by underfunding and overreliance on privatised provision, the costs of which we are currently seeing in early childhood education and care. Minimum income payments such as Jobseeker remain woefully inadequate. The system designed to support and assist people from unemployment into decent jobs is broken beyond repair. Meanwhile, global economic and geopolitical uncertainty threatens to derail this modest recovery before it really gets going.

    More work to be done

    At the 2025 federal election the Australian people rejected political parties proposing cuts to public services, short-term fixes (like petrol tax cuts), and the politics of division. In its second term the Albanese Government has a unique opportunity to implement progressive policy changes such as those contained in Solving the Crisis.

    More details about Solving the Crisis and additional resources are available at https://www.carmichaelcentre.org.au/living_standards.



    Solving the Crisis: Raising the living standards of Australian workers

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  • The curious incident of low wages growth

    Unions & Collective Bargaining, Wages & Entitlements

    The curious incident of low wages growth

    Wages and Policy in the 21st Century Report No. 1
    by David Peetz

    Author

    David Peetz

    Laurie Carmichael Distinguished Research Fellow

    A new Carmichael Centre report by David Peetz considers why wages growth has been so low, despite a tight labour market and a brief surge in inflation.

    Asking why has there been no wages explosion, Peetz finds the answer lies in loss of power.

    The report documents how workers have lost power in the past two decades, with almost every change in the economy taking away workers’ bargaining power.

    From 2014 to 2022 most government policies took away workers’ bargaining power. The most recent industrial relations reforms in 2022-2024 shifted the pendulum back some way towards workers. These laws increased workers power and have also boosted wages growth.

    The analysis shows that all workers have had their wages damaged by lack of power. And all workers have been able to recover some ground since the recent industrial relations laws have come into effect.

    • Australian workers can no longer obtain the wage increases that they previously could from wage negotiations. Workers do not contribute to inflation.
    • Changes in power have combined to normalise low wages growth, for both union and non-union workers, even in tight labour markets. Of 16 developments in the labour market and economy over the past 50 years, 14 signalled deterioration in worker power, one an improvement in power for female workers only, and one an improvement only from 2010 until 2023 (lower unemployment).
    • The one countervailing force in recent times has been public policy which, since 2022, has led to some increases in workers’ power. Analysis of 34 policy events showed that the majority of those before 2022 further reduced workers’ bargaining power, while almost all of those since then have increased workers’ power.
    • In March 2014 wages were 53.0% of national income, but by December 2022 they had fallen to just 50.3%, before recovering to 53.5% by September 2024.
    • Wages grew at a little over 2% per year through most of the period from 2013-14.  After September 2022, they grew more quickly, to over 4% per annum throughout 2023-24.
    • The wage gains associated with increased worker power are not just restricted to unionists, but they are likely greater for unionists than non-unionists.



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  • Doing it Tough

    Inequality, Unions & Collective Bargaining, Wages & Entitlements

    Doing it Tough

    How Australians are experiencing the cost of living crisis
    by Lisa Heap

    Author

    Lisa Heap

    Senior Researcher

    This report documents the results of a recent survey of Australian adults regarding their experience of the cost of living crisis. Australian workers are doing it tough. Costs are increasing faster than wages and incomes. Those with less are doing it the toughest.

    The current cost of living crisis in Australia has two components – the incomes that people receive, and the prices they pay for goods and services. This is what Alan Fels has recently referred to as the “two faces” of the crisis .  Action to protect the living standards of Australians must address both faces of the crisis.

    As part of a broader research initiative investigating the human costs of the crisis and the impact of austerity on Australian workers, the Australia Institute’s Centre for Future Work surveyed a nationally representative sample of 1014 adults living in Australia about their household income and the costs of living.  The results show that:

    • Almost three-quarters (72%) of respondents felt their wages had grown slower than prices over the previous year.
    • Over half of respondents (53%) said their household’s financial situation was worse that it was two years ago.
    • The cost of living crisis has had differential impacts. Because it has affected lower-income Australians most severely, the cost of living crisis has exacerbated inequality.
    • Respondents identified higher grocery prices as the most visible source of the increased cost of living. Six out of 10 (60%) of respondents identified groceries as the purchase where they have most noticed higher prices followed by utilities (21%) and transport (7%).
    • There was strong support for measures across a broad range of policy areas to address the costs of living. 64% of respondents said it was very important to lower utility costs to reduce cost of living pressures. 64% said it was very important to increase supermarket competition, 60% to lower medical costs, and 58% to increase the pace of wages growth.

    The respondents to this survey supported a suite of policy initiatives designed to both reduce the cost of living, and to increase wages and income supports. In their view, addressing the cost of living crisis requires a multi-dimensional approach, rather than a singular reliance on high interest rates to slow inflation.

    The report is published by the Centre for Future Work in conjunction with a one-day symposium it is hosting in Melbourne on 17 October on the crisis in living standards in Australia, and how to address it through greater investments in wages, public services, and affordable housing and energy.



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  • No Blood – No Job

    Employment & Unemployment, Labour Standards & Workers’ Rights, Unions & Collective Bargaining

    No Blood – No Job

    Australia’s privacy laws and workers’ rights
    by Lisa Heap

    Author

    Lisa Heap

    Senior Researcher

    Organisations in Australia are using blood analysis as a means of screening future employees for ‘health risks’ that they allege may impact on their performance of work.

    Collecting sensitive information from blood analysis is restricted under Australia’s privacy laws. This is because the mishandling of this information can have a substantial detrimental impact on those who have provided the information. Requiring workers to submit to blood analysis is just one example of how organisations are now routinely collecting sensitive information from workers, sometimes without adhering to the requirements of privacy laws. Other examples include using fingerprint and facial recognition software and sensors that collect physiological and psychological data about workers.

    The protection from arbitrary interference with a person’s privacy is a fundamental human right. Interfering with this right, by collecting sensitive personal information, should occur in limited circumstances and only where necessary. However, this report shows that some organisations in Australia, are not treating the collection of sensitive information from workers as an exception. They are collecting sensitive information as a routine step in their employment processes.

    The findings of this report raise concerns about power, privacy, fairness, and the potential for discrimination in the practices being adopted by some organisations. These findings also show that Australia’s current privacy and workplace relations laws do not adequately address these concerns. Amendments to Australian privacy laws are currently being considered by the Australian Government with reforms likely to be put before the Australian Parliament before the end of 2024.

    This report examines the need for new provisions within either or both privacy or workplace relations laws that set out the rights of workers to protect their sensitive information. It argues that regulation should be geared towards, not only protecting workers’ rights to privacy, but to providing a disincentive to organisations hoarding and misuse of the personal and sensitive information of workers.

    The worker-centric approach called for in this report includes:

    • the development of one system of regulation to protect the privacy concerns of all workers regardless of employment status or work context
    • defining the collection of workers’ personal and sensitive information as high risk requiring both specific and detailed justification for the collection of this information and the genuine informed and affirmative consent of workers
    • the establishment of a tripartite mechanism to assist the regulator to develop and manage processes for dealing with the privacy and related human rights concerns of workers
    • the use of codes and frameworks, developed via a tripartite mechanism, to set out when and how workers’ information can be collected and used
    • the development of an easy to access, and timely, worker centered mechanism to address concerns about the collection and use of workers’ information.



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  • Employee voice and new rights for workplace union delegates

    Unions & Collective Bargaining

    Employee voice and new rights for workplace union delegates

    Impacts on wages, productivity, cooperation and union training
    by David Peetz

    Author

    David Peetz

    Laurie Carmichael Distinguished Research Fellow

    Media release



    New union rights to boost workplace cooperation

    A workplace delegate is a worker chosen to represent workers who are union members in dealings with management. Delegates are volunteers who perform their union duties on an unpaid basis in addition to their normal job at work. Delegates spend their time undertaking vital tasks for workplace representation.

    Some employers have actively placed barriers in the way of volunteer union delegates and paid officials. One study in the early 2000s found that 23% of delegates found management
    hostile, while 22% of delegates reported that management opposition to their role as a delegate had become more intense over the previous two years. Examples from various case studies, including court and industrial cases, illustrate some of the ways in which that minority of employers from workplaces with delegates expressed their hostility towards unionism and their opposition to delegates, including by placing barriers in the way of workplace union activists and delegates.

    The new regime of workplace delegates’ rights is very likely, overall, to increase the voice of employees, and thereby have positive consequences, over the long run, for pay and conditions, union membership, workplace cooperation, grievance resolution and productivity. However, the effects of new rights for paid union training leave depend very much on union responses, in particular on their subsequent reliance on classroom versus informal training and the ‘follow up’ of classroom education.



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    Factsheet
    New union rights to boost workplace cooperation

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  • The Irrelevance of Minimum Wages to Future Inflation

    Labour Standards & Workers’ Rights, Macroeconomics, Unions & Collective Bargaining

    The Irrelevance of Minimum Wages to Future Inflation

    Minimum and award wages should grow by 5 to 10 per cent this year
    by Jim Stanford and Greg Jericho

    Authors

    Jim Stanford

    Greg Jericho

    Chief Economist

    Media release



    Increasing minimum wage would not drive inflation up: new report

    A significant increase to the minimum wage, and accompanying increases to award rates, would not have a significant effect on inflation, according to new analysis by the Centre for Future Work at the Australia Institute.
    The analysis examines the correlation between minimum wage increases and inflation going back to 1997, and it finds no consistent link between minimum wage increases and inflation.

    The report, co-authored by Greg Jericho (Policy Director) and Jim Stanford (Director), finds that a minimum wage rise of between five and 10 per cent in the Fair Work’s Annual Wage Review, due in June, is needed to restore the real buying power of low-paid workers to pre-pandemic trends, but would not significantly affect headline inflation.

    Key findings of the report include:

    • Last year’s decision, which lifted the minimum wage by 8.65 per cent and other award wages by 5.75 per cent, offset some but not all of the effects of recent inflation on real earnings for low-wage workers.
    • At the same time, inflation fell by 3 full percentage points.
    • There has been no significant correlation between rises in the minimum wage and inflation since 1997.
    • Raising wages by 5 to 10 per cent this year would offset recent inflation and restore the pre-pandemic trend in real wages for award-covered workers.
    • Even if fully passed on by employers, higher award wages would have no significant impact on economy-wide prices.
    • A 10 per cent increase in award wages could be fully offset, with no impact on prices at all, by just a 2 per cent reduction in corporate profits – still leaving profits far above historical levels.

    “Australia’s lowest paid workers have been hardest hit by inflation since Covid. There is a moral imperative to restore quality of life for these Australians and this analysis shows that there is no credible economic reason to deny them,” Jericho said.

    “It’s vital the Fair Work Commission ensure that the minimum wage not only keeps up with inflation, but also grows gradually in real terms – as was the trend before the pandemic.



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    Factsheet
    Increasing minimum wage would not drive inflation up: new report

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  • Mid-Term Review of Albanese Government’s Labour Policy Reforms

    Labour Standards & Workers’ Rights, Unions & Collective Bargaining

    Mid-Term Review of Albanese Government’s Labour Policy Reforms

    Reforms will make a significant difference, but further progress needed
    by Greg Jericho, Charlie Joyce, Fiona Macdonald, David Peetz and Jim Stanford

    Authors

    Greg Jericho

    Chief Economist

    Charlie Joyce

    Researcher

    Fiona Macdonald

    Acting Director, Centre for Future Work

    David Peetz

    Laurie Carmichael Distinguished Research Fellow

    Jim Stanford

    A review of the Albanese government’s labour and industrial relations reforms at the mid-point of its term in office concludes that the government deserves “positive marks” for several measures taken to strengthen collective bargaining and accelerate wage growth.

    That assessment is contained in an article contained in a new special issue of the Journal of Australian Political Economy (JAPE), evaluating the government’s record on a range of issues halfway through its term. The special issue of JAPE was published on 18 December, and was edited by Prof Emeritus Frank Stilwell at the University of Sydney.

    The article reviewing the government’s labour policies was co-authored by several staff at the Centre for Future Work, including Greg Jericho, Charlie Joyce, Fiona Macdonald, David Peetz, and Jim Stanford. It considers the impacts of several government initiatives, including:

    • Successive rounds of reforms to the Fair Work Act (including last year’s Secure Jobs, Better Pay bill, and this year’s Closing Loopholes legislation).
    • Several reforms to address gender inequality in workplaces.
    • A more ambitious approach to raising the national minimum wage.
    • Longer-run proposals for attaining full employment, described in the government’s recent White Paper on Jobs and Opportunities.

    The authors judge that the government’s labour reforms have achieved an “incremental but significant rebalancing of industrial relations.” They pointed to the acceleration of wage growth in Australia in the last year as evidence that workers have won important bargaining power. Wages are now growing at 4% year-over-year, according to the latest WPI data from the ABS — twice as fast as they did on average over the previous decade, which was marked by the slowest sustained wage growth in the postwar era.

    The authors caution, however, that additional reforms are necessary to reverse the erosion of collective bargaining coverage and union membership, and ensure that workers have the bargaining power to improve wages, job security and working conditions.

    “On the whole, the Albanese government has made cautious but useful progress on industrial relations and labour issues during its first year. However, it must be acknowledged that the overall labour relations regime in Australia remains heavily skewed in favour of employers,” the authors concluded.

    Please see the full article, “Labour Policy,” by Greg Jericho, Charlie Joyce, Fiona Macdonald, David Peetz and Jim Stanford, at the link below. Fiona Macdonald also authored a second article in the special issue, dealing with the government’s reforms to care policies. To see the full collection of articles in the special issue, visit the JAPE website.



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  • Submission to the Senate Education and Employment Legislation Committee Inquiry into the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023

    Gig Economy, Labour Standards & Workers’ Rights, Unions & Collective Bargaining, Wages & Entitlements

    Submission to the Senate Education and Employment Legislation Committee Inquiry into the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023

    Reforms Would Improve Stability, Wages for Workers in Insecure Jobs
    by Fiona Macdonald, David Peetz and Jim Stanford

    Authors

    Fiona Macdonald

    Acting Director, Centre for Future Work

    David Peetz

    Laurie Carmichael Distinguished Research Fellow

    Jim Stanford

    Experts from the Centre for Future Work recently made a submission to the Senate committee studying the “Closing Loopholes” bill, which would make several reforms to the Fair Work Act.

    The submission was prepared by our Policy Director Dr Fiona Macdonald, Carmichael Distinguished Research Fellow Prof Em David Peetz, and Economist and Director Dr Jim Stanford.

    Their submission emphasises:
    • The importance of limiting insecure employment practices (such as casual employment, labour hire, and platform or ‘gig’ work), and providing full protections to workers in those arrangements.
    • The importance of strong and well-resourced mechanisms to ensure the enforcement of these rules, and timely and effective recompense in cases when they are not.
    • The importance of empowering trade unions and their delegates to play their full potential role in enforcing labour standards and ensuring fair compensation and treatment of workers.



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    Factsheet
    Paying for Collective Bargaining

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  • Profit-Price Inflation: Theory, International Evidence, and Policy Implications

    Macroeconomics, Unions & Collective Bargaining, Wages & Entitlements

    Profit-Price Inflation: Theory, International Evidence, and Policy Implications

    Profits need to come down to reduce inflation and allow real wages to recover
    by Jim Stanford, Richard Denniss, Matt Grudnoff, Greg Jericho, David Richardson and Matt Saunders

    Authors

    Jim Stanford

    Richard Denniss

    co-Chief Executive Officer

    Matt Grudnoff

    Senior Economist

    Greg Jericho

    Chief Economist

    David Richardson

    Senior Research Fellow

    Matt Saunders

    Senior Economist

    Media release



    Corporate Profits Must Take Hit to Save Workers

    New research confirms that corporate profits in Australia, despite recent moderation, remain well above historic norms, and must fall further in order to allow a rebuilding of real wages in Australia that have been badly damaged by recent inflation.

    The report, compiled by Dr Jim Stanford (Economist and Director of the Centre for Future Work), with contributions from several other economists at the Centre and the Australia Institute, confirms that higher corporate profits still account for most of the rise in economy-wide unit prices in Australia since the pandemic struck.

    The good news is that corporate profits have begun to moderate, as global supply chains are repaired, shortages of strategic commodities dissipate, and consumer purchasing patterns adjust after the pandemic. This has occurred alongside a reduction in inflation of over half since early 2022 (falling from a peak of 8.9% annualised in early 2022 to 3.4% by June 2023). This further confirms the close correlation between corporate profits and inflation — but both profits and inflation need to fall further.

    The report also reviews the methodology and findings of over 35 international studies confirming the existence of profit-led inflation across many industrial countries (including Australia). The methodology and findings of these studies are very similar to that utilised by the Australian Institute and the Centre for Future Work in previous research on profit-led inflation.

    The international research includes reports from numerous established institutions (including the OECD, the IMF, the Bank for International Settlements, many central banks, and the European Commission). Using similar methodology, these institutions came to similar conclusions: namely, that historically high corporate profits were the dominant factor in the initial surge of global inflation after COVID.

    The report was submitted on 21 September as evidence to the ACTU’s Price-Gouging Inquiry, headed by Prof Allan Fels. This Inquiry is gathering documentary evidence on how Australian workers and consumers have faced exploitive and unfair pricing practices by Australian corporations, which have added to recent inflation and undermined real wages. The new report provides macroeconomic evidence confirming the relevance of the Inquiry’s terms of reference.

    Policy-makers in other countries (including Europe and the U.S.) agree that corporate profit margins need to fall further in order to continue reducing inflation, while allowing real wages to recover to pre-pandemic levels. The new report shows this is also true in Australia. Average real wages are presently 6% lower than in mid-2021 (when post-pandemic inflation broke out, led by higher prices and corresponding super-profits in strategic industries like energy, manufacturing, and transportation).

    Wages will thus have to grow significantly faster than inflation for a sustained period of time to recoup those losses. That can occur while still reducing inflation if historically high profit margins are reduced to traditional levels.



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    Factsheet
    Chalmers is right, the RBA has smashed the economy




    Factsheet
    Would you like a recession with that? New Zealand shows the danger of high interest rates

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