Wages growth under enterprise bargaining agreements was reined in during the June quarter, new federal government figures show.
The Department of Education, Employment and Workplace Relations data shows the average annualised wage increase through collective agreements was 3.7 per cent in the June quarter, down from 4.4 per cent in the previous quarter.
Almost 2200 agreements covering an estimated 257,200 employees were made in the June quarter under the Fair Work Act.
The annualised rate for the private sector fell 0.2 percentage points to 4.3 per cent in the quarter, and dropped by 0.9 percentage points in the public sector to 3.1 per cent, according to the report released today.
The result was in line with the Reserve Bank of Australia's preferred wage growth measure for the same quarter.
The June quarter wage price index, released in August by the Australian Bureau of Statistics, showed an annual rate of 3.7 per cent - well below the 4.5 per cent level normally considered a threat to the inflation outlook.
Workplace Relations Minister Bill Shorten says the figures prove new EBAs are delivering sustainable wages and improved productivity and helping businesses to be competitive.
Mr Shorten said the Fair Work system was delivering sustainable wage outcomes and the enterprise bargaining outcomes reflected different circumstances in different sectors.
"This shows the Fair Work enterprise bargaining system is flexible and delivers sustainable and appropriate wage outcomes,” Mr Shorten said.
Agreements also continue to include a range of provisions with more than 48 per cent discussing a commitment to improve productivity, he said.
Almost 95 per cent of agreements provide for the flexible engagement of employees, and more than 72 per cent provide flexibility in hours of work."It’s good news that businesses and organisations continue to invest in training and staff development, with almost 90 per cent of agreements containing provisions relating to training,” Mr Shorten said.
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