Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, Senator Chris Evans. Can the minister advise the Senate of the most recent wages data and what the government is doing to put in place a sustainable basis for economic growth?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank Senator Mark Bishop for his question and for his interest in these issues. The wages price index released yesterday was very reassuring. It showed contained wages growth across the entire economy, including the private sector. The index increased by 1.1 per cent in the September quarter, with a 3.5 per cent increase over the year to the end of September. This is good news on a number of fronts, as it shows that the Australian economy is recovering at a sustainable pace and that workers are sharing in the benefits. In particular, far from showing a wages break-out, as some have claimed, these figures demonstrate the continuing recovery from the global economic downturn. Indeed, similar annual wages outcomes were recorded during the economic recovery of 2000-01.

Yesterday’s wage figures are in line with long-term historical trends, in line with official inflation forecasts and in line with market expectations. It is also important to note that yesterday’s figures reflect the impact of this year’s minimum wage decision, which awarded $26 per week from 1 July. That decision provided low-wage Australian workers with a much deserved pay rise after their pay had been frozen for two years.

In spite of these encouraging figures, the government has always been vigilant regarding the pressures that would emerge across the economy through this recovery. That is why we announced the Skills for Sustainable Growth package in the 2010 budget. This package of measures invested more than $660 million to address the skills challenges facing Australia. It sought to bring in a number of measures such as the Critical Skills Investment fund, Smarter Apprenticeships, increased support for language literacy and numeracy, and a number of measures to improve the quality of VET training. After the Howard government’s failure to invest in skills, the Gillard government is boosting skills so that Australians are equipped for the high-paying, high-skilled jobs of the future.

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is the minister aware of wages trends in collective agreements?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Yesterday my department released the Trends in Enterprise Bargaining report for the June 2010 quarter. This report backs up the wages price index data released yesterday, showing that collective agreements are in fact delivering moderate, sustainable wage increases. The current average annual wage increase in agreements is 4.1 per cent, remaining unchanged from the previous quarter. While industries like construction are experiencing slightly higher increases, this is not flowing into other sectors. I think it is very much a sign of a well-functioning, flexible labour market.

Some commentators have expressed concern about excessive wage claims, but I think it is inappropriate to comment on every single wage claim made as part of a bargaining process. It is the government’s job to ensure that we have a workplace relations framework capable of delivering fair and flexible outcomes for employers and employees. (Time expired)

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister advise the Senate of evidence that employers and employees are taking up Fair Work Act agreements?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Yesterday’s Trends in Enterprise Bargaining report shows that agreement making has reached record levels. There are almost 24,000 current agreements covering a staggering 2.4 million employees. Employers and employees are getting on with bargaining under the Fair Work Act, with almost 6,500 new agreements covering 700,000 employees being made to the end of September. We have a system of collective bargaining agreements based on principles of good-faith bargaining, and the early signs show that people are doing the right thing. Only 18 good-faith bargaining orders were issued in the last financial year. This is only one order for every 400 agreements lodged during that period. Also, industrial disputation continues its downward trend, with only 2.5 working days lost per thousand for the June 2010 quarter. These are some of the major indicators that demonstrate that the Fair Work Act is working well.