Negotiations Suggesting Solid But Contained Wages Growth

In line with the elevated but contained labour cost growth registered in today’s NAB business survey (see MNI comment), the Australian is reporting on several large Australian employers' wage agreements and offers. Given Australia’s sticky wage-setting system, the pay offers from large organisations are likely to be in the spot light as an indicator of future wage trends, especially as they may also be used as benchmarks for smaller organisations.

• Telstra finalised its wage increases late last year and its 17k employees are scheduled to receive a modest wage increase of 2.5% in October followed by a further 3% in 2023. CPI inflation rose 6.1% in Q2 and is expected to climb further in Q3 (data is released on October 26).
• Big 4 bank NAB has offered its employees earning under A$100k, 5% for the first year of the agreement followed by 4% the year after. Those earning above the threshold have been offered 0.5pp less. The Finance Sector Union has demanded an across-the-board 6% wage rise. The Australian also notes that Westpac’s offer of up to 4% was rejected by employees. While, ANZ’s staff is still under the 2015 enterprise agreement, they have asked for a meeting with the union to discuss wages.