Wages and Wage Determination in 2001

Abstract

The number of employees covered by certified agreements increased during 2001, but wage determination remained fragmented. The inflationary impact of higher oil prices and the depreciation of the Australian dollar in the second half of 2000, when the economy was also absorbing the impact of the GST, threatened the wage targets of the Reserve Bank. Contrary to expectations, wage growth remained modest. The Commission again adopted a compromise Safety Net Decision in May. The review concludes that, notwithstanding the improvement in the conditions of employment of some non-standard employees following successful cases brought to Federal and State Commissions, the balance of forces between employers and employees has fundamentally shifted over the last decade and this has impacted on wage outcomes. This reflects a combination of workplace reform, in particular the Workplace Relations Act, and the associated structural change in the labour market.