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General

Australian Workplace Agreements

Workers on AWA's get less: ABS

New figures released today by the Australian Bureau of Statistics show employees in non-managerial jobs that are on the Federal Government's AWA individual contracts are working longer hours and for less pay than workers on collective agreements.

The ABS survey of Employee Earnings and Hours shows that the average hourly rate of pay for non-managerial workers on a registered individual contract (AWA) is $26.40 an hour, or 90 cents an hour less than workers on a collective agreement ($27.30).

For workers on a typical 38 hour week, this would amount to an average pay gap of $34 a week between employees on AWA individual contracts and those on registered collective agreements.

The ABS figures shows that the pay gap is worst for women on individual contracts.

Female workers on AWA individual contracts earn an average of $22.80 an hour and this is $2.90 an hour less than women on registered collective agreements.

Again, for a typical 38 hours work, this means that women on AWA individual contracts earn an average of $110.20 a week less than women on registered collective agreements.

However, the ABS data also reveals that workers on AWA individual contracts typically work longer hours than those on collective agreements.

On average, people in full time non-managerial jobs that are on AWA individual contracts work 2.3 hours a week more than people on registered collective agreements.

The ABS data shows that as at May 2006, there were only 240,000 workers in non-managerial jobs on registered individual agreements (AWAs) while there were 3.1 million workers on registered collective agreements and 1.6 million workers reliant on awards.

Commenting on the earnings figures today, ACTU Secretary Greg Combet said:

"These figures are further evidence that working families are being hurt by the Government's IR laws and its support for AWA individual contracts.

In a country like Australia it is shocking that women on AWA individual contracts earn $110 a week less than women in a job covered by a union collective agreement.

If the Howard Government had its way, there would be a lot more Australians working longer hours for less pay on an individual contract.

It is a fact that every AWA individual contract registered under the new IR laws has taken away at least one formerly protected award condition.

Official figures show that 82% of AWAs reduce or abolish overtime pay, 63% of AWAs are abolishing penalty rates; 64% axing annual leave loading; 69% abolishing or reducing rest breaks; 73% reducing or abolishing public holiday payments; and 52% abolishing shift work loading.

It is also a fact that Australian working families are suffering under the new IR laws with average weekly earnings for full time employees failing to keep up with the cost of living for three quarters in a row," said Mr Combet.

Source: ABS 6306.0 p.33, Table 20 - Methods of Setting Pay

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