Data for the December quarter showed average pay rises of 4.3 per cent for workers on collective agreements.

The ACTU welcomed the increase and said it reflected the impact of the Albanese government’s Secure Jobs Better Pay reforms.

The boost to workers’ incomes was fuelled by an increase in 227,000 more workers covered by collective agreements than a year earlier, with coverage reaching 2 million workers in total, or 16.7 per cent of the workforce, up from 15.2 per cent in December 2022, the ACTU said.

The 4.3 per cent increase represents the highest quarterly average pay rise for workers on newly approved collective agreements since 2009, exceeding the 3.0 per cent average increase in December 2022.

ABS data showed inflation slowing, from 7.8 per cent in the year to December 2022 to 4.1 per cent in December 2023.

“Collective bargaining is how working people can win pay increases beyond the bare minimum,” said ACTU President, Michele O’Neil.

“Under the decade of Coalition government, the number of workers covered by collective agreements collapsed and wages stagnated. We

have seen this trend start to reverse – more workers are on collective agreements and, as a result, they’re winning higher pay.

“If you’re a working person, the best way to get a pay rise is to join your union and be covered by a collective agreement.”