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1301.0 - Year Book Australia, 2002  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 25/01/2002   
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Contents >> Labour >> How pay is set

The Survey of Employee Earnings and Hours conducted in May 2000 collected information on employees' pay setting arrangements, e.g. by award, collective or individual agreements. 'Awards only' refers to employees who had their pay set at exactly the applicable award rate of pay. Employees classified to the 'collective agreements' category were those whose pay was set by a registered or unregistered collective agreement. Those classified to the 'individual agreements' category either had their pay set by an individual common law contract, or received overaward payments specified in an individual agreement, or were working proprietors who set their own rate of pay, or were employees on registered individual agreements.

Table 6.39 shows that the most common method of setting pay was individual agreements (40%), followed by collective agreements (37%) and awards only (23%). Accommodation, cafes and restaurants was the industry with the highest proportion of employees on awards (65%), and the lowest proportion of employees on collective agreements, while Electricity, gas and water supply (1%) and Communication services (2%) had the lowest proportion of employees on awards. Government administration and defence (78%), Education (77%) and Electricity, gas and water supply (77%) had the highest proportion of employees under collective agreements. Wholesale trade (77%), Property and business services (68%) and Construction (61%) had the highest proportion of employees on individual agreements, while Government administration and defence (7%) and Education (9%) had the lowest.

6.39 METHODS OF SETTING PAY, By Industry(a) - May 2000

Industry
Awards only

%
Collective
agreements(b)

%
Individual
agreements(c)

%
Total

%

Mining
*5.9
39.7
54.3
100.0
Manufacturing
11.4
37.0
51.6
100.0
Electricity, gas and water supply
*1.4
76.5
22.1
100.0
Construction
15.0
23.8
61.2
100.0
Wholesale trade
12.1
10.8
77.1
100.0
Retail trade
34.9
28.7
36.5
100.0
Accommodation, cafes and restaurants
64.7
6.7
28.6
100.0
Transport and storage
18.4
40.1
41.5
100.0
Communication services
*1.5
69.4
29.1
100.0
Finance and insurance
5.6
49.9
44.4
100.0
Property and business services
20.7
11.1
68.2
100.0
Government administration and defence
15.3
77.9
6.8
100.0
Education
13.6
77.1
9.3
100.0
Health and community services
37.4
43.5
19.1
100.0
Cultural and recreational services
18.9
33.3
47.8
100.0
Personal and other services
27.1
42.8
30.1
100.0
All industries
23.2
36.8
40.0
100.0

(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC).
(b) Includes registered and unregistered collective agreements.
(c) Includes registered and unregistered individual agreements.

Source: Employee Earnings and Hours, Australia (6306.0).

Table 6.40 shows that of all occupations, Managers and administrators are the least likely to be covered by awards only (3%), and the most likely to be covered by individual agreements (74%). Professionals had the highest proportion of employees under collective agreements (51%), while Elementary clerical, sales and service workers had the highest proportion of employees under awards (42%).

6.40 METHODS OF SETTING PAY, By Occupation(a) - May 2000

Occupation
Awards only

%
Collective
agreements(b)

%
Individual
agreements(c)

%
Total

%

Managers and administrators
3.3
22.9
73.8
100.0
Professionals
13.2
51.4
35.4
100.0
Associate professionals
12.2
33.8
54.1
100.0
Tradespersons and related workers
23.1
32.0
44.9
100.0
Advanced clerical and service workers
14.2
20.9
64.9
100.0
Intermediate clerical, sales and service workers
29.9
31.4
38.7
100.0
Intermediate production and transport workers
19.1
48.7
32.2
100.0
Elementary clerical, sales and service workers
42.0
36.9
21.1
100.0
Labourers and related workers
36.9
34.6
28.5
100.0
All occupations
23.2
36.8
40.0
100.0

(a) Classified according to the Australian Standard Classification of Occupations (ASCO), Second Edition.
(b) Includes registered and unregistered collective agreements.
(c) Includes registered and unregistered individual agreements.

Source: Employee Earnings and Hours, Australia (6306.0).

Table 6.41 shows the average weekly earnings of employees under the various types of pay setting arrangements. Persons working under individual agreements had the highest average weekly total earnings ($787.70 and $728.10 for registered and unregistered agreements respectively). However, for males registered collective agreements were higher than unregistered individual agreements ($850.40 compared to $834.40), while for females registered collective agreements were higher than both registered and unregistered individual agreements ($591.80 compared to $562.60 and $575.80 respectively).

6.41 METHODS OF SETTING PAY, Average Weekly Total Earnings - May 2000

Ordinary time earnings

Overtime
Total
Base pay

$
Payment by measured result

$
Total

$


$


$

MALES

Awards only
431.80
*8.00
439.80
41.10
480.90
Registered collective agreements
769.70
6.10
775.70
74.60
850.40
Unregistered collective agreements
656.80
*7.90
664.60
45.20
709.80
Registered individual agreements
878.80
*9.20
888.10
*26.40
914.40
Unregistered individual agreements
797.50
12.10
809.60
24.80
834.40
Total
725.70
9.20
734.80
45.40
780.20

FEMALES

Awards only
369.70
*0.80
370.50
7.80
378.30
Registered collective agreements
576.70
1.00
577.70
14.00
591.80
Unregistered collective agreements
430.00
*1.40
431.50
*11.50
442.90
Registered individual agreements
557.10
*4.00
561.10
*1.60
562.60
Unregistered individual agreements
566.70
*3.20
569.90
6.00
575.80
Total
509.60
1.70
511.30
9.40
520.60

PERSONS

Awards only
392.60
*3.40
396.00
20.10
416.10
Registered collective agreements
674.10
3.60
677.70
44.60
722.30
Unregistered collective agreements
568.10
*5.30
573.50
32.00
605.50
Registered individual agreements
762.90
*7.30
770.20
*17.40
787.70
Unregistered individual agreements
702.60
8.50
711.00
17.10
728.10
Total
619.60
5.50
625.10
27.70
652.80

Source: Employee Earnings and Hours, Australia (6306.0).


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