Australian workers have more bargaining power post-lockdowns, ACTU says
The University of Sydney earlier this week declared it would pay staff a bonus, declaring the $2,000 “Covid recognition payment” an extraordinary measure in gratitude for their “remarkable and sustained service”.
While the university described the payment as thanks for enduring “this most testing of years”, it also hinted at an additional motive.
Student numbers have unexpectedly risen, including from abroad, giving the university the financial capacity, but also the incentive to retain staff.
Indeed, the prospects for many employers across the country have improved sharply in recent months as federal and state government largesse to counter the pandemic disruptions fills consumers’ savings accounts and the order books of businesses.
Staff are suddenly in high demand. “Workers have got this brief period of time with the borders closed where they’ve got more individual bargaining power,” Sally McManus, the secretary of the Australian Council of Trade Unions, told Guardian Australia.
“They are choosing to leave jobs, especially if they are not secure, and are looking for ones that are,” she said, adding they are in a good position to demand a fixed-term contract or a guaranteed number of hours.
McManus said the labour shortages are appearing mostly at the lower end of the salary scale where employers “pay the award and not much more”. These include disability services, aged care, hospitality and retail.
The latest official reading on the labour force will surface on Thursday with the Australian Bureau of Statistics scheduled to release national jobs figures for October.
In line with the unusual nature of the economic rebound, the Commonwealth Bank’s chief economist, Gareth Aird, predicted the unemployment rate would increase to 4.7% from 4.6% in September, even though 50,000 jobs were added.
Sign up to receive an email with the top stories from Guardian Australia every morning
One reason for the anticipated higher jobless tally is that the participation rate will probably have picked up, from 64.5% to 64.8% in the month, as more people look for work.
Another is that the ABS survey spanned 26 September to 9 October, covering the depth of the lockdown involving the half of Australia living in New South Wales, Victoria and the ACT.
“It’s not going to be until next month – so the November employment report – that you’ll see the big lift in employment because of the reopening,”
Aird said.
Other statistics also point to growing confidence among workers that their jobs are relatively secure and they can either haggle for better terms or find takers elsewhere.
The Westpac Melbourne Institute Unemployment Expectations Index, released on Wednesday, dropped 11% from 107.1 to 95.3. The gauge measures concerns among consumers about losing their jobs over the next 12 months.
“[T]his is the lowest level for the Index since the mid-1990s, when resurgent growth was finally starting to see sustained declines in unemployment from the very high levels of the early 1990s recession,” Westpac said in a research note.
“Confidence is at historic highs for both males and females although the confidence amongst females is particularly buoyant – near all-time record levels going back to 1975.”
The bank identified employees as most confident in real estate, accommodation and food, health care and retail, and even media and telecommunications. These industries may face shortages in coming months, Westpac said.
Ross McEwan, the chief executive of National Australia Bank, was reported on Tuesday as saying securing employees was “our biggest issue that will inhibit growth the most”.
Jenny Lambert, the director of economics, employment and skills at the Australian Chamber of Commerce and Industry, said most signs were pointing to a “worker market” emerging, where staff were better placed to set terms with their employer.
The shortages might also become acute as construction work revs up. “There’s a huge issue in the infrastructure construction workforce”, with project managers, engineers and other skilled labour in short supply. Border closures because of Covid had made conditions harder for employers but better for Australians, she said.
“It’s a very important message to those that are unemployed to say there’s never been a more conducive time for you to get back into the workforce,” Lambert said.
Australia Post is among employers bracing for “our biggest Christmas period ever”, and fortunately for those waiting for festive season deliveries, the news seems promising.
To meet the record surge in online shopping and other services, “we sought to recruit more than 5,000 people,” a spokesperson said. “Currently [we] have more than 80% already filled.”