ABS wages data released this week underlines the need for workers to join together if they want pay rises that keep up with inflation, as collective agreements deliver by far better pay outcomes.

Data for the December quarter shows that annual wages growth has remained steady at 3.4%. With annual inflation at 3.8%, average workers’ incomes have dipped below cost-of-living expenses, such as higher rents, which grew by 4% last year on top of steep rises over the last five years.

However, workers on collective agreements continue to get ahead, with wage growth averaging 4.1%. Individual contract pay rises of just 3% dragged average wage growth down.

Wage rises for aged care workers, which came into effect in October, were also reflected in the figures, due to a hard-fought union campaign to win work value pay increase.

“Workers on union-negotiated agreements continue to be the winners, with a huge gulf now between their average pay rises and those on individual contracts. Collective bargaining is the best way to ensure you keep ahead of the cost of living," said Australian Council of Trade Unions Secretary Sally McManus.

Australian unions are also campaigning for fairer access to housing, through the scaling back of the capital gain tax discount from 50% to 25% and limiting negative gearing concessions to one investment property.