The one thing Australian workers aren't allowed to talk about at work – even though many of us do it without realizing it
A surprising number of Australian workers are not allowed to talk about how much they are paid to their colleagues.
A new report from the e61 Institute shows that a majority, or 58 percent, of employees were required to sign a non-disclosure agreement prohibiting them from discussing trade secrets, including how much they were paid.
A fifth, or 21 percent, of professionals had signed an agreement that prevented them from competing with their existing employer once they resigned.
The report by Dan Andrews, Michael Brennan and Jack Buckley suggested strict regulations, which banned them from competing with their old employers, had stifled innovation and contributed to wages stagnating for more than a decade until recently.
A surprising number of Australian workers are banned from talking about their work as wages finally rise again (pictured is a stock photo)
“The slowdown in productivity and wage growth in Australia over the past 15 years has been characterized by a decline in labor mobility and business entry,” the spokesperson said.
'The proliferation of non-compete and other post-employment restrictive clauses may have contributed to this decline.
“Constraints are common in knowledge-based service industries, potentially compromising talent allocation.”
The e61 Institute said confidentiality clauses had also damaged the interests of low-paid workers.
“Many companies apply restrictive clauses indiscriminately, potentially negatively impacting low-wage workers who lack bargaining power,” the report said.
Before December 2022, employers could be forced to sign non-disclosure agreements over pay until Prime Minister Anthony Albanese's government changes the Fair Work Act.
But Australian wages are finally on the move again, with the wage price index for the December quarter of 2023 growing at an annual rate of 4.2 per cent – the fastest level since the March 2009 quarter during the global financial crisis.
This was higher than last year's inflation of 4.1 percent.
For the first time since the beginning of 2021, wages have exceeded inflation, meaning that workers can once again enjoy real wage growth.
Public sector wages rose by 4.3 percent.
Westpac senior economist Justin Smirk said public sector wages have risen as a result of new enterprise deals in health, education and training.
Treasurer Jim Chalmers said Australians were still suffering from cost-of-living pressures and higher mortgage repayments after the Reserve Bank of Australia raised interest rates for the 13th time in 18 months in November to a 12-year high of 4.35 per cent.
“While annual real wages are now rising, we know Australians are still under the pressure of high but moderating inflation and higher interest rates,” he said.
A new report from the e61 Institute shows that a majority, or 58 percent, of employees were required to sign a non-disclosure agreement banning them from discussing trade secrets (pictured is a Sydney waitress)
Australian wages remained below the long-term average of three per cent between the June 2013 quarter and the June 2022 quarter.
Wages eventually recovered, but inflation reached a 32-year high of 7.8 percent in late 2022 after Russia's invasion of Ukraine sent crude oil prices soaring.
As wages continued to grow, Australia entered a per capita recession in the March quarter of 2023, with output per work declining.