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ARTICLE · 13 OCTOBER 2014

Two-tier wages systems for Woolworths and Coca Cola

Holding Redlich
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A two-tier wages system in enterprise bargaining offers different rates of pay for new employees and existing employees.

AustraliaEmployment and HR

An interesting recent trend has emerged in enterprise bargaining in Australia: a two-tier wages system where there are different rates of pay for new employees and existing employees.

A proposed new enterprise agreement for a Woolworths distribution centre in Melbourne, having been approved by a majority of voting employees, is being sought to be approved by the Fair Work Commission. And a new enterprise agreement for a Coca-Cola Amatil warehouse in Victoria has recently been approved by the Fair Work Commission after it was approved by a majority of voting employees. Both workplaces have union coverage of some existing employees: SDA and NUW at Woolworths and United Voice at Coke.

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