The pay rise move that could earn you an extra $250 a week
Most Australians are missing out on around $250 a week, and many don't realise it.
The difference comes down to one decision: whether you negotiate your pay alone or together with your colleagues.
When people bargain collectively, they win higher pay. The latest ABS figures show annual wage growth of 4.1% for workers on collective agreements, compared to 3% for those on individual agreements.
Over the course of a career, this widening gap adds up to tens of thousands of dollars in lost income. Factor in reduced superannuation contributions on top of that, and the difference is even starker.
Collective agreements are won and maintained by union members, so the more union members in a workplace, the more negotiating power workers have, resulting in better pay rises.
That is one of many reasons why union membership is now growing at its fastest rate in over a decade, particularly among younger workers.
The lowest pay rises come from people negotiating on their own, landing at only 3% over the past year. This isn't surprising - it's easy for an employer to say 'no' to one person, but it's much harder to say 'no' to their whole workforce.
Union fees are tax-deductible and cost as little as $10-$15 a week. In return, union members on average receive about $250 a week in higher wages. That payoff adds up fast and compounds year after year, like any reliable investment.
Membership also protects you when things go wrong. If your employer ever tries to short-change you or push you out, you will have trusted experts supporting you.
People spend a lot of time comparing the best investment options to get ahead financially. But one of the most reliable levers for boosting earnings is your very own bargaining power.
Some people assume unions are for someone else. But if you earn a wage, they're for you.
To find out which union you belong to, visit the Australian Unions website and sign up.
Joining your union is one of the smartest financial decisions you can make - and your future self will thank you for it.
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