The SDA is calling for workers to get their fair share of productivity gains in the form of increased wages, more leave or shorter hours ahead of the Federal Government’s Economic Reform Roundtable in August 2025.
This week, the Federal Government is holding an Economic Reform Roundtable focusing on improving living standards through discussions on:
-
Making the Australian economy more productive.
-
Building resilience in the face of global uncertainty.
-
Strengthening the budget and making it more sustainable.
Ahead of this roundtable, the SDA and the McKell Institute have released a joint report debunking the assumption that a boost in productivity flows through to living standards and wages.
When looking at productivity and wages in the retail sector, the Achieving the Productivity Promise Report finds that:
-
Since 2007, worker productivity has grown by 26% in the retail sector but real wages have fallen by over 1%, representing a 27% ‘productivity debt’ in retail.
-
Productivity growth in the retail sector has outpaced the average of all industries over this period, but real wages growth has underperformed.
-
In real terms, the average total annual earnings for retail workers has fallen by $400 since 2007. Over this same period, profits in the industry have increased by $22 billion in real terms.
In the wake of the Economic Reform Roundtable, the SDA is calling for:
-
The establishment of a formal ‘productivity dividend’ which would ensure a proportion of productivity gains are directed toward workers. For example, through wage rises and increased leave entitlements or shorter working hours.
-
The establishment of mandatory ‘productivity debt’ reporting by large firms, similar to gender pay gap reporting.
“Retail workers have delivered more productivity growth than most sectors and yet that benefit has not flowed through”
Gerard Dwyer, SDA National Secretary
Australia’s retail sector, which employs over 1.2 million Australians, and has seen greater productivity increases over the past two decades than in other sectors. We need to develop economic mechanisms to ensure that workers – alongside businesses – stand to benefit from productivity gains.
The Australian Council of Trade Unions is representing the union movement at this roundtable, and it’s an important way to bring the issues that matter to SDA members at work to a national level.
As AI, housing affordability and working hours pose new challenges to working people, we must ensure that the best interests of Australian workers are front and centre.
We know that higher wages and more time off is important to you and as your union, the SDA will always make sure your voice is heard.
Read the full McKell Institute: Achieving the Productivity Promise Report