Wage rises to fall in WA

Western Australia may have experienced the largest wage increase in the nation but expectations the trend will continue have been doused, according to a new survey.

Last week the Australian Bureau of Statistics showed the average weekly full-time ordinary earnings in WA were $1,337.60 in February, up 6.3 per cent from the previous corresponding period.

The figure was above the national average weekly wage of $1,181.60.

However a new survey by the Australian Institute of Management (AIM) found that Western Australians expect the lowest wage increase in the country for 2009/10 as compared to last year's survey.

WA respondents forecast pay increases are likely to be down 1.8 per cent on the 2008/09 forecast to 3.9 per cent.

While WA expects the greatest decline, Victoria and Tasmania is forecasting the lowest annual pay movements at 3.1 per cent.

The survey forecast a national average wage increase of 3.5 per cent for 2009/10, down from the 4.3 actual increase reported in 2008/09.

The figures are from a national survey of 548 large companies with an annual turnover of $10 million.

Meantime, the survey found 23.5 per cent of respondents plant to shed permanent staff during the next 12 months, up significantly from 8.4 per cent in its 2008 survey.

The negative fallout from the global economic downturn has just 39.6 per cent of companies expecting to increase their permanent staff levels in the next 12 months, down from 59.7 per cent in 2008.

Involuntary staff turnover is seen rising slightly to 4.8 per cent of employees in 2009, up from 3.8 per cent in the previous survey, while voluntary turnover is expected to fall to 12.2 per cent from 13.3 per cent.

The top reasons for resignations were to pursue new challenges (73.8 per cent) and to obtain better pay (52 per cent).

The survey found only 33.7 per cent of organisations expect to increase training budgets, down from 45.7 per cent in the previous year, while 52.5 per cent expect training budgets to remain the same.