Labor Unions in Australia 2025: Policy, Power & Worker Impact

As 2025 unfolds, labor unions in Australia are facing a landscape marked by rapid economic shifts, evolving workplace norms, and major policy reforms. For millions of workers, unions remain a crucial force—championing fair wages, safer conditions, and a louder voice at the negotiating table. But as new technologies and flexible work models reshape the job market, what role do unions play in the modern Australian economy?

Labor Unions: A Snapshot of Their Modern Influence

Union membership in Australia has steadily declined over the past few decades, dropping from 40% in the early 1990s to around 13% of the workforce in 2025. Yet, their influence in shaping employment laws, collective bargaining, and workplace culture remains significant. In 2025, unions are:

• Negotiating sector-wide agreements in industries like healthcare, education, construction, and logistics

• Advocating for stronger protections for gig economy and casual workers

• Pressuring government and employers to close the gender pay gap and address wage theft

• Helping workers transition as automation and AI impact traditional jobs

Unions have also become more visible in public debates, using social media and digital campaigns to mobilise support and inform members.

Policy Changes Shaping Union Activity in 2025

The Albanese government’s 2025 reforms—following the Secure Jobs, Better Pay Act—have reshaped the industrial relations landscape. Key policy updates include:

• Multi-employer bargaining: Allowing unions to negotiate pay and conditions across multiple employers, particularly in low-paid sectors like aged care and childcare.

• Crackdown on wage theft: New federal laws introduced in July 2025 criminalise deliberate underpayment of wages, with unions empowered to audit and report non-compliance.

• Stronger rights for gig workers: Recent Fair Work Commission rulings, supported by union advocacy, have extended minimum pay and unfair dismissal protections to rideshare and delivery drivers.

• Focus on gender equity: Unions have driven negotiations for paid parental leave expansions and mandatory pay transparency in large organisations.

These changes have strengthened the hand of unions in collective bargaining, but also sparked debate among employers about flexibility and competitiveness.

Case Studies: Unions in Action

Recent examples highlight how unions are responding to the challenges of 2025:

• Health and Aged Care: The Australian Nursing and Midwifery Federation (ANMF) secured a 7% pay rise for nurses and care workers after a coordinated campaign, addressing staff shortages and burnout.

• Transport and Logistics: The Transport Workers’ Union (TWU) won safer work standards and improved accident insurance for food delivery riders, after a series of high-profile incidents and strikes.

• Retail: The Shop, Distributive and Allied Employees’ Association (SDA) negotiated new agreements with major supermarket chains to guarantee predictable rosters and boost penalty rates for weekend work.

These wins highlight how union action can deliver tangible benefits for members—even as industries transform around them.

The Road Ahead: Challenges and Opportunities

Despite recent successes, unions face ongoing headwinds:

• Membership is still low among young and migrant workers, especially in hospitality and tech

• Some employers are resisting multi-employer bargaining, citing cost and red tape

• Remote work and casualisation make it harder to organise and represent workers collectively

But unions are adapting. Many are:

• Rolling out digital platforms for joining, voting, and accessing legal support

• Partnering with community groups to reach underrepresented sectors

• Engaging in climate and social justice campaigns, linking worker rights to broader societal issues

As the world of work continues to evolve, Australian unions will need to innovate to remain relevant and effective—balancing tradition with new strategies to protect workers in the modern economy.