The result of the NSW state election could embolden union bargaining across the country. 

Trade unions nationwide are demanding pay rises in line with inflation following Labor’s win in the New South Wales state election.

The movement has already led to a credit rating agency warning of knock-on effects for other states, particularly Victoria, and has caused concern over the impact on financial ratings. 

The first major bargaining round under the Albanese government is expected to be a tough battle. 

The federal public sector union has made a 20 per cent wage increase claim to compensate public servants for rising inflation. It is said that the incoming NSW Labor government's budget will not move the needle on the state's AA+ rating, but the wage policy is a risk that the agency is monitoring. 

Some unions have suggested that the Queensland government’s 7 per cent pay boost to teachers and nurses last year could be a way forward. The new NSW Labor government plans to maintain targets of 3-3.5 per cent wage growth in 2023-24 and reopen public school teachers’ award before its expiry at the end of the year.