Employers in Australia have been using individual contracts more often to set pay and conditions for employees. These contracts, like Australian Workplace Agreements (AWAs), can lead to higher pay for some employees, especially managers and skilled workers. However, for most employees, individual contracts may result in lower wage increases and fewer benefits compared to collective bargaining. Collective bargaining, where employees negotiate as a group, gives workers more power and often leads to better pay and conditions. When union membership is high, collective bargaining is even more effective. Some employees on individual contracts may receive higher pay, but this usually means they are giving up some of their power to their employers. Overall, individual contracts tend to shift power from employees to employers.