The number of enterprise agreements has fallen to a 22-year low, piling more pressure on wages and job creation for millions of workers.
A new Business Council of Australia report released on Friday shows the number of new private sector agreements has plummeted 66 per cent compared to 2008/09.
Around 1.9 million people were on active enterprise agreements in September last year, down from a peak of 2.6 million in 2014.
The research found non-managerial workers on EBAs earned an average of $42 an hour compared with just $29.40 an hour for employees covered by awards.
Despite four million workers being on enterprise agreements and 2.2 million on awards, the number of active EBAs is at its lowest level for more than two decades.
BCA chief executive Jennifer Westacott said the situation was a disaster for Australians given the enterprise bargaining system led to higher wages and more job creation.
"We have to make EBAs once again a genuine alternative to awards," she said.
"We have to get back on the path of achieving the higher wages, strong productivity and jobs growth Australia enjoyed in the 1990s and 2000s."
The business council is using the research to urge parliament to pass the government's industrial relations reform bill.
The wide-ranging reform package would ensure the Fair Work Commission approves agreements in 21 days and make a range of other changes opposed by unions.
Ms Westacott said the industrial relations debate was returning to an "us and them" mentality that was killing reform.
"If we fail to make these important changes to the system, we risk condemning Australia to the slow lane and missing out on opportunities," she said.
"The system is hamstrung by technicalities and complexities. It is in danger of collapse."
The report found that workers covered by enterprise agreements were an average of $100 better off for each day of full work.
