Industrial disputes filed by employees and workers in Australia rose to 66 during the September period, resulting in more working days lost and industries paralyzed, according to the Australia Bureau of Statistics.

In newly released ABS data for the September quarter 2011, there were 66 disputes, as 13 more filed for industrial action involving 66,400 workers.

The ABS called this a significant increase compared to the June quarter 2011 as the disputes resulted in 101,300 working days lost that could also cut production in the coal mining sector.

In the September quarter 2011, New South Wales accounted for 52,900 (52 percent) of working days lost. New South Wales also had the highest number of working days lost per thousand employees (16.8) for the quarter, the ABS data said.

"The industrial dispute statistics released today should be a huge wakeup call for the government," Ai Group Chief Executive Heather Ridout said.

Ridout pointed out that the current industrial scene is deeply worrying because of its growing adverse impact on the flexibility and performance of key industrial sectors at a time when increasing flexibility and responsiveness are called for.

"We all knew the Fair Work Act would increase union power, but there has also been a discernable negative change in union culture and behaviour. This was something which we warned may happen when the act came in," she said.

The Ai Group's representative said the Fair Work Act introduced into Parliament had actually pressed the boundaries of the legislation over the past two and a half years and the interpretations which the courts have placed on some of the sections, for example the General Protections.

She noted that the industrial dispute statistics could confirm a further deterioration in the industrial environment

The Ai earlier on Thursday released the The Australian PMI®, indicating that industrial activity was barely unchanged, up just 0.4 points to 47.8, to remain below the 50 points level separating expansion from contraction.

Manufacturing continues to be affected by a range of factors, with businesses citing low levels of building activity, competition from cheap imports, skilled labour shortages and uncertainty over the impacts of the carbon tax as impediments to stronger performance in November. Construction materials, clothing and footwear and wood products and furniture were the worst-performing sub-sectors in the month while transport equipment and miscellaneous manufacturers registered strong levels of activity.