Imagine you were trying to design a system that would hold back wages. You would design one pretty much like the one we've got today.
That's why the government wants to change it.
Those of us on enterprise bargaining agreements get our wage rises locked in only every three or so years. If we didn't lock in enough in last year's agreement to cover this year's sudden outbreak of inflation, there's nothing much we can do about it for another two or so years.