As the nation ushered in a new era in workplace relations, unions secured an immediate victory when Telstra ended its year-long war with the ACTU and agreed to enter into a working relationship with unions, including a commitment to collectively bargain.

But union "celebrations" marking the introduction of the Fair Work Act coincided with employers expressing alarm at unions pushing for pay rises of 4 to 6 per cent in the critical manufacturing sector.

Business groups said unions that "go too hard, too early" would not only threaten their members' jobs, but potentially damage the nation's economic recovery.

The Treasurer urged unions to exercise restraint and said: "I don't necessarily think it's the time for anyone to go out there making extraordinary demands."

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