The failure of many Australian workers to get a real pay rise has been linked to a decline in industrial action, including strikes.

The findings follow the Fair Work Commission's decision last week to stop Sydney train workers from taking industrial action including restrictions on overtime and a one-day strike on Monday because it could damage the economy.

The analysis by the left-leaning Australia Institute Centre for Future Work think tank shows there has been a 97 per cent decline in industrial action from the 1970s to the present decade. Across Australia, there were 106 industrial disputes in the first nine months last year, close to a postwar era low.

The new report to be released on Tuesday found a correlation in the form of a "close statistical relationship" between a dramatic reduction in industrial activity and stagnation in wages. The report does not claim a direct link.

The analysis shows there has been a one percentage point deceleration in wage increases for every decline in the frequency of work stoppages of about 60 lost work days per 1000 workers per year.