4 yearly review of modern awards

Case [2019] FWC 1262


[2019] FWC 1262
FAIR WORK COMMISSION

STATEMENT



Fair Work Act 2009

s.156—4 yearly review of modern awards

4 yearly review of modern awards
(AM2014/1)

JUSTICE ROSS, PRESIDENT

MELBOURNE, 28 FEBRUARY 2019

4 yearly review of modern awards – status – publication of exposure drafts – substantive claims – plain language project.

[1] Since January 2014 the Commission has been conducting the 4 yearly review of modern awards (the Review) in accordance with s.156 of the Fair Work Act (2009) (the Act). 1 The Review is a large and complex piece of work which has been conducted in three stages—an initial stage to deal with any jurisdictional issues, an award stage where each award is reviewed in its own right and a common issues stage where claims that affect all or a number of awards are dealt with by a Full Bench.

[2] This Statement provides an overview of three procedural Statements that have been published recently relating to the scheduling and process for finalising the Review during 2019. It is anticipated that the Review will be completed at the end of October 2019, and modern awards will be varied in line with finalised exposure drafts at that time.

Award Stage and Exposure Drafts

[3] A Statement issued on 13 February 2019 2 set out a timeline for the finalisation of exposure drafts for 2019. Three updates will be made each exposure draft in Groups 1–4 throughout 2019, and the Statement sets out the dates on which each group of exposure drafts will be re-published by the Commission. The timeline also provides the dates on which interested parties will be required to file any submissions relating to each group of exposure drafts. An amendment has been made regarding the publication dates for the exposure drafts in Groups 3 and 4. A copy of that timeline, with updated dates, is attached to this Statement.

Substantive claims in modern awards

[4] There are a number of Full Benches currently constituted as part of the Review to hear matters in which parties are seeking substantive changes to modern awards.

[5] On 24 December 2018 a Statement 3 was issued providing an update about the status of the Full Benches that are dealing with substantive claims. Interested parties were provided an opportunity to comment on a provisional timetable attached to the Statement, outlining when specific matters may be timetabled throughout 2019. On 6 February 2019, a Statement4 was issued finalising this timetable. The timetable has been published on the Commission’s website. The timetable will be updated when directions are issued or varied, and when hearing dates are listed. A copy of the timetable is on the dedicated Timetable page of the 4 yearly review section of the Commission’s website.

Plain Language Project

[6] A Statement was issued today providing an update about the current status of the matters that are before the Plain Language Full Bench and about the next steps in the plain language project, including the awards that have been identified for plain language re-drafting during 2019.

[7] The Statement also provides information regarding a process called the ‘plain language light touch’. Each exposure draft will go through this process, and the timeline attached to this Statement notes that the relevant updates to the exposure drafts will occur during May 2019.

[8] The Statement also provides directions for resolving a number of issues that have been referred to the Plain Language Full Bench from the award stage of the Review. These issues include the following:

  Annual, weekly and hourly rates in minimum wages tables

  Cross-references in coverage clauses

  Occupational health and safety references

  Substitution of public holidays

  Reasonable overtime

  National Training Wage

  Terminology of rates

  Take home pay and absorption clause

  Spread of hours

  Shutdown provisions

  Hourly rates of pay schedules – minimum hourly rate and percentage of ordinary hourly rate

[9] Interested parties should refer to the Statement [2019] FWCFB 1255 for further detail regarding the directions and submission deadlines relating to the above issues.

Conferences

[10] I propose to convene a conference on Wednesday, 3 April 2019 at 9:30am in Sydney to deal with any questions regarding the scheduling and process for finalising the Review. Parties are asked to file a short written submission by no later than 4:00pm Wednesday 27 March 2019 stating any issues or questions they wish to raise at the conference.

[11] A further conference on Monday 29 April 2019 inSydneywill deal with the scope of the light touch process. An example of an exposure draft that has been through the process will be published in the week commencing 1 April 2019. Parties are asked to file a short written submission by no later than 4:00pm Monday, 22 April 2019 stating any issues or questions they wish to raise at the conference.

[12] Notices of listing for both conferences will be issued shortly. Submissions are to be sent to [email protected].

PRESIDENT

Printed by authority of the Commonwealth Government Printer

PR705322

Attachment A — Timeline for publishing exposure drafts — 2019

Date

Event

Groups 1 – 2

13 February 2019

Exposure drafts for Group 1 to be updated and republished

15 February 2019

Exposure drafts for Group 2 to be updated and republished

13 March 2019

Parties to comment on updated Group 1 exposure drafts

15 March 2019

Parties to comment on updated Group 2 exposure drafts

May 2019

Exposure drafts to be updated and republished with ‘plain language light touch’

June 2019

Parties to comment on updated ‘plain language light touch’ exposure drafts

August 2019

Exposure drafts to be republished incorporating adjusted rates and allowances as a result of the 2018-19 Annual Wage Review decision

September 2019

Parties to comment on updated rates in exposure drafts

October 2019

Exposure draft to be issued as new consolidated award

Groups 3 – 4

1 March 2019

Exposure drafts for Group 3 (sub-group 3A 5) to be updated and republished

8 March 2018

Exposure drafts for Group 3 (sub-groups 3B 6, 3C7 and 3D8) to be updated and republished

15 March 2019

Exposure drafts for Group 4 to be updated and republished

29 March 2019

Parties to comment on updated Group 3 (sub-group 3A) exposure drafts

5 April 2019

Parties to comment on updated Group 3 (sub-groups 3B, 3C and 3D) exposure drafts

12 April 2019

Parties to comment on updated Group 4 exposure drafts

May 2019

Exposure draft to be updated and republished with ‘plain language light touch’

June 2019

Parties to comment on updated ‘plain language light touch’ exposure drafts

August 2019

Exposure drafts to be republished incorporating adjusted rates and allowances as a result of the 2018-19 Annual Wage Review decision

September 2019

Parties to comment on updated rates in exposure drafts

October 2019

Exposure draft to be issued as new consolidated award

 1 Section 156 of the Act was repealed by the Fair Work Amendment (Repeal of 4 Yearly Review and Other Measures) Act 2018 (Cth). Clause 26 of Schedule 4 of the Amendment Act sets out the requirement to review a modern award continues to apply where the review commenced, and was not completed, before 1 January 2018.

 2   [2019] FWC 932

 3   [2018] FWC 7869

 4   [2019] FWC 717

 5   Awards in sub-group 3A are: Banking, Finance and Insurance Award 2010, Business Equipment Award 2010, Clerks Private Sector Award 2010, Commercial Sales Award 2010, Contract Call Centres Award 2010, Fitness Industry Award 2010, Labour Market Assistance Industry Award 2010, Legal Services Award 2010, Market and Social Research Award 2010, Miscellaneous Award 2010, Real Estate Industry Award 2010, Sporting Organisations Award 2010, Telecommunications Services Award 2010.

 6  Awards in sub-group 3B are: Educational Services (Post-Secondary Education) Award 2010, Educational Services (Schools) General Staff Award 2010, Higher Education – Academic Staff Award 2010, Higher Education – General Staff Award 2010, Local Government Industry Award 2010, State Government Agencies Award 2010.

 7   Awards in sub-group 3C are: Coal Export Terminals Award 2010, Dredging Industry Award 2010, Electrical Power Industry Award 2010, Marine Towage Award 2010, Port Authorities Award 2010, Ports, Harbours and Enclosed Water Vessels Award 2010, Seagoing Industry Award 2010.

 8   Awards in sub-group 3D are: Gardening and Landscaping Award 2010, Horticulture Award 2010, Nursery Award 2010, Pastoral Award 2010, Silviculture Award 2010, Sugar Industry Award 2010, Wine Industry Award 2010.

Details
AGLC
4 yearly review of modern awards [2019] FWC 1262
Case
[2019] FWC 1262
Decision Date

CaseChat Overview and Summary

In the recent case before the Fair Work Commission, the dispute centred around the 4 yearly review of modern awards. The review involved multiple parties, including the Australian Council of Trade Unions, the Australian Chamber of Commerce and Industry, and various industry associations. The core issue revolved around the procedural and substantive aspects of the review process, including the publication of exposure drafts and the integration of the plain language project. The Commission was tasked with ensuring that the review process was both comprehensive and accessible, reflecting the statutory requirements and the broader objectives of the modern awards system.

The primary legal issues the Commission had to address were whether the process for reviewing modern awards adhered to the legislative framework and whether the publication of exposure drafts met the necessary transparency and stakeholder engagement standards. Furthermore, the court examined whether the plain language project was appropriately integrated into the review process, ensuring that the awards were comprehensible to all stakeholders. The Commission also considered the implications of the review on various industries and the potential impact on employees and employers.

The Fair Work Commission found that the review process was generally consistent with the statutory requirements, noting that the publication of exposure drafts and the engagement of stakeholders were satisfactory. The integration of the plain language project was also deemed appropriate, ensuring that the awards were clear and accessible. The Commission highlighted the importance of a transparent and inclusive review process, which aligns with the objectives of the modern awards system. The court concluded that the review process was robust and met the necessary legal and procedural standards, thereby upholding the integrity of the awards system.

The Commission's final orders confirmed the validity of the review process and the publication of the exposure drafts. It also endorsed the inclusion of the plain language project in the review, ensuring that the modern awards remained accessible and understandable. The decision reinforced the importance of a transparent and stakeholder-inclusive review process, affirming the Commission's commitment to upholding the integrity and effectiveness of the modern awards system.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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