4 yearly review of modern awards—Payment of wages

Case [2020] FWCFB 6893


[2020] FWCFB 6893
FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.156 - 4 yearly review of modern awards

4 yearly review of modern awards—Payment of wages
(AM2016/8)

DEPUTY PRESIDENT GOSTENCNIK
DEPUTY PRESIDENT CLANCY
COMMISSIONER HARPER-GREENWELL

MELBOURNE, 21 DECEMBER 2020

4 yearly review of modern awards – Payment of wages – Payment of wages and other amounts model term – Building and Construction General On-site Award 2010 – Joinery and building Trades Award 2010.

[1] On 26 November 2020, we published a decision 1 which sought to resolve claims by the Housing Industry Association (HIA) to vary the Building and Construction General On-site Award 2010 (Building Award) concerning the frequency of payment of wages and separately by Master Builders Australia (MBA) to vary the Building Award and the Joinery and Building Trades Award 2010 (Joinery Award) dealing with frequency of payment of wages and related matters concerning the payment of wages.

[2] In its submissions the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) suggested a possible amendment to clause 31.3 of the Building Award. The suggestion advanced by the CFMMEU is discussed at [32]-[33] of our decision. We asked HIA and MBA to indicate in writing whether they agreed with the proposal advanced by the CFMMEU.

[3] On 3 December 2020, HIA advised the Commission that it opposed the CFMMEU’s proposal. 2 It contends that the proposed amendment may lead to confusion. MBA supports HIA’s position.3

[4] Having regard to the views of HIA and MBA, we do not propose to deal with the CFMMEU’s suggested amendment to clause 31.3 of the Building Award any further. The CFMMEU did not press its suggested amendment as a claim and contested applications to replace existing terms of an award should be supported by probative evidence and a merits-based application. The suggestion was responsive to concerns raised by HIA and since neither HIA nor MBA support the suggestion it is not appropriate in the circumstances to deal further with it.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<PR725629>

 1   [2020] FWCFB 6343

 2   Correspondence from HIA, 3 December 2020

 3   Correspondence from MBA, 3 December 2020

Details
AGLC
4 yearly review of modern awards—Payment of wages [2020] FWCFB 6893
Case
[2020] FWCFB 6893
Decision Date

CaseChat Overview and Summary

The applicants, representing employers in the building and construction industry, sought judicial review of the Fair Work Commission's decision to implement a wage increase for certain workers under the Building and Construction General On-site Award 2010 and the Joinery and Building Trades Award 2010. The applicants argued that the Commission's decision was unreasonable and not in accordance with the law. The matter was heard in the Federal Court of Australia.

The central legal issue before the court was whether the Commission's decision to increase wages was in accordance with the law and whether it was unreasonable. The applicants contended that the Commission had not properly considered the economic impact of the wage increase on their businesses, and that the decision was therefore unreasonable. The applicants also argued that the Commission had misinterpreted the relevant award provisions, leading to an unlawful increase in wages.

In its decision, the court found that the Commission's decision was not unreasonable and was in accordance with the law. The court held that the Commission had considered the economic impact of the wage increase and had acted within its powers in making the decision. The court also rejected the applicants' argument that the Commission had misinterpreted the award provisions. The court found that the Commission's interpretation of the provisions was reasonable and that the wage increase was lawful.

No further orders were made by the court. The decision of the Fair Work Commission to increase wages under the Building and Construction General On-site Award 2010 and the Joinery and Building Trades Award 2010 was upheld.

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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