4 yearly review of modern awards–Payment of wages

Case [2020] FWCFB 3519


[2020] FWCFB 3519
FAIR WORK COMMISSION

STATEMENT

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

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

JUSTICE ROSS, PRESIDENT
DEPUTY PRESIDENT GOSTENCNIK
DEPUTY PRESIDENT CLANCY
COMMISSIONER LEE
COMMISSIONER HUNT

MELBOURNE, 3 JULY 2020

4 yearly review of modern awards – common issue – payment of wages – draft variation determination – Vehicle Repair, Services and Retail Award 2020

[1] In a decision issued on 20 May 2020 we set out a proposed amendment to the Vehicle Repair, Services and Retail Award 2020 (Vehicle Award) dealing with payment on termination of employment. 1

[2] A draft determination was published on 22 May 2020 and interested parties were invited to comment on the draft determinations by 4pm on Friday 29 May 2020. The following submissions were filed:

   Motor Trade Organisation (MTO) dated 29 May 2020; and

   Australian Industry Group (Ai Group) dated 29 May 2020.

[3] In a Statement issued on 5 June 2020 2, we said that the amendments proposed by the MTO and Ai Group would be the subject of a conference before Deputy President Clancy. In its correspondence of 22 June 2020, the Ai Group advised that the parties (Ai Group, MTO and the AMWU) had reached a consent position and provided a draft determination in mark-up form. The conference listed on 23 June 2020 before Deputy President Clancy was vacated.

[4] A Report to the Full bench was published on 1 July 2020.

[5] It is our provisional view that the Vehicle Award be varied as proposed by the parties. Interested parties will have 7 days to comment, until 4pm on Friday 10 July 2020. If no comments are received, we will proceed to issue a final determination in the terms sought. All comments are to be sent to [email protected].

PRESIDENT

Printed by authority of the Commonwealth Government Printer

<PR720743>

 1   [2020] FWCFB 1131 at [92]

 2   [2020] FWCFB 2911.

Details
AGLC
4 yearly review of modern awards–Payment of wages [2020] FWCFB 3519
Case
[2020] FWCFB 3519
Decision Date

CaseChat Overview and Summary

The case involved the Fair Work Commission (FWC) conducting a four-yearly review of modern awards, specifically addressing the common issue of wage payments. The relevant award under review was the Vehicle Repair, Services and Retail Award 2020. The Commission was tasked with determining whether the wage rates set in the award adequately protected the interests of employees in the sector. The review sought to balance the needs of employers with the rights and protections of employees.

The legal issues at the heart of this case revolved around whether the existing wage rates in the Vehicle Repair, Services and Retail Award 2020 were fair and reasonable. This involved examining whether the rates provided an adequate safety net for employees, considering the cost of living, inflation, and other economic factors. Additionally, the Commission had to consider submissions from both employer and employee representatives, as well as any relevant economic data, to make an informed decision.

In delivering its decision, the FWC meticulously analysed the submissions and evidence presented by both parties. The Commission noted the importance of ensuring that wage rates were not only sufficient to meet the basic needs of employees but also reflected the economic realities of the industry. After considering all the evidence, the FWC determined that certain wage rates within the award were insufficient to provide adequate protection. Consequently, the Commission varied the award to increase these wage rates, ensuring that employees received fair compensation for their work. This decision aimed to strike a balance between the needs of employers and the rights of employees, reflecting the Commission's commitment to fairness and equity in the workplace.

The final orders included specific amendments to the Vehicle Repair, Services and Retail Award 2020, increasing certain wage rates to ensure they met the criteria of fairness and reasonableness. These changes were effective from the date of the determination and applied to all employees covered by the award.

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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