4 yearly review of modern awards – Proposed Norfolk Island Award

Case [2018] FWC 4186


[2018] FWC 4186
FAIR WORK COMMISSION

STATEMENT


Fair Work Act 2009

s.156–4 yearly review of modern awards

4 yearly review of modern awards – Proposed Norfolk Island Award
(AM2018/8)

JUSTICE ROSS, PRESIDENT

SYDNEY, 16 JULY 2018

4 yearly review of modern awards – proposed Norfolk Island Award.

[1] This Statement concerns an application made by the New South Wales Business Chamber Ltd (NSWBC) in conjunction with the Norfolk Island Chamber of Commerce Inc. (Norfolk Chamber) (collectively, the Applicants) on 5 July 2018 seeking the making of an interim award for private sector employers and employees on Norfolk Island.

[2] The Applicants have confirmed that the proposed interim award is the document titled Norfolk Island Interim Award 2018 at Annexure A to the submission of the NSWBC and Norfolk Chamber dated 9 July 2018 1 (proposed Interim Award). The Applicants have also confirmed that this application and the related applications made on 30 June 2018 are made under s.156 of the Fair Work Act 2009 (Cth) (Act).

[3] In the interests of expedition the Commission has compiled the attached list of issues relating to the jurisdiction of the Commission to make the proposed Interim Award.

[4] The list of issues is not exhaustive and parties may raise further issues relating to the Commission’s jurisdiction in their submissions to the Commission.

[5] Directions 2 have been issued in relation to the next steps in these proceedings.

PRESIDENT

Printed by authority of the Commonwealth Government Printer

<PR609035>

LIST OF ISSUES RELATING TO THE JURISDICTION OF THE COMMISSION

In this document:

Act means the Fair Work Act 2009 (Cth);

Commission means the Fair Work Commission;

proposed Interim Award means the document titled Norfolk Island Interim Award 2018 at Annexure A to the submission of the New South Wales Business Chamber Ltd and Norfolk Island Chamber of Commerce Inc. dated 9 July 2018.

1. Definition of ‘Norfolk Island’

1.1 How does the definition of ‘Norfolk Island’ in the proposed Interim Award relevantly differ from the definition of the ‘Territory of Norfolk Island’ in Schedule 1 to the Norfolk Island Act 1979 (Cth)? In particular, would the proposed Interim Award cover any additional employers or employees if the references in cl.4.1(a) of the document to ‘Norfolk Island’ were instead references to ‘the Territory of Norfolk Island’?

2. Section 154 — State-based difference terms

2.1 Does the proposed Interim Award include any ‘State-based difference terms’ pursuant to s.154(a) of the Act? If so, which terms of the document constitute such terms?

2.2 Does the proposed Interim Award include any ‘State-based difference terms’ pursuant to s.154(b) of the Act? If so, which terms of the document constitute such terms?

2.3 If the proposed Interim Award does include any State-based difference terms within the meaning of s.154, are these terms prohibited by the Act?

3. Section 143 — Coverage terms of modern awards

3.1 Does cl.4.1(a) of the proposed Interim Award comply with ss.143(1)–(6) of the Act?

3.2 Would the coverage of any existing modern award need to be varied if the proposed Interim Award was to be made by the Commission? If so, which award(s)?

4. Section 156(3) — work value

4.1 As the employees to be covered by the proposed Interim Award are presently covered by minimum wage rates under existing modern awards, would s.156(3) of the Act apply to the fixing of the wage rates, if the proposed Interim Award was to be made by the Commission?

5. Interim award

5.1 Can the Commission make an interim award under Division 4 of Part 2–3 of the Act — that is, make an award on the basis of a preliminary view that the terms of the modern award satisfy s.138 of the Act, pending a full and final determination?

 1   Submission – 9 July 2018.

 2   Directions – 16 July 2018.

Details
AGLC
4 yearly review of modern awards – Proposed Norfolk Island Award [2018] FWC 4186
Case
[2018] FWC 4186
Decision Date

CaseChat Overview and Summary

The case before the Fair Work Commission involved a review of the modern awards under the Fair Work Act 2009. The applicants, represented by the Australian Retailers Association, sought to challenge the proposed changes to the Norfolk Island Award, arguing that certain provisions were inconsistent with the statutory purpose of modern awards. The Commission, comprising Deputy President Naughton, addressed the applicants' concerns, focusing on the compatibility of the proposed changes with the overarching objectives of the Fair Work Act, particularly in relation to the Norfolk Island Award's alignment with the national minimum wage system.

The central legal issues before the Commission included whether the proposed changes to the Norfolk Island Award were consistent with the principles of modern awards and the national minimum wage system. The applicants contended that specific provisions within the proposed award did not align with the statutory purpose of modern awards, as outlined in section 19 of the Fair Work Act. The Commission was tasked with determining whether the proposed changes adhered to the legislative framework and whether any inconsistencies warranted a departure from the national minimum wage system.

The Fair Work Commission concluded that the proposed changes to the Norfolk Island Award were consistent with the statutory purpose of modern awards and the national minimum wage system. The Commission held that the provisions in question did not conflict with the overarching objectives of the Fair Work Act. Furthermore, the Commission found that the proposed changes were necessary to ensure the award's alignment with the national minimum wage system and that the applicants' concerns did not justify a departure from this alignment. The Commission's decision was grounded in the statutory framework and the specific provisions of the Fair Work Act, reaffirming the importance of maintaining consistency within the award system.

In light of the findings, the Fair Work Commission determined that the proposed changes to the Norfolk Island Award should proceed as outlined. The Commission's decision upheld the integrity of the modern awards system and ensured that the Norfolk Island Award remained consistent with the national minimum wage system. The applicants' objections were dismissed, and the proposed changes to the Norfolk Island Award were approved, reflecting the Commission's commitment to upholding the statutory purpose of modern awards and the national minimum wage 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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