Annual Wage Review 2010-11 - [2011] FWA 619

[2011] FWA 619

FAIR WORK AUSTRALIA

STATEMENT

Fair Work Act 2009
s.285—Annual wage reviews to be conducted

Annual Wage Review 2010-11
(C2011/1)

JUSTICE GIUDICE, PRESIDENT

MELBOURNE, 31 JANUARY 2011

ANNUAL WAGE REVIEW 2010-11 – JUNIORS AND TRAINEES

[1] The Minimum Wage Panel is required to set special national minimum wages for award/agreement free junior employees and employees to whom training arrangements apply in the Annual Wage Review 2010-11 and include those minimum wages in the National Minimum Wage Order resulting from the review. In its decision in the Annual Wage Review 2009-10 the Minimum Wage Panel referred to this requirement and also to a proposal for a broad review of apprentice and trainee wages and conditions. 1 The decision indicated that the President would convene a conference to discuss these issues.

[2] In a statement published on 17 June 2010 interested parties and bodies were invited to attend a conference. 2 It was indicated in the statement that two of the matters that might be dealt with in the conference were whether there should be a broad review of wages and conditions for employees to whom training arrangements apply and, if so, whether the review should be joined with the process to set minimum wages for award/agreement free junior employees and employees to whom training arrangements apply in the Annual Wage Review 2010-11. Written proposals were sought to facilitate discussion at the conference and a number of proposals were received. The conference was originally scheduled for 24 August 2010 but was postponed because of the Federal election and eventually took place on 22 October 2010. The proceedings were recorded and the transcript is available, along with other relevant material, on the Fair Work Australia website under the Annual Wage Review 2010-11.

[3] In light of the written proposals and the views expressed at the conference on 22 October 2010, it does not appear practical to initiate a broad review of apprentice and trainee wages and conditions at this time. That view is based on a number of considerations.

[4] On 16 July 2010 the Australian Government announced that it had established an expert panel to advise on reform options for the Australian apprenticeship system to meet the skills needs of the Australian economy. The panel is called the Apprenticeships for the 21st Century Panel (the expert panel). The expert panel is comprised of representatives of industry, unions and academia. Its terms of reference are broad and include an examination of the interaction of the Australian apprenticeship system with modern awards and other employment regulation for apprentices. The full terms of reference are an attachment to a submission made by the Chair of the Panel dated 27 August 2010. 3 The expert panel is expected to report in early 2011. The Australian Government has indicated that it will need time to consider the report and develop a response to it.

[5] Any review of modern award wages and conditions for employees to whom training arrangements apply should take into account the other elements of the relevant regulatory framework. As the Australian Government and others submitted, until it is reasonably clear what those other elements will be it would be premature to embark on a review of award terms and conditions. In the circumstances it is unlikely that a review could commence in the first half of 2011.

[6] Because of the terms of s.285 of the Fair Work Act 2009 the Annual Wage Review 2010-11, including the fixation of special national minimum wages for award/agreement free junior employees and employees to whom training arrangements apply, must be completed by 1 July 2011. It would therefore not be practical to undertake a broader review of wages and conditions for those employees in conjunction with the next Annual Wage Review.

[7] Further consideration can be given to the possibility of a broader review in light of developments in 2011. Those developments would include at least the report of the expert panel, the Australian Government’s response to that report and any relevant legislation.

[8] Interested parties and bodies wishing to make a submission in relation to the fixation of special national minimum wages for award/agreement free junior employees and employees to whom training arrangements apply should make their submissions in accordance with the published timetable for the Annual Wage Review 2010-11.

PRESIDENT

1 [2010] FWAFB 4000.

2 [2010] FWA 4492.

3 by authority of the Commonwealth Government Printer