Annual Wage Review 2011–12

[2011] FWA 7916

[2011] FWA 7916

FAIR WORK AUSTRALIA

STATEMENT

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

Annual Wage Review 2011–12
(C2012/1)

JUSTICE GIUDICE, PRESIDENT MELBOURNE, 22 NOVEMBER 2011

[1] A draft research program for the 2011-12 Annual Wage Review was published in a statement issued on 24 October 2011. 1 Submissions and suggestions in relation to the draft were sought by 4 November 2011.

[2] On 28 October 2011 the Australian Council of Trade Unions (ACTU) made a submission in relation to the last item on the draft program. That item is:

“The elasticity of hours worked with respect to changes in minimum wage rates

The Minimum Wages and Research Branch of Fair Work Australia will investigate the feasibility of research into the elasticity of hours worked in response to changes in minimum wages.

At research consultations on 21 September 2011 no suitable methodology or data source was identified to answer this research question. An open tender process will be considered to determine whether research is feasible.”

[3] The ACTU pointed out that the elasticity of hours worked is “a highly contested topic”. It expressed the view that because any studies commissioned by Fair Work Australia will acquire an “official imprimatur”, Fair Work Australia should investigate the feasibility of conducting research using a methodological approach “that is broadly accepted by all parties”.

[4] The Panel agrees with the ACTU that the research question is a potentially controversial one. It is desirable that the main parties with an interest are consulted in relation to the methodology for the research. That can be achieved utilising the normal consultative process followed by the Minimum Wages and Research Branch in relation to research issues.

[5] It is unnecessary to make any variation in the draft research program as a result of the ACTU’s submission. It should be stressed, however, that at this stage the Panel is concerned with the feasibility of research into the elasticity of hours worked with respect to minimum wages, rather than with the research itself. There are several approaches that could be followed. For example, expressions of interest might be called for incorporating an outline of proposed methodologies, scope and indicative costs. The possibility of a joint ARC linkage grant application might also be considered.

[6] The draft research program, as published on 24 October 2011, is confirmed.

PRESIDENT

 1   [2011] FWA 7288.

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