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Annual Wage Review 2012–13

Annual Wage Review 2012–13

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Case Copied 3 June 2013 76 min read

Contents

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[2013] FWCFB 4000

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.285—Annual wage review

Annual Wage Review 2012–13
(C2013/1)

JUSTICE ROSS, PRESIDENT
SENIOR DEPUTY PRESIDENT WATSON
COMMISSIONER SPENCER
COMMISSIONER HAMPTON
MR VINES
PROFESSOR RICHARDSON
MR DWYER

MELBOURNE, 3 JUNE 2013

Contents

1.	The Decision
2.	The Statutory Framework
3.	The Parties’ Proposals
4.	The Economy
5.	Superannuation
6.	Relative Living Standards and the Needs of the Low Paid
Promoting Social Inclusion through Increased Workforce Participation
8.	Encouraging Collective Bargaining
9.	The Principle of Equal Remuneration for Work for Equal or Comparable Value
10.	Exceptional Circumstances/Special Circumstances Claims
11.	Other Matters
12.	Conclusion
Appendix 1—Proposed Minimum Wages Adjustments

Abbreviations

2009–10 Review decision	Annual Wage Review 2009–10 decision
2010–11 Review decision	Annual Wage Review 2010–11 decision
2011–12 Review decision	Annual Wage Review 2011–12 decision
2012 Amendment Act	Superannuation Guarantee (Administration) Amendment Act 2012
AAA	Accommodation Association of Australia
AAWI	average annualised wage increases
ABI	Australian Business Industrial
ABS	Australian Bureau of Statistics
ACCER	Australian Catholic Council for Employment Relations
ACCI	Australian Chamber of Commerce and Industry
ACOSS	Australian Council of Social Service
Act	Fair Work Act 2009
ACTU	Australian Council of Trade Unions
AFEI	Australian Federation of Employers and Industries
AHA	Australian Hotels Association
Ai Group	Australian Industry Group
AIRC	Australian Industrial Relations Commission
ANRA	Australian National Retailers Association
ANZSIC	Australian and New Zealand Standard Industrial Classification
APCSs	Australian Pay and Classification Scales
ARA	Australian Retailers Association
ARTIO	Australian Road Transport Industrial Organisation
AWE	average weekly earnings
AWOTE	average weekly ordinary time earnings
AWR	annual wage review
C10	Engineering Tradesperson Level I
C14	Engineering/Production Employee Level 1
CCIQ	Chamber of Commerce and Industry Queensland
Commission	Fair Work Commission
CPI	Consumer Price Index
DEEWR	Department of Education, Employment and Workplace Relations
EEH	Employee Earnings and Hours
GDP	gross domestic product
HES	Household Expenditure Survey
HIA	Housing Industry Association
HILDA	Household Income and Labour Dynamics in Australia
Manufacturing Award	Manufacturing and Associated Industries and Occupations Award 2010
LCI	Living Cost Index
MGA	Master Grocers Australia
MPMSAA	Master Plumbers and Mechanical Services Association of Australia
NAPSA	Notional Agreement Preserving State Awards
NFF	National Farmers’ Federation
NMW	national minimum wage
NRA	National Retail Association
NTWS	National Training Wage Schedule
OECD	Organisation for Economic Co-operation and Development
OTE	Ordinary Time Earnings
Panel	Minimum Wage Panel
R&CA	Restaurant and Catering Australia
RBA	Reserve Bank of Australia
Review	Annual Wage Review 2012–13
RNNDI	Real net national disposable income
SGC Acts	Superannuation Guarantee Charge Act 1992 and the Superannuation Guarantee (Administration) Act 1992
SG rate	Superannuation guarantee rate
Statistical Report	Statistical Report—Annual Wage Review 2012–13
SWSS	Supported Wage System Schedule
Transitional Act	Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
VACC	Victorian Automobile Chamber of Commerce
VECCI	Victorian Employers’ Chamber of Commerce and Industry
WPI	Wage Price Index

1. The Decision

[1] The Fair Work Act 2009 (the Act) requires the Minimum Wage Panel (the Panel) of the Fair Work Commission (the Commission) to conduct and complete a review of minimum wages in modern awards…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2013] FWCFB 4000
Decision Date: 3 JUNE 2013

CaseChat Overview and Summary

In the 2012–13 annual wage review, the Fair Work Commission was required to set, vary or revoke modern award minimum wages and must make a national minimum wage order. The decision was based on the Fair Work Act 2009, which requires the Commission to consider a range of economic and social factors. Submissions from various parties, including employer groups and employee organisations, were considered. The Commission decided on a 2.6 per cent increase in modern award minimum wages, resulting in a national minimum wage of $622.20 per week or $16.37 per hour, effective from 1 July 2013. The decision took into account economic factors such as GDP growth, inflation, and productivity, as well as social factors like relative living standards and the needs of the low paid. The Commission rejected proposals for differential treatment between modern awards and a mechanistic approach to wage fixation, emphasising the importance of a consistent safety net of minimum wages.

Orders