Annual Wage Review 2014–15 - [2015] FWCFB 3500

[2015] FWCFB 3500

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.285—Annual wage review

Annual Wage Review 2014–15
(C2015/1)

JUSTICE ROSS, PRESIDENT
SENIOR DEPUTY PRESIDENT WATSON
SENIOR DEPUTY PRESIDENT HARRISON
COMMISSIONER HAMPTON
MR COLE
PROFESSOR RICHARDSON
MR GIBBS

MELBOURNE, 2 JUNE 2015

Contents

Paragraph
1.	The Decision	[1]
2.	The Statutory Framework	[80]
3.	The Parties’ Proposals	[146]
4.	The Economy	[175]
5.	Relative Living Standards and the Needs of the Low Paid	[309]
6.	Promoting Social Inclusion through Increased Workforce Participation	[418]
7.	Encouraging Collective Bargaining	[455]
8.	Equal Remuneration	[474]
9.	Exceptional/Special Circumstances	[494]
10.	Other Matters	[526]
11.	Conclusion	[577]
Appendix 1—Proposed Minimum Wages Adjustments	Appendix 1

Abbreviations

2010–11 Review decision	Annual Wage Review 2010–11 decision
2011–12 Review decision	Annual Wage Review 2011–12 decision
2012–13 Review decision	Annual Wage Review 2012–13 decision
2013-14 Review Decision	Annual Wage Review 2013–14 decision
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
Ai Group	Australian Industry Group
ANRA	Australian National Retailers Association
APCSs	Australian Pay and Classification Scales
ARA	Australian Retailers Association
AWE	average weekly earnings
AWOTE	average weekly ordinary time earnings
AWRS	Australian Workplace Relations Study
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
EEBTUM	Employee Earnings, Benefits and Trade Union Membership
EEH	Employee Earnings and Hours
GFC	global financial crisis
GDP	gross domestic product
GVA	Gross Value Added
HES	Household Expenditure Survey
HIA	Housing Industry Association
HILDA	Household Income and Labour Dynamics in Australia
IMF	International Monetary Fund
LRA	Liquor Retailers Australia
MGA	Master Grocers Australia
NES	National Employment Standards
NFF	National Farmers’ Federation
NMW	national minimum wage
NTWS	National Training Wage Schedule
OECD	Organisation for Economic Co-operation and Development
Panel	Expert Panel for annual wage reviews
R&CA	Restaurant and Catering Australia
RBA	Reserve Bank of Australia
Review	Annual Wage Review 2013–14
RNNDI	real net national disposable income
SMEs	small and medium enterprises
Statistical Report	Statistical Report—Annual Wage Review 2014–15
SWSS	Supported Wage System Schedule
Transitional Act	Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
VACC	Victorian Automobile Chamber of Commerce
WPI	Wage Price Index
WR Act	Workplace Relations Act 1996 (Cth)

1. The Decision

Introduction

[1] The Fair Work Act 2009 (the Act) requires the Expert Panel (the Panel) to conduct and complete a review of the national minimum wage (NMW) and of minimum wages in modern awards in each financial year. The Panel must make a national minimum wage order and may set, vary or revoke modern award minimum wages. This decision deals with the 2014–15 Annual Wage Review (the Review) and directly affects over 1.86 million employees in Australia who are award reliant.

[2] The Act sets out some important procedural fairness…

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: [2015] FWCFB 3500
Decision Date: 2 JUNE 2015

CaseChat Overview and Summary

This decision concerns the 2014-15 Annual Wage Review, which the Fair Work Commission is required to conduct under the Fair Work Act 2009. The Panel must ensure that all persons and bodies are given a reasonable opportunity to participate in the Review and make submissions. The Panel also considered the submissions of the Australian Government and State governments, the Federal Opposition, collective bodies representing employers and employees and other organisations. The Panel assessed the submissions and submissions in light of the statutory criteria applicable to each function. The Panel concluded that the most significant change in economic outcomes since the last Review was the reduction in inflation and aggregate wages growth. The lower inflation and aggregate wages growth favoured a more modest increase in minimum wages. The Panel also concluded that the relative living standards of NMW and award-reliant employees had improved a little over the past year or two and that the indicators of unmet need among the low paid, while substantially higher than for the higher paid, had if anything also improved. The Panel determined an increase of 2.5 per cent in the national minimum wage and modern award minimum wages, which will come into operation on 1 July 2015.

Orders