Annual Wage Review 2015–16

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[2016] FWCFB 3500
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.285 - Annual wage review

Annual Wage Review 2015–16
(C2016/1)

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

MELBOURNE, 31 MAY 2016

Contents

Paragraph

1.

Overview and the Decision

[1]

2.

The Statutory Framework

[110]

3.

The Parties’ Proposals

[153]

4.

The Economy

[187]

5.

Relative Living Standards and the Needs of the Low Paid

[350]

6.

Promoting Social Inclusion through Increased Workforce Participation

[464]

7.

Encouraging Collective Bargaining

[519]

8.

Equal Remuneration

[542]

9.

Other Matters

[580]

10.

Conclusion

[660]

Appendix 1—Research for Annual Wage Reviews

Appendix 2—Proposed Minimum Wages Adjustments

Appendix 3—Index of Material

Appendix 4—List of Appearances

Abbreviations

2009–10 Review

Annual Wage Review 2009–10

2010–11 Review

Annual Wage Review 2010–11

2012 ERO

Social, Community and Disability Services Industry Equal Remuneration Order 2012

2012–13 Review

Annual Wage Review 2012–13

2013–14 Review

Annual Wage Review 2013–14

2014–15 Review

Annual Wage Review 2014–15

2016–17 Review

Annual Wage Review 2016–17

AAWI

average annualised wage increases

ABI

Australian Business Industrial and the NSW Business Chamber Ltd

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 (Cth)

ACTU

Australian Council of Trade Unions

AFEI

Australian Federation of Employers and Industries

AFPC

Australian Fair Pay Commission

AHA & TAA

Australian Hotels Association and Tourism Accommodation Australia

Ai Group

The Australian Industry Group

ANZ

Australia and New Zealand Banking Group

APCS

Australian Pay and Classification Scale

ARA

Australian Retailers Association

Award-reliant industries

The five industries with the highest proportion of employees within the industry who are reliant on award rates of pay according to ABS, Employee Earnings and Hours, Australia, May 2014, Catalogue No. 6306.0:Accommodation and food services, Administrative and support services,Health care and social assistance, Other services and Retail trade

AWE

average weekly earnings

AWOTE

average weekly ordinary time earnings

AWR

Annual Wage Review

AWRS

Australian Workplace Relations Study

Australian PCI

Australian Industry Group/Housing Industry Association Australian Performance of Construction Index

Australian PMI

Australian Industry Group Australian Performance of Manufacturing Index

Australian PSI

Australian Industry Group Australian Performance of Services Index

Business Equipment Award

Business Equipment Award 2010

C1(b)

Professional Engineer/Professional Scientist, Metal, Engineering and Associated Industries Award 1998

C2(b)

Principal Technical Officer, Manufacturing and Associated Industries and Occupations Award 2010

C4

Engineering Associate/ Laboratory Technical Officer—Level 1, Manufacturing and Associated Industries and Occupations Award 2010

C5

Advanced Engineering Tradesperson—Level II Engineering/Laboratory Technician—Level V, Manufacturing and Associated Industries and Occupations Award 2010

C7

Engineering/ Manufacturing Tradesperson—Special Class Level II, Manufacturing and Associated Industries and Occupations Award 2010

Engineering/Laboratory Technician—Level III, Manufacturing and Associated Industries and Occupations Award 2010

C8

Engineering/ Manufacturing Tradesperson—Special Class Level I, Manufacturing and Associated Industries and Occupations Award 2010

C10

Engineering/Manufacturing Tradesperson—Level 1, Manufacturing and Associated Industries and Occupations Award 2010

C14

Engineering/Manufacturing Employee—Level 1, Manufacturing and Associated Industries and Occupations Award 2010

CCIQ

Chamber of Commerce…

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Details
Case
[2016] FWCFB 3500
Decision Date

CaseChat Overview and Summary

The Fair Work Commission has determined that the national minimum wage (NMW) should increase by 2.4 per cent to $672.70 per week, effective 1 July 2016. The decision followed a review of the NMW and minimum wages in modern awards, as mandated by the Fair Work Act 2009. The Expert Panel considered various economic and social factors in making its determination. Economic indicators showed continued growth in real gross domestic product and improvements in the labour market, although some sectors faced challenges. Wages growth remained low, contributing to the continued relative decline in living standards for low-paid workers. The Panel concluded that a modest increase in the NMW and modern award minimum wages would improve the living standards of low-paid workers without significantly impacting employment levels. The decision also takes into account the need to encourage collective bargaining and the principle of equal remuneration for work of equal or comparable value. The Panel rejected submissions advocating for an award-by-award review of minimum wages and deferred increases for industries and regions affected by natural disasters. The decision sets the stage for a review of transitional instruments and arrangements for employees with disabilities in the next annual wage review.

Orders

Orders of the court

Full text does not contain this section.

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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