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Annual Wage Review 2015–16

Annual Wage Review 2015–16

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Case Copied 31 May 2016 78 min read

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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…

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: [2016] FWCFB 3500
Decision Date: 31 May 2016

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