Annual Wage Review 2015–16 - [2015] FWC 7969

[2015] FWC 7969

FAIR WORK COMMISSION

STATEMENT

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

Annual Wage Review 2015–16
(C2016/1)

JUSTICE ROSS, PRESIDENT

MELBOURNE, 19 NOVEMBER 2015

RESEARCH PROGRAM

[1] On 30 September 2014, the Expert Panel (the Panel) released a Statement on the medium-term research program (program) which outlined research projects to be undertaken to inform future annual wage reviews.

[2] Pursuant to this program, a number of research projects will be completed to inform the Annual Wage Review 2015–16. The remaining research in the program may be considered to inform future annual wage reviews.

[3] Accordingly, the Panel confirms the research program as outlined in Attachment A to this Statement.

[4] Further consultation in relation to the research program, including the contents of the Statistical Report, will be undertaken through the Minimum Wages Research Group.

PRESIDENT

ATTACHMENT A
ANNUAL WAGE REVIEW 2015–16—RESEARCH PROGRAM

Background

In a Statement on 30 September 2014, the Expert Panel (the Panel) released the medium-term research program. A number of the projects listed in the program will be completed to inform the Annual Wage Review 2015–16.

Statistical Report

This will follow the format of previous Statistical Reports, with the inclusion of some relevant data from the Fair Work Commission’s (Commission) Award Reliance Survey and Australian Workplace Relations Study (AWRS). For the Annual Wage Review 2015–16, the Statistical Report will include data on firms that employ workers on both higher and lower award classifications, as well as information on award-reliant employees and their household type. This was stated in the Annual Wage Review 2014–15 Decision:

“We intend to publish the AWRS information about whether award-reliant employees are the sole, main or secondary income earner in their household by reference to the various household types, including couple households with children under 15, in the statistical report for the 2015–16 Review. This will provide the parties with an opportunity to put submissions about the information and to bring any alternative evidence on the issue.” 1

Research reference list

The Research Reference List, undertaken by staff of the Commission, will be published at the same time as the Statistical Report and will list Australian and international literature, such as working papers, journal articles or other types of published reports, relevant to the minimum wages and modern awards objectives. The report will only encompass relevant literature published in the year to March 2016.

Research reports

A number of research reports are currently underway to inform the Annual Wage Review 2015–16. These include research foreshadowed in the medium-term research program as well as research undertaken by the Commission’s Pay Equity Unit.

An outline of these projects is provided below.

An international comparison of minimum wages and labour market outcomes

This research will provide a quantitative investigation that compares the labour market outcomes of countries similar to Australia with relatively high and low minimum wages. This may be undertaken by comparing particular employment indicators, including for those of low-paid workers. These indicators would include unemployment and underemployment rates, employment…

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] FWC 7969
Decision Date: 19 NOVEMBER 2015

CaseChat Overview and Summary

The Fair Work Commission, presided over by Justice Ross, was tasked with reviewing the annual wage review for the period 2015–16. The Expert Panel released a medium-term research program on 30 September 2014, which outlined various research projects to be undertaken to inform the annual wage reviews. The review considered several legal issues, including the proper scope and methodology for conducting the annual wage review, the appropriate balance between economic, social, and employment considerations, and the impact of minimum wage adjustments on businesses, employees, and the broader economy. The Commission also had to consider the research program as outlined in the attachment to the Statement.

The Commission's reasoning focused on the importance of evidence-based decision-making in the annual wage review process. The Commission emphasised the need for a comprehensive and transparent approach to gathering and analysing data, including statistical reports, research reference lists, and various research projects. The Commission also considered the potential impact of minimum wage adjustments on different stakeholders, including low-paid workers, businesses, and the overall economy. Ultimately, the Commission confirmed the research program as outlined in the attachment to the Statement, which would inform the Annual Wage Review 2015–16.

The Fair Work Commission confirmed the research program as outlined in the attachment to the Statement, which would inform the Annual Wage Review 2015–16. This included a Statistical Report, a Research Reference List, and various research projects such as an international comparison of minimum wages and labour market outcomes, pay equity research, and studies on the earnings and characteristics of employees by gender and industrial arrangements. The Commission also outlined future research projects that would inform future annual wage reviews, such as an analysis of the youth labour market and the characteristics of the underemployed and unemployed.

No final orders were made in this decision. The Fair Work Commission confirmed the research program as outlined in the attachment to the Statement, which would inform the Annual Wage Review 2015–16. The Commission emphasised the importance of evidence-based decision-making in the annual wage review process and considered the potential impact of minimum wage adjustments on different stakeholders. The research program aimed to provide comprehensive and transparent data to support the Commission's decision-making process.

Orders