Annual Wage Review 2016–17 - [2017] FWCFB 3500

[2017] FWCFB 3500 [Note: a further Decision and correction and have been issued to this document; the changes arising have been incorporated in this version at [699] ]

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.285 - Annual wage review

Annual Wage Review 2016–17
(C2017/1)

JUSTICE ROSS, PRESIDENT
VICE PRESIDENT HATCHER
DEPUTY PRESIDENT ASBURY
COMMISSIONER HAMPTON
MR COLE
PROFESSOR RICHARDSON
MR GIBBS

MELBOURNE, 6 JUNE 2017

Contents

Paragraph
1.	Overview and the Decision	[1]
2.	The Statutory Framework	[101]
3.	The Parties’ Proposals	[187]
4.	The Economy	[212]
5.	Relative Living Standards and the Needs of the Low Paid	[360]
6.	Promoting Social Inclusion through Increased Workforce Participation	[490]
7.	Encouraging Collective Bargaining	[591]
8.	Equal Remuneration	[638]
9.	Other Matters	[679]
10.	Conclusion	[741]
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 decision	Annual Wage Review 2009–10 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
2014–15 Review decision	Annual Wage Review 2014–15 decision
2015–16 Review decision	Annual Wage Review 2015–16 decision
2016–17 Review decision	Annual Wage Review 2016–17 decision
AAWI	average annualised wage increase
ABI and NSWBC	Australian Business Industrial and NSW Business Chamber Ltd
ABS	Australian Bureau of Statistics
ACCER	Australian Catholic Council for Employment Relations
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
AHA and TAA	Australian Hotels Association and Tourism Accommodation Australia
Ai Group	Australian Industry Group
All Trades matter	All Trades Queensland Pty Limited v CFMEU and Ors
ANZSIC	Australian and New Zealand Standard Industrial Classification
APCSs	Australian Pay and Classification Scales
Apprentices decision	Modern Awards Review 2012—Apprentices, Trainees and Juniors, [2013] FWCFB 5411
ARA	Australian Retailers Association
ARTIO	Australian Road Transport Industrial Organisation
AWE	average weekly earnings
AWOTE	average weekly ordinary time earnings
AWRS	Australian Workplace Relations Study
ACCI	Australian Chamber of Commerce and Industry
Business SA	Chamber of Commerce and Industry South Australia
C2(b)	Principal Technical Officer
C4	Engineering Associate/Laboratory Technical Officer Level 1
C10	Engineering/Manufacturing Tradesperson Level 1
C14	Engineering/Manufacturing Employee Level 1
CCIQ	Chamber of Commerce and Industry Queensland
CCIWA	Chamber of Commerce and Industry Western Australia
Commission	Fair Work Commission
CPI	Consumer Price Index
DSP	Disability Support Pension
ERO	Equal Remuneration Order
EEH	Survey of Employee Earnings and Hours
GDP	gross domestic product
GFC	global financial crisis
GVA	gross value added
HES	Household Expenditure Survey
HIA	Housing Industry Association
HILDA	Household, Income and Labour Dynamics in Australia
IMF	International Monetary Fund
LCI	Living Cost Index
LNG	Liquefied natural gas
Manufacturing Award	Manufacturing and Associated Industries and Occupations Award 2010
MFP	Multifactor productivity
MGA	Master Grocers Australia
Miscellaneous Award	Miscellaneous Award 2010
MTA-SA	Motor Trade Association of South Australia
MYEFO	Mid-Year Economic and Fiscal Outlook
NAB	National Australia Bank
NAPSA	Notional Agreement Preserving State Awards
NCVER	National Centre for Vocational…

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: [2017] FWCFB 3500
Decision Date: 6 JUNE 2017

CaseChat Overview and Summary

The Fair Work Commission (FWC) conducted the Annual Wage Review 2016–17, which affects over 2.3 million employees who rely on the national minimum wage (NMW) or modern award minimum wages. The Review involved considering various economic, social, and collective bargaining factors as mandated by the Fair Work Act 2009 (Cth). Submissions from the Australian Government, state governments, and various industry groups were considered. The Panel rejected the adoption of a medium-term target for the NMW and proposals for special national minimum wages. The Review also took into account the Penalty Rates decision, which reduced penalty rates for certain employees. The Panel concluded that modest and regular wage increases do not result in disemployment effects. After considering the submissions and evidence, the Panel decided to increase the NMW by 3.3%, resulting in a weekly rate of $694.90 or $18.29 per hour. Modern award minimum wages were also increased by 3.3%. The increase aims to improve the relative living standards of low-paid workers without adversely affecting employment levels.

Orders