Annual Wage Review 2017–18

This case involves the Annual Wage Review 2017-18, where the Fair Work Commission conducted a review of the national minimum wage (NMW) and modern award minimum wages under the Fair Work Act 2009. The panel was required to make a NMW order and consider variations to modern award minimum wages. The review affects a significant proportion of employees, including those paid at or near the NMW and modern award minimum wages, and those whose pay is set by a collective agreement linked to the Review. The primary legal issue before the court was whether the Panel appropriately considered the economic and labour market conditions, including macroeconomic data, when determining the minimum wage rates. The Panel was required to balance the considerations under the minimum wages objective and the modern awards objective, as outlined in the Fair Work Act.

The court found that the Panel had appropriately considered the economic and labour market conditions, including macroeconomic data, in making its determinations. The court rejected the argument that macroeconomic data were not useful for a Review, as the Panel needed to consider developments in all industries and the performance and competitiveness of the national economy. The court noted that while the degree of award reliance varied between industries, all industries contained a proportion of award-reliant employees, and thus developments in all industries were relevant. The court also highlighted that the minimum wages objective required the Panel to consider the performance and competitiveness of the national economy, which necessitated attention to macroeconomic data.

The court further determined that the Panel had appropriately considered developments in the most award-reliant industries and other relevant indicators in making its decisions. The court found that the Panel's approach to considering economic and labour market conditions was consistent with the statutory requirements and objectives outlined in the Fair Work Act. The court concluded that the Panel had adequately addressed the economic and labour market considerations when setting the NMW and varying modern award minimum wages.

The final orders of the court were that the Panel's decisions on the NMW and modern award minimum wages were upheld, as the Panel had appropriately considered the economic and labour market conditions and other relevant indicators in line with the statutory requirements and objectives. The court's decision affirmed the Panel's approach to the Annual Wage Review 2017-18 and the considerations it took into account when setting the minimum wage rates.