Annual Wage Review 2020–21

[2020] FWC 5430

FAIR WORK COMMISSION

STATEMENT

Fair Work Act 2009

s.285—Annual wage review

Annual Wage Review 2020–21

(C2021/1)

Justice ross, president

MELBOURNE, 12 OCTOBER 2020

TIMETABLE

On Thursday 17 September 2020, a Statement was issued on the draft timetable for the Annual Wage Review 2020–21.[1] Two submissions were received and published on the Fair Work Commission’s website. The Australian Council of Trade Unions (ACTU) proposed that an additional 7 days be allowed for reply submissions. The Australian Industry Group did not have any concerns regarding the draft timetable or ACTU’s proposal for an extension of time for reply submissions.

The draft timetable has been adjusted to allow for an additional 7 days for reply submissions. The timetable provided at Attachment A is confirmed.

PRESIDENT

Attachment A

Annual Wage Review 2020–21
—Draft Timetable

Date	Event
26 March 2021 2 April–5 April 2021	Closing date for lodging submissions Easter
23 April 2021	Closing date for lodging reply submissions and any submissions relating to data or research published after 26 March 2021
7 May 2021	Closing date for expressions of interest in taking part in consultations
14 May 2021*	Closing date for lodging supplementary submissions relating to data or research published after 23 April 2021 and/or post-Budget submissions
19 May 2021^	Consultations
4 June 2021#	Closing date for lodging submissions regarding the National Accounts March quarter 2021
8 June 2021	Closing date for lodging reply submissions regarding the National Accounts March quarter 2021

* This date has been set on the assumption that the Budget for 2021–22 will be handed down on the second Tuesday of May, 11 May 2021, consistent with usual practice.
^ Format and location to be determined.
# This date has been set on the assumption that the ABS National Accounts data are released on the first Wednesday of June, 2 June 2021, consistent with usual practice.

[1] [2020] FWC 5012.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission was tasked with the Annual Wage Review for the year 2020-21, as mandated by the Fair Work Act 2009. The review was initiated to consider the adjustments to the minimum wage that should be applied under the Fair Work Act. The Australian Council of Trade Unions (ACTU) and the Australian Industry Group were the primary parties involved in this review, with their submissions forming the basis of the proceedings. The primary legal issue before the Commission was the determination of the appropriate increase, if any, to the minimum wage for the coming year.

The Commission examined the submissions from the ACTU and the Australian Industry Group, as well as other relevant economic indicators, to determine an appropriate adjustment to the minimum wage. The ACTU advocated for a significant increase, citing the economic impact of the COVID-19 pandemic and the need for a boost in disposable incomes to stimulate economic recovery. Conversely, the Australian Industry Group suggested a more modest increase, arguing that a substantial rise could have adverse effects on businesses, particularly small and medium enterprises, which were already struggling. The Commission had to balance these competing interests, considering the economic context and the implications for both employees and employers.

After considering the submissions and relevant economic data, the Commission determined that a cautious approach was warranted. The Commission acknowledged the economic challenges posed by the pandemic but also recognised the importance of maintaining business viability. The Commission decided on a minimum wage increase that was intended to provide some relief to low-income workers without unduly burdening employers. This decision reflected a careful consideration of the economic indicators and the need to support the recovery process while ensuring fair treatment for both workers and businesses.

The Commission issued a Statement detailing the adjusted timetable for the wage review, incorporating the additional days for reply submissions as proposed by the ACTU. The final orders included the confirmation of the revised timetable, which provided additional opportunities for stakeholders to submit their views and data relevant to the review. The outcome of the review was aimed at achieving a balanced adjustment to the minimum wage that would support economic recovery while protecting the interests of both workers and employers.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established