| [2022] FWCFB 3500 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.285—Annual wage review
Annual Wage Review 2021–22
(C2022/1)
| JUSTICE ROSS, PRESIDENT | MELBOURNE, 15 JUNE 2022 |
Contents
| Paragraph | ||
| 1. | The Statutory Framework | [1] |
| 2. | Considerations | [23] |
| 2.1 Economic considerations | [24] | |
| 2.2 Social and other considerations | [66] | |
| 3. | The Decision – NMW and Modern Award Minimum Wages | [88] |
| 4. | Timing | [198] |
| 5. | Transitional instruments | [263] |
| 6. | Copied State awards | [278] |
| 7. | Conclusion | [448] |
| Appendix 1 – Index of material | Page 102 | |
| Appendix 2 – Proposed Minimum Wages Adjustments | Page 105 | |
| Appendix 3 – Poverty lines | Page 111 | |
| Appendix 4 – Research for Annual Wage Reviews | Page 112 | |
| Appendix 5 – Copied State awards | Page 115 |
Abbreviations
| 2009–10 Review | Annual Wage Review 2009–10 |
| 2012–13 Review | Annual Wage Review 2012–13 |
| 2016–17 Review | Annual Wage Review 2016–17 |
| 2017–18 Review | Annual Wage Review 2017–18 |
| 2018–19 Review | Annual Wage Review 2018–19 |
| 2018 Bus Engineering and Maintenance Award | State Transit Authority Bus Engineering and Maintenance Enterprise (State) Award 2018 |
| 2018 Bus Operations Award | State Transit Authority Bus Operations Enterprise (State) Award 2018 |
| 2018 Senior and Salaried Officers Award | State Transit Authority Senior and Salaried Officers’ Enterprise (State) Award 2018 |
| 2019–20 Review | Annual Wage Review 2019–20 |
| 2020–21 Review | Annual Wage Review 2020–21 |
| 2021–22 Review | Annual Wage Review 2021–22 |
| AAWI | average annualised wage increase |
| ABI | Australian Business Industrial and Business NSW |
| 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 |
| Ai Group | Australian Industry Group |
| AMWU | Australian Manufacturing Workers’ Union |
| ARTBIU | Australian Rail Tram and Bus Industry Union |
| ARA | Australian Retailers Association |
| ASU | Australian Services Union |
| AWOTE | average weekly ordinary time earnings |
| C4 | Engineering Associate/Laboratory Technical Officer Level 1 |
| C10 | Engineering/Manufacturing Tradesperson Level 1 |
| C14 | Engineering/Manufacturing Employee Level 1 |
| Commission | Fair Work Commission |
| CPI | Consumer Price Index |
| GDP | gross domestic product |
| GST | Goods and Services Tax |
| GVA | gross value added |
| LCI | Living Cost Index |
| LITO | low income tax offset |
| LMITO | low and middle income tax offset |
| LPC | Low Pay Commission |
| Manufacturing Award 2020 | Manufacturing and Associated Industries and Occupations Award 2020 |
| Miscellaneous Award | Miscellaneous Award 2020 |
| MGA | Master Grocers Australia Limited |
| NLW | National Living Wage |
| NMW | national minimum wage |
| NRA | National Retail Association |
| Panel | Expert Panel for annual wage reviews |
| RBA | Reserve Bank of Australia |
| R&CA | Restaurant and Catering Industry Association |
| Review | Annual Wage Review |
| SAWIA | South Australian Wine Industry Association |
| SDA | Shop Distributive and Allied Employees’ Association |
| SG | Superannuation Guarantee |
| Statistical report | Statistical Report—Annual Wage Review 2021–22 |
| SWS | Supported Wage System |
| WAD | Workplace Agreements Database |
| WPI | Wage Price Index |
The Annual Wage Review Decision
The Statutory Framework
The Fair Work Act 2009 (Cth) (Act) requires that each financial year the Commission, constituted by an Expert Panel for annual wage reviews (Panel), conduct and complete a review of the national minimum wage (NMW), modern award minimum wages…
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- Case
- [2022] FWCFB 3500
- Decision Date
CaseChat Overview and Summary
The legal issues before the court were the determination of the appropriate increase to the NMW and modern award minimum wages, as well as the consideration of various factors, including the interests of employees, employers, and the broader economy. The court was required to balance the need to provide fair and reasonable wage increases with the need to ensure the sustainability of businesses and the economy.
In determining the appropriate increase, the panel considered various factors, including the economic context, the impact on low-paid workers, and the views of the various stakeholders. The panel ultimately determined that the NMW should be increased by 5.4 per cent, with a range of increases for different modern awards depending on the industry and occupation. The panel also considered the timing of the increase, which was to be implemented in stages over a period of two years.
The court made orders for an increase to the NMW and modern award minimum wages, with the increases to be implemented in stages over a period of two years. The court also noted that the increase should be accompanied by measures to support low-paid workers and businesses, including assistance with the transition to the new wage rates and support for small businesses.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
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