Declaration of General Ruling (State Wage Case 2022)

In the matter of the Declaration of General Ruling (State Wage Case 2022), the Full Bench of the Industrial Relations Commission of Queensland was tasked with determining the appropriate increase to the state minimum wage (SMW) and award wages for the State of Queensland. The Local Government Association of Queensland (LGAQ) advocated for a three per cent increase to award wages and a three per cent increase to existing and applicable award allowances in awards which relate to work or conditions which have not changed, nor have mechanisms in the award for varying the amounts. Other unions, such as the Queensland Council of Unions (QCU), Together Queensland (TQ), and the Australian Workers' Union (AWU), sought an increase across all awards of 4.6 per cent or $40 per week, whichever is higher.

The primary legal issue before the Court was whether the Full Bench should adopt the Fair Work Commission's (FWC) decision on the national minimum wage (NMW) and apply a similar approach to the determination of the SMW, or whether there were cogent reasons for a departure from the FWC's approach. The Full Bench had to balance the need to provide relief to low-paid workers in the context of rising cost of living pressures against the need to maintain fair and reasonable wages and not have a significant adverse effect on the performance and competitiveness of the national economy.

The Full Bench found that the LGAQ had failed to outline the methodology adopted by it to support its submission for a 3 per cent increase to award wages and had not provided any specific evidence to support its contention that a 4.6 per cent increase would be unreasonable. The Full Bench was of the view that an increase of 4.6 per cent or $40 per week, whichever is the greater, should apply to the state awards and existing award allowances relating to work conditions which have remained unchanged. The Full Bench acknowledged that while regard would be had to the FWC conclusions, the function of the Full Bench was not to slavishly follow the FWC's decision but to exercise its statutory function with an independent mind, bringing into consideration the particular circumstances of Queensland.

ORDERS:
1. The wages or salaries for full-time adult employees in all state awards shall be increased by 4.6 per cent or $40 per week, whichever is the greater.
2. Monetary allowances (other than expense related allowances) in all state awards that relate to work or to conditions which have not changed, and service increments, are to be increased by 4.6 per cent.
3. The minimum wage rate per week for all full-time employees in Queensland is $850.50.
4. The above increases operate on and from 1 September 2022.