Declaration of General Ruling (State Wage Case 2024)

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QUEENSLAND INDUSTRIAL RELATIONS COMMISSION

CITATION:

Declaration of General Ruling (State Wage Case 2024) [2024] QIRC 244
PARTIES:

Queensland Council of Unions

and

Together Queensland, Industrial Union of Employees
(Applicants)

v

State Of Queensland (Office of Industrial Relations)

and

Local Government Association of Queensland Ltd

(Respondents)
FILE NOS:

B/2024/50; B/2024/51
PROCEEDING:

Application for Declaration of General Ruling
DELIVERED ON:

9 October 2024
HEARING DATE:

3 September 2024

MEMBERS:

Hartigan DP, Power IC, Gazenbeek IC
ORDERS:

1.       The wages or salaries for full-time adult employees in all state awards shall be increased by 3.75%.

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 3.75%.

3.       The minimum wage rate per week for all full-time employees in Queensland is $915.90.

4.       The above increases operate on and from 1 September 2024.

LEGISLATION:

Industrial Relations Act 2016, ss 3, 4, 141, 142, 143, 458, 459, 459A, 460
CASES:

Annual Wage Review Decision 2023-24 [2024] FWCFB 3500 Declaration of General Ruling (State Wage Case) 2014 [2014] QIRC 129
Declaration of General Ruling (State Wage Case 2020) [2020] QIRC 131
Declaration of General Ruling (State Wage Case 2022) [2022] QIRC 340
Declaration of General Ruling (State Wage Case 2023) [2023] QIRC 263
Declaration of General Ruling (State Wage Case 2023) (No 3) [2024] QIRC 111
APPEARANCES:

Mr. N Tosh for the Queensland Council of Unions
Mr. M Thomas for Together Queensland, Industrial Union of Employees
Mr. S Donovan for the State of Queensland
Ms. E Ackland for the Local Government Association of Queensland Ltd

Reasons for Decision

State Wage Case 2024 – Introduction

  1. The Queensland Council of Unions (‘QCU’)[1] and Together Queensland, Industrial Union of Employees (‘Together’),[2] have each applied to the Queensland Industrial Relations Commission (‘the Commission’) seeking the following:

    (a)     a general ruling[3] to amend all state awards to increase wages by 3.75%;

    (b)     a general ruling to amend all state awards to increase the existing allowances which relate to work or conditions, which have not changed by 3.75%;

    (c)     an increase to the Queensland Minimum Wage (‘QMW’) as it applies to all employees to $915.90 per week or $24.10 per hour; and

    (d)     a determination that the operative date for these amendments be 1 September 2024.

    [1]  Application of the Queensland Council of Unions, filed 4 June 2024.

    [2]  Application of Together Queensland, Industrial Union of Employees, filed 4 June 2024.

    [3] Industrial Relations Act 2016 (Qld) s 458 (‘IR Act’).

  2. The applications were heard together. The State of Queensland (‘the State’) and the Local Government Association of Queensland (‘LGAQ’) are respondents to both applications.

  3. The State’s response to the applications sets out that it is supportive of the following:[4]

    (a)a fair and reasonable increase to all State award rates of pay;

    (b)a fair and reasonable increase to modern award allowances which relate to work or conditions which have not changed in service increments;

    (c)a fair and reasonable increase in the…

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Details
Case
[2024] QIRC 244
Decision Date

CaseChat Overview and Summary

The matter before the Commission involved the determination of a new minimum wage rate in Queensland, as part of a state wage case. The parties included the State of Queensland, the Local Government Association of Queensland, and the Queensland Council of Unions. The dispute centred on the appropriate percentage increase to the Queensland Minimum Wage (QMW) for full-time employees, with both the State and the Local Government Association of Queensland advocating for an increase of no more than 3.75%. The Commission was required to weigh various economic factors, such as relative wage growth and inflation, to decide on a fair and reasonable wage increase.

The primary legal issues before the Commission were to determine the appropriate percentage increase for the QMW, ensuring it reflects fair and reasonable wages that allow employees to participate in society and to prevent those not benefiting from bargaining from being left behind. The Commission had to consider the legislative framework, including the functions outlined in sections 141 and 142 of the Industrial Relations Act 1993 (Qld). It also needed to assess the comparative economic conditions at both national and state levels and how these conditions impact the living standards of low-paid employees. The Commission was also mindful of the Fair Work Commission’s 2024 Annual Wage Review decision and its principle that minimum wages should maintain their real value in line with the trend rate of national productivity growth.

The Commission determined that the QMW for full-time employees in Queensland should be increased by 3.75%, setting the new rate at $915.90 per week. This decision was made by considering the economic factors and the need to ensure fair and reasonable wages. The Commission acknowledged that while the Fair Work Commission’s principles were important, they were subject to the immediate circumstances of the annual wage review. The Commission also highlighted the importance of maintaining a safety net for fair minimum wages, particularly in an environment where employees face rising cost of living expenses. The decision was influenced by the 2024 Annual Wage Review and its acknowledgment of the desirability of maintaining real wage growth in line with national productivity growth, despite the challenges of adhering to this principle in the current economic context.

The orders issued by the Commission included a 3.75% increase in wages for full-time adult employees in all state awards, a corresponding increase in monetary allowances and service increments, and the setting of the new minimum wage rate at $915.90 per week, effective from 1 September 2024. The Commission also issued a declaration of General Ruling to give effect to these orders, ensuring the changes are implemented in accordance with the decision.

Orders

Orders of the court

1. The wages or salaries for full-time adult employees in all state awards shall be increased by 3.75%.

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 3.75%.

3. The minimum wage rate per week for all full-time employees in Queensland is $915.90.

4. The above increases operate on and from 1 September 2024.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Accordingly, whilst the FWC determination is a significant factor to be considered, it is not the only factor relevant to the Commission’s determination. At the first mention of this matter, the Commission referred to the 2023 SWC decision and requested that the parties consider the nature and substance of the evidence to be submitted having regard to the decision of the 2023 SWC.[12][12] Transcript of Proceedings (26 July 2024) 3, 1-14. The evidence At the hearing, the evidence relied on by the parties was limited to an affidavit of Ms Jacqueline King, General Secretary of the QCU, and an affidavit of Ms Katrina Copland, acting Director of the Industrial Relations Policy and Legislation Unit within the Office of Industrial Relations (‘OIR’) on behalf of the State. Neither Together nor the LGAQ tendered any affidavit evidence, although Together sought to rely on the affidavit of Ms King. Ms King’s affidavit indicates that she caused two “comparative analyses” to be undertaken. Ms King, after referring to each of the analyses conducted, then expresses an opinion with respect to the conclusions that are available to be drawn from the analyses. The first “analysis” purports to be an analysis of the national economic conditions and the current economic conditions in Queensland. In fact, the first “analysis” takes the form of a table and sets out comparative data with respect to certain federal and state economic factors. There is no analysis of the federal and state economic factors undertaken, other than that subsequently expressed in the opinion of Ms King in her affidavit. Ms King deposes to the first analysis as relying on the following evidence:[13] (a)AWR decision; (b)Commonwealth Government, Federal Budget Strategy and Outlook Paper 2024-25; (c)Queensland Government, Queensland State Budget Strategy and Outlook Paper 2024-25; (d)Reserve Bank of Australia, Statement on Monetary Policy (May 2024); (e)National Bank of Australia, Quarterly Business Survey (Q1 2024); (f)Australian Bureau of Statistics (ABS) data for i) Consumer Price Index, Australia; and ii) Labour Force, Australia; and iii) Wage Price Index, Australia; and iv) Counts of Australian Businesses, including Entries and Exits. [13] Affidavit of Ms King, filed 7 August 2024, [7]. However, the documents referred to “as evidence” were not attached to the affidavit nor was there any attempt at the outset of the hearing for those documents to be tendered into evidence. Consequently, the documents (and the information contained therein), that the parties purportedly relied on in support of the applications, were not put into evidence. In addition to the absence of those documents, the “analysis” that was conducted did not identify:(a)the author of the analysis;(b)the author’s relevant experience, qualifications or expertise to enable them to conduct the analysis; (c)whether the author understood the analysis was being conducted for the purpose of assisting the full bench of the Commission for the State Wage Case 2024; and(d)the methodology or process that was adopted in conducting the analysis.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

The two applications filed in this matter, seek an increase of 3.75%. The State and the LGAQ submit that an increase of not more than 3.75% to the QMW is fair and just.Consideration Consistent with the legislative framework including the functions required to be undertaken by ss 141 and 142 of the IR Act, the Commission is mindful of its overarching responsibility to ensure, inter alia, that employees are covered by fair and reasonable wages that allow employees to participate in society and to ensure that those who do not benefit from bargaining are not left behind. In determining this year's state wage case, the Commission has also taken into account data with respect to the relative wage growth and the cost of living expenses of those living in the state of Queensland. These are factors that arise at both a national and state level. The 2024 AWR referred to the principle that “… in the medium to long term it is desirable that modern award minimum wages maintain their real value and increase in line with the trend rate of national productivity growth”. [29] However, the FWC noted that the principle operated subject to the implicit qualification that in the immediate circumstances of particular annual wage reviews it may not be possible to adhere to that objective.[29] AWR (n 23) 154. Such a principle accords generally with this Commission’s functions including those pursuant to ss 141, 142 and 143(1)(i) of the IR Act. It remains the case that declining real wage growth is a significant problem in an environment where employees, particularly low-paid employees, are faced with rising cost of living expenses. It is noted that this decision will apply within the state and local government sectors and parents and citizens’ associations. The employees within the Queensland industrial relations jurisdiction are covered by either an award and/or by a certified agreement. In this environment the QMW operates to maintain a safety net of fair minimum wages. We consider that regard should be had to factors that impact the relative living standards of low-paid employees and to whom the QMW may apply. Such factors include, inter alia, relative wage growth and inflation. These economic factors support an increase to the QMW. Each of the parties accepted that employees within the Queensland jurisdiction should be paid a wage that is fair and reasonable. Accordingly, the Commission has determined that the QMW for a full-time employee in Queensland be increased by 3.75% to $915.90.[30] [30] Rounded to the nearest ten cents. Having regard to, and appropriately weighing the matters we are required to take into account pursuant to ss 141, 142 and 143 of the IR Act, the purpose of the IR Act and how that purpose is to be achieved as set out in ss 3 and 4 of the IR Act, and the rate of the QMW, we have determined that the minimum award wage and allowances in Queensland modern awards shall be increased by 3.75%. The Commission will issue a declaration of General Ruling giving effect to the orders made which will be issued concurrently with this decision.