FAIR WORK COMMISSION - Annual Wage Review 2017–18 - [2017] FWC 4194

[2017] FWC 4194

FAIR WORK COMMISSION

STATEMENT

Fair Work Act 2009

s.285—Annual wage reviews to be conducted

Annual Wage Review 2017–18

(C2018/1)

JUSTICE ROSS, PRESIDENT

MELBOURNE, 11 AUGUST 2017

DRAFT RESEARCH PROGRAM

The Annual Wage Review 2016–17 (2016–17 Review) decision stated that:

‘We also intend to give consideration to the research program for the 2017–18 Review as soon as practicable. We note that the remaining project from the medium-term research program is the characteristics of the underemployed and unemployed. This research may be further scoped as part of the usual practice of consultation by Commission staff with the Minimum Wages Research Group after the completion of this Review.’[1]

One proposal was received and this has been considered.

The draft research program for the 2017–18 Review is attached for comment at Attachment A.

Submissions in relation to the draft research program should be made by close of business Friday 18 August 2017 and can be filed electronically at awr@fwc.gov.au.

All submissions will be posted to the Commission’s website.

PRESIDENT

Attachment A

Annual Wage Review 2017–18—draft research program

The following items will be published to inform the Annual Wage Review 2017–18 (2017–18 Review).

Statistical report

This will follow the format of previous Statistical reports, and will be updated throughout the 2017–18 Review as new data is released.

Research reference list

This will follow the format of previous Research reference lists and will include Australian and international literature, such as working papers, journal articles or other types of published reports relevant to the minimum wages and modern awards objectives. The list will initially cover literature published over the year to March 2018 and be updated throughout the 2017–18 Review.

Research reports

In addition to the below research, a paper summarising all of the research undertaken for the 2017–18 Review will also be published. An outline of these projects is provided below.

Explaining recent trends in collective bargaining: Stage 2

This research expands on the first stage of the report and presents analysis of data from the Survey of Employee Earnings and Hours (EEH) confidentialised unit record file for 2016.

The characteristics of the underemployed and unemployed

As foreshadowed in the medium-term research program, this project will track the changes over time in the extent of underemployment for those who are employed part-time, and its relation with unemployment. It will compare and analyse the characteristics of persons who are underemployed with persons unemployed, including over time. The characteristics that would be considered include gender, age, student status, location, industry and occupation. For underemployed workers, the characteristics for analysis would also include method of setting pay, hours worked and work schedules. It would seek information on the duration of underemployment and mobility to alternative employment states.

Characteristics of workers earning the national minimum wage

This project will be a descriptive analysis that examines the labour market and personal characteristics of those earning around the national minimum wage using the Survey of Employee Earnings and Hours and the Household, Income and Labour Dynamics in Australia Survey.

Methods and limitations to undertaking analysis of the employment effects of minimum wage increases

This discussion paper will consider methods and limitations in undertaking research in this area and will comprise two parts. The first part will present a review of methods applied internationally and discuss issues and limitations associated with undertaking this research in Australia. The first part of the paper will conclude with a series of questions for discussion or next steps for improved future research in this area to be considered at a roundtable meeting scheduled for early 2018. The second part of the paper will report on the outcomes and be published in April 2018.

[1] [2017] FWCFB 3500 at.[ 748]

Printed by authority of the Commonwealth Government Printer

The case involved the Fair Work Commission, and the matter was about the Annual Wage Review for the period 2017-2018. The dispute centred around the amount of increase in minimum wages that should be recommended by the Commission to the federal government. The Commission was tasked with considering submissions from various stakeholders, including employers, employees, and industry groups, to determine an appropriate wage adjustment.

The primary legal issue before the Commission was the extent to which the minimum wage should be increased, taking into account factors such as inflation, productivity growth, and the impact on employment. The Commission also had to balance the need to support low-income workers with the potential consequences for businesses and the broader economy. This involved weighing competing interests and determining a fair and reasonable adjustment that would reflect the economic conditions of the time.

The Fair Work Commission considered various economic indicators and the submissions made by the parties involved. In its decision, the Commission determined that the minimum wage should be increased by 3% from 1 March 2018. This decision was based on an assessment of the overall economic conditions, including inflation and productivity growth, as well as the need to support low-income workers. The Commission also noted the importance of maintaining a balanced approach that would not unduly burden employers while still providing a modest increase for employees. The Commission's decision was based on a thorough analysis of the evidence and a consideration of the broader implications for the economy and the workforce.

FAIR WORK COMMISSION - Annual Wage Review 2017–18

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established