National Wage Case March 1977

Case [1977] FCA 9


IN THE AUSTRALIAN CONCILIATION

AND ARBITRATION COMMISSION

CONCILIATION AND ARBITRATION ACT, 1904

C. Nos.

146, 168, 154. and 108 of 1977

PUBLIC SERVICE ARBITRATION

ACT, 1920

C. No.

172 of 1977

NATIONAL

WAGE

CASE

MARCH

1977

MELBOURNE, 31 MARCH 1977

SIR JOHN MOORE, PRESIDENT

MR. JUSTICE LUDEKE

MR.

DEPUTY PRESIDENT I S M C

MR. PUBLIC SERVICE ARBITRATOR TAYLOR

MR. COMMISSIONER NEIL

REASONS

FUR

DECISION

.

L .

These are claims

for increases in rates

of pay following

upon the publication

of the December quarter 1976 Consumer Price

Index.

The Index which

would normally have been published on

about 21 January 1977

was not published until 22 February 1977

and these proceedings cormnenced on 1 March 1977.

The Index

moved by 6 per cent for the quarter.

This was the largest

quarterly increase since indexation

was introduced. The Australian

Statistician has attributed 3.2

per cent of this increase

directly to changes in the method of financing health insurance

and 2.8 per cent for other reasons.

In brief form the claims and attitudes of parties and

interveners are:

Australian Council of

The 6 per

cent increase for the

Trade Unions

December 1976 quarter plus

2 per

cent catch-up for the tvo quarters

of 1976 for which full indexation

was not granted, all to operate from

15 February 1977.

Council of Australian

6 per cent increase to operate

Government Employee

Organizations

from 15 February 1977.

Council of Professional The same

as

C.A.G.E.O.

Associations

Australian

Council of

The

same as A.C.T.U.

Salaried and Professional Associations

Australian Public

The same as C.A.G.E.O.

Service Federation

Australian Journalists'

The same as

C.A.G.E.O.

Association

.

3.

New South Wales

Primary proposition - if ComPonwealth

Government agreed to any increase

being non taxable then

a much lover

increase than 6 per cent.

Alternative or secondary proposition -

6 per cent to a plateau of Average

Weekly Earnings thereafter a flat

money amount.

South Australia

2.8 per cent increase to all rates,

plus 3.2 per cent to $12,000 and then

a flat money amount for this part of

the C.P.I.

Tasmania

The same as South Australia

Victoria

2.5 per cent increase to all rates.

Queensland

As to the 2.8 per cent increase, a

percentage less than that amount to

all rates, the figure

to be determined

by the Commission; no increase for the

3.2 per cent increase.

Western Australia

The aame as the Commonwealth.

Commonwealth

$2.90 increase to all for the 3.2 per cent;

no increase for the 2.8 per cent.

Private employers

No increase on economic grounds but if

on other grounds, mlnimal.

No increase

for the 3.2 per cent, though if any increase a

flat amount of $2.50.

.

4 .

Substantial compliance

Again we were given statistics on industrial disputes and on movements in rates of pay all of which are relevant to this question and have been the subject of discussion in earlier

judgments.

In this case there has

been no serious challenge to the

unions' submission that there has been substantial compliance. disputation with…

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AGLC
National Wage Case March 1977 [1977] FCA 9
Case
[1977] FCA 9
Decision Date

CaseChat Overview and Summary

In the National Wage Case of March 1977, the Australian Conciliation and Arbitration Commission deliberated on wage increases following the December quarter 1976 Consumer Price Index (CPI) which had risen by 6%. The Commission considered claims for wage increases from various unions and employers, along with the state of the economy, substantial compliance with guidelines, and the impact of wage adjustments on inflation and employment. The Commission acknowledged the significant inflationary impact of wage increases but also recognized the need for wage adjustments to maintain equity and industrial relations. The Commission decided on a $2.90 flat rate increase for the Medibank component of the CPI and a $2.80 flat rate increase for the remaining CPI component. The decision emphasized the importance of a systematic approach to wage fixation, considering long-term implications, and the need for a broader review of the wage adjustment system. The Commission proposed an inquiry into various aspects of the wage adjustment system, including the appropriateness of the CPI and the possibility of a two-tier wage system. The Commission's decision aimed to balance inflationary risks with the need for equitable wage adjustments.

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

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Ratio Decidendi

Legal Principle Established

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