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Re Annual Wage Review 2018-19

Re Annual Wage Review 2018-19

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Case Copied 30 May 2019 71 min read

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[2019] FWCFB 3500

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.285 - Annual wage review

Annual Wage Review 2018–19
(C2019/1)

JUSTICE ROSS, PRESIDENT
VICE PRESIDENT HATCHER
DEPUTY PRESIDENT ASBURY
COMMISSIONER HAMPTON
MR APTED
PROFESSOR RICHARDSON
MR GIBBS

MELBOURNE, 30 MAY 2019

Paragraph
1.	Overview and the Decision	[1]
2.	Economic and Labour Market Considerations	[84]
3.	Relative Living Standards and the Needs of the Low Paid	[196]
4.	Other Relevant Considerations	[363]
5.	Transitional Instruments and Other Matters	[400]
6.	Conclusion	[453]
Appendix 1—Modern awards that contain the NMW and equivalent rates as at 1 July 2018
Appendix 2—Research for Annual Wage Reviews
Appendix 3—Proposed Minimum Wages Adjustments
Appendix 4—Index of Material
Appendix 5—List of Appearances

Abbreviations

2009–10 Review decision	Annual Wage Review 2009–10 decision
2010–11 Review decision	Annual Wage Review 2010–11 decision
2011–12 Review decision	Annual Wage Review 2011–12 decision
2012–13 Review decision	Annual Wage Review 2012–13 decision
2013–14 Review decision	Annual Wage Review 2013–14 decision
2014–15 Review decision	Annual Wage Review 2014–15 decision
2015–16 Review decision	Annual Wage Review 2015–16 decision
2016–17 Review decision	Annual Wage Review 2016–17 decision
2017–18 Review decision	Annual Wage Review 2017–18 decision
2018–19 Review	Annual Wage Review 2018–19
AAWI	average annualised wage increase
ABI and NSWBC	Australian Business Industrial and the NSW Business Chamber Ltd
ABS	Australian Bureau of Statistics
ACBC	Australian Catholic Bishops Conference
ACCI	Australian Chamber of Commerce and Industry
ACCER	Australian Catholic Council for Employment Relations
ACOSS	Australian Council of Social Service
Act	Fair Work Act 2009 (Cth)
ACTU	Australian Council of Trade Unions
AENA	Average earnings from the National Accounts
Ai Group	Australian Industry Group
APCSs	Australian Pay and Classification Scales
Apprentices decision	Modern Awards Review 2012—Apprentices, Trainees and Juniors, [2013] FWCFB 5411
ARA	Australian Retailers Association
AWE	average weekly earnings
AWOTE	average weekly ordinary time earnings
AWU	Australian Workers’ Union
C4	Engineering Associate/Laboratory Technical Officer Level 1
C10	Engineering/Manufacturing Tradesperson Level 1
C14	Engineering/Manufacturing Employee Level 1
CCIQ	Chamber of Commerce and Industry Queensland
CCIWA	Chamber of Commerce and Industry Western Australia
CoE	Characteristics of Employment Survey
Commission	Fair Work Commission
CPI	Consumer Price Index
CURF	confidentialised unit record file
ERO	Equal Remuneration Order
EEH	Survey of Employee Earnings and Hours
GDP	gross domestic product
GVA	gross value added
HES	Household Expenditure Survey
HFCE	Household final consumption expenditure
HIA	Housing Industry Association
HILDA	Household, Income and Labour Dynamics in Australia
IMF	International Monetary Fund
LCI	Living Cost Index
LMITO	Low and Middle Income Tax Offset
Manufacturing Award	Manufacturing and Associated Industries and Occupations Award 2010
MGA	Master Grocers Australia
MIHL	Minimum Income for Healthy Living
Miscellaneous Award	Miscellaneous Award 2010
NCVER	National Centre for Vocational Education Research
NLW	National Living Wage
NMW	national minimum wage
NRA	National Retail Association
NSA	Newstart Allowance
NTWS	National Training Wage Schedule
OECD	Organisation for Economic Co-operation and Development
Panel	Expert Panel for annual wage reviews
Penalty Rates decision	4 yearly review of modern awards – Penalty Rates – hospitality and retail industries decision
Penalty Rates Review decision

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2019] FWCFB 3500
Decision Date: 30 MAY 2019

CaseChat Overview and Summary

The Expert Panel for annual wage reviews was required to conduct and complete a review of the national minimum wage (NMW) and modern award minimum wages in each financial year. The Panel received submissions from the Australian Government, state governments, bodies that represent the interests of employees and employers, other entities and individuals. Most parties proposed an increase to the NMW or modern award minimum wages, with the exception of a few who proposed no increase. The Panel was required to take into account various economic and labour market considerations. It also took into account the relative living standards and needs of the low paid, the principle of equal remuneration for work of equal or comparable value, and the need to encourage collective bargaining. The Panel rejected a party's challenge that the relative living standards and needs of the low paid were the only considerations to be taken into account. It concluded that the Panel must take into account all relevant statutory considerations. The Panel awarded a 3.0 per cent increase to the NMW and modern award minimum wages. The NMW will be $740.80 per week or $19.49 per hour. The hourly rate was calculated by dividing the weekly rate by 38, on the basis of the 38-hour week for a full-time employee. This constitutes an increase of $21.60 per week to the weekly rate or 56 cents per hour to the hourly rate.

Orders