| [2020] FWCFB 3500 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.285—Annual wage review
Annual Wage Review 2019–20
(C2020/1)
| JUSTICE ROSS, PRESIDENT | MELBOURNE, 19 JUNE 2020 |
Contents
| Paragraph | ||
| 1. | Reasons for Decision of Justice Ross, Vice President Catanzariti, Deputy President Asbury, Commissioner Hampton, Mr Ferguson and Ms Labine-Romain The Decision | [1] |
| 2. | The Legislative Framework | [193] |
| 3. | Economic and Labour Market Considerations | [272] |
| 4. | Relative Living Standards and the Needs of the Low Paid | [338] |
| 5. | Other Relevant Considerations | [386] |
| 6. | Transitional Instruments and Other Matters | [406] |
| 7. | Conclusion | [464] |
| 8. | Reasons for Decision of Professor Wooden | [476] |
Abbreviations
| 2011–12 Review decision | Annual Wage Review 2011–12 decision |
| 2012–13 Review decision | Annual Wage Review 2012–13 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 decision | Annual Wage Review 2018–19 decision |
| AAWI | average annualised wage increase |
| ABI | 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 |
| ACCS | Additional Child Care Subsidy |
| ACOSS | Australian Council of Social Service |
| Act | Fair Work Act 2009 (Cth) |
| ACTU | Australian Council of Trade Unions |
| Ai Group | Australian Industry Group |
| APCSs | Australian Pay and Classification Scales |
| April Statement | |
| ATO | Australian Taxation Office |
| 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 |
| CCS | Child Care Subsidy |
| Commission | Fair Work Commission |
| CPI | Consumer Price Index |
| Discussion paper | Fair Work Commission (2020), What can and can’t be done in the Annual Wage Review 2019–20, Discussion Paper, 13 May. |
| EEH | Survey of Employee Earnings and Hours |
| FCIA | Federal Chamber of Automotive Industries |
| GDP | gross domestic product |
| GVA | gross value added |
| 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 2020 |
| MGA | Master Grocers Australia Limited |
| NCVER | National Centre for Vocational Education Research |
| NMW | national minimum wage |
| NNDSS | National Notifiable Diseases Surveillance System |
| NSA | Newstart Allowance (now JobSeeker) |
| NTWS | National Training Wage Schedule |
| OECD | Organisation for Economic Co-operation and Development |
| Panel | Expert Panel for annual wage reviews |
| Rail Award | Rail Industry Award 2020 |
| Rail Employers | Aurizon, Australian Rail Track Corporation, Brookfield Rail Pty Ltd, Sydney Trains and V/Line Passenger Pty Ltd |
| RBA | Reserve Bank of Australia |
| R&CA | Restaurant and Catering Industry Association |
| Review | Annual Wage Review |
| RNNDI | real net national disposable income |
| RTBU | Australian Rail, Tram and Bus Industry Union |
| SDA | Shop Distributive and Allied Employees’ Association |
| SES Award | Supported Employment Services Award 2020 |
| Statistical report | Statistical Report—Annual Wage Review 2019–20 |
| SWS | Supported Wage System |
| Transitional Act | |
| UK | United Kingdom |
| US | United… |
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- Case
- [2020] FWCFB 3500
- Decision Date
CaseChat Overview and Summary
This Review was undertaken during a global pandemic, and the Panel had to consider the economic consequences of the pandemic on the review. The outbreak of the coronavirus, COVID-19, and the measures put in place to contain the spread of the virus had led to significant shifts in the way work and society was conducted. The Panel had to take into account the economic environment, labour market considerations, relative living standards and the needs of the low paid, and other relevant considerations in making its decision.
The Panel concluded that the economic considerations weighed in favour of greater moderation in terms of the outcome of the Review. However, the Panel also considered that the impact of an increase in minimum wages on aggregate demand, albeit modest, was relevant because it was obliged to take into account the likely impact of any exercise of modern award powers on the performance of the national economy. The Panel concluded that it was appropriate to increase the NMW and modern award minimum wages, taking into account the proposed NMW and other relevant considerations.
The Panel awarded an increase of 1.75 per cent to the NMW and modern award minimum wages. The NMW would be $753.80 per week or $19.84 per hour, and the hourly rate would be calculated by dividing the weekly rate by 38, on the basis of the 38-hour week for a full-time employee. This constituted an increase of $13.00 per week to the weekly rate or 35 cents per hour to the hourly rate.
The Panel also considered the timing of these adjustments. The Panel decided that the NMW order would come into operation on 1 July 2020, and the adjustments to modern award minimum wages would be deferred for some awards. The Panel concluded that the data showing the differential impact of the pandemic on particular industry sectors and the import of s.286(2) of the Act warranted a more nuanced approach than that advocated by some parties.
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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