Annual wage review [2013] FWCFB 4000 (3 June 2013)

Fair Work Commission (Full Bench)|2013-06-03|Before: Commissioner Spencer, Commissioner Hampton, Deputy President Watson, President Senior, President Watson, Senior DP Watson

(#P185_3940) Australian Bureau of Statistics, Catalogue No. 6306.0 - Employee Earnings and Hours, Australia, May 2012.

(#P194_5975) AFEI submission at p. 3, para. 7.

(#P195_6164) ACCI submission at p. 12, para. 45; pp. 59-60, para. 201; AFEI submission at p. 3, para. 7; ABI submission at p. 4, paras 2.7-2.8; p. 8, para. 3.11.

(#P209_10158) See s.186(2)(d); the Commission may approve an enterprise agreement that does not pass the 'better off overall test' if satisfied that, because of exceptional circumstances, the approval of the agreement would not be contrary to the public interest - s.189.

(#P212_10780) [2012] FWAFB 5000.

(#P215_11090) [2012] FWAFB 5000 at paras 257 and 258.

(#P228_13845) See Chart 4.6.

(#P245_17181) Section 576T(2) of the WR Act permitted State based differences as part of the award modernisation process but only for a limited period designed to allow for transitional arrangements.

(#P248_18353) [2009] AIRCFB 800, at paras 29 and 30.

(#P253_19584) [2012] FWAFB 5000, at para 166.

(#P264_21641) MA000010.

(#P271_23712) ACTU submission at p. 118, para. 360, ACOSS submission at p. 19 and ACCI submission at p. 25, para. 116, Australian Government submission, p. 42, para 192.

(#P272_24145) [2010] FWAFB 4000 at para 237.

(#P279_25427) ACOSS submission at pp. 26-27

(#P280_25705) ACOSS (2012) Poverty in Australia, ACOSS Paper 194.

(#P297_29280) Australian Bureau of Statistics, Catalogue No. 6306.0 - Employee Earnings and Hours, Australia, May 2012.

(#P298_29574) Australian Bureau of Statistics, Catalogue No. 6306.0 - Employee Earnings and Hours, Australia, May 2010.

(#P305_30541) [2011] FWAFB 3400.

(#P308_30946) MA000010; This is the lowest level in the Manufacturing Award.

(#P331_35931) [2010] FWAFB 4000.

(#P334_36813) [2010] FWAFB 4000.

(#P337_36955) Safety Net Review - Wages May 2004.

(#P397_42505) [2012] FWCFB 5000.

(#P398_42651) Annual Wage Review 2011-12 Decision [2012] FWAFB 5000 at p. 12, para. 41: For example, promoting productivity and economic growth (s.3(a)); promoting flexible modern work practices and the efficient and productive performance of work (s.134(1)(d)); the likely impact of any determination on business including on productivity, employment costs and the regulatory burden (s.134(1)(f)); the likely impact of any determination on employment growth, inflation and the sustainability, performance, and competitiveness of the national economy (s.134(1)(h)); the performance and competitiveness of the national economy, including productivity, business competitiveness and viability, inflation and employment growth (s.284(1)(a)); and acknowledging the special circumstances of small and medium-sized businesses (s.3(g)).

(#P399_43478) Annual Wage Review 2011-12 Decision [2012] FWAFB 5000 at p. 12, para. 41: For example; the establishment and maintenance of a safety net of fair, relevant and enforceable minimum wages within the context of an easy to understand, stable and sustainable modern award system (ss.3(b), 134(1), 134(1)(g) and 284(1)); the promotion of social inclusion through increased workplace participation (ss.134(1)(c) and 284(1)(b)); relative living standards and the needs of the low paid (ss.134(1)(a) and 284(1)(c)); the principle of equal remuneration for work of equal or comparable value (ss.134(1)(e) and 284(1)(d)); and providing a comprehensive range of fair minimum wages to junior employees, employees to whom training arrangements apply and employees with a disability (s.284(1)(e)).

(#P400_44291) Annual Wage Review 2011-12 Decision [2012] FWAFB 5000 at p. 12, para. 41: For example, the need to encourage collective bargaining (s.134(1)(b); see also s.3(f)).

(#P411_45320) [2012] FWAFB 5000 at para 257 and 258.

(#P429_47185) ACCI submission March 2013 at paras 73 - 76.

(#P441_48383) April 1997 Safety Net Review - Wages decision (1997) 71 IR 1 at 17.

(#P442_48717) (1989) 27 IR 196 at 201.

(#P443_48808) (1988) 25 IR 170.

(#P444_48941) (1997) 75 IR 268 at 297-9.

(#P445_48995) (1998) 123 IR 240 at 253.

(#P446_49048) For example see [2009] AIRCFB 50 at paras 46-8 and [2009] AIRCFB 345 at paras 43 and 94.

(#P449_50220) ABI Submission at paragraph 2.15.

(#P452_51593) See s.186(2)(d); the Commission may approve an enterprise agreement that does not pass the 'better off overall test' if satisfied that, because of exceptional circumstances, the approval of the agreement would not be contrary to the public interest - s.189.

(#P471_55373) CCIQ submission at p7 para 15(b).

(#P474_55577) ARA submission at p13.

(#P479_55910) Business SA submission at p7 para 2.4.

(#P486_56976) [2012] FWAFB 5000 at paras 281-282

(#P509_60243) ABI submission at para. 11.10.

(#P533_64645) Chamber of Commerce and Industry Queensland submission, p. 7 at paras 14-15; HR Nicholls Society submission at p. 1; Master Grocers Australia submission at pp. 4, 6.

(#P538_65329) Australian Chamber of Commerce and Industry submission, p. 32 at para. 147; Australian Federation of Employers and Industry submission , p. 8 at para. 19; Victorian Employers' Chamber of Commerce and Industry submission at pp. 1-2; Master Plumbers and Mechanical Services Association submission, p. 4 at para. 3.6; Australian Retailers Association submission at p. 5; Business SA submission, p. 5 at para. 2.3; National Farmers' Federation submission, p. 17 at para. 6.2; Australian National Retailers Association submission, p. 4 at paras 1.1-1.2; National Retailers Association submission, p. 13 at para. 56; CCIQ submission, p. 7 at paras 14-15; Growcom submission at p. 7; Victorian Automobile Chamber of Commerce submission at pp. 5, 16; Master Grocers Australia submission at p. 4; Restaurant and Catering Australia submission, p. 13 at para. 39.

(#P539_66720) AFEI submission at p. 3, para. 7.

(#P540_67133) ACCI submission, p. 12 at para. 45; AFEI submission , p. 8 at para. 19; Business SA submission, p. 5 at paras 2.3-2.4; VECCI submission at pp. 1-2; ARA submission at pp. 5-6; MPMSAA submission, p. 4 at paras 3.6-3.7.

(#P543_68179) ACCI submission at p. 60, para. 203.

(#P546_68387) CCIQ submission, p. 7 at paras 14-15.

(#P549_68614) NRA submission, p. 13 at para. 57; ANRA submission, p. 4 at para. 1.2.

(#P550_68844) NRA submission, p. 13 at para. 56.

(#P551_68986) ANRA submission, p. 4 at paras 1.1-1.2.

(#P557_69217) Ai Group submission at pp. 3, 55.

(#P558_69420) Ai Group submission at p. 55.

(#P561_69640) ABI submission, p. 4 at para. 2.1; AAA submission at p. 2.

(#P564_69833) AHA submission at p. 2.

(#P569_70041) ACTU submission, pp. 4-5 at paras 16-20; ACCER submission, pp. 142-143 at para. 458.

(#P570_70306) The C10 level refers to the rate of pay for an employee classified as an Engineering/ Manufacturing Tradesperson - Level I under the Manufacturing Award, and equivalent levels within other modern awards.

(#P571_70884) ACTU submission, p. 7 at para. 28.

(#P576_71500) ACTU submission, p. 20 at para. 74.

(#P577_71752) ACTU submission, p. 21 at para. 75.

(#P580_72115) ACTU submission, p. 8 at para. 34.

(#P583_72441) ACCER submission, p. 61 at para. 197.

(#P586_73081) ACCER submission, p. 143 at para. 461.

(#P589_73357) ACCER submission, p. 34 at para. 98.

(#P590_73717) Ai Group submission in reply, at pp. 3-4.

(#P633_77648) All data are seasonally adjusted unless otherwise noted.

(#P638_78281) RNNDI takes into account the impact of changes in prices of exports relative to imports, the real impact of income flows between Australia and the rest of the world, and the consumption of fixed capital. Income flows between Australia and the rest of the world are fairly smooth over time and changes tend to have little impact on short-term movements in RNNDI. The consumption of fixed capital tends to stall growth in RNNDI, but for the most part, the impact on short-term movement is small. Australian Bureau of Statistics - Catalogue No. 5206.0, 'Real net national disposable income - a new national accounts measure', Australian National Accounts: National Income, Expenditure and Product, Dec 2001, Feature Article.

(#P641_79058) ABS, Australian National Accounts: National Income, Expenditure and Product, Dec 2012, Catalogue No. 5206.0.

(#P649_79599) OECD, Economics: Key Tables from OECD, Table No. 13, OECD iLibrary.

(#P658_80938) ABS, Australian National Accounts: National Income, Expenditure and Product, Dec 2012, Catalogue No. 5206.0.

(#P665_81549) Bishop J, Kent C, Plumb M and Rayner V (2013) The Resources Boom and the Australian Economy: A Sectoral Analysis, RBA Bulletin, March Quarter, p. 40 as cited in ACCI submission at p.41, para. 168.

(#P670_82223) Source: RBA, Index of Commodity Prices, April 2013.

(#P677_82673) op cit., Bishop et al at p.40.

(#P678_82812) Ibid, p.44.

(#P681_83266) Ibid, p.44-7.

(#P684_83521) Ibid, p.47-8.

(#P698_85221) Ibid, p.48.

(#P704_85524) Bishop J, Kent C, Plumb M & Rayner V (2013), The resources boom and the Australian economy: a sectoral analysis, RBA Bulletin, March Quarter.

(#P715_86357) Schweppes Australia Pty Ltd v United Voice - Victoria Branch [2012] FWAFB 7858, paras 38 - 45.

(#P724_88497) ss.134(1)(a) and 284(1)(c).

(#P727_88906) ACTU submission, page 6, para 26 and ACCER submission, pp.6 and para 41 at pp. 20-21.

(#P730_89129) ACTU submission p.52, para 160.

(#P733_89332) ACTU submission, p.55, para 169.

(#P734_89389) ACTU submission, p.57-8, paras 172 and 173.

(#P737_89633) ACTU submission, p.58, para 174.

(#P740_89848) ABI submission, p.15, para 8.1

(#P749_91193) Australian National Accounts: National Income, Expenditure and Product, 5206.0, December 2012: Analysis and comments

(#P754_91870) ABS, Australian National Accounts: National Income, Expenditure and Product, Dec 2012, Catalogue No. 5206.0.

(#P763_92320) ABS, Australian National Accounts: National Income, Expenditure and Product, Dec 2012, Catalogue No. 5206.0.

(#P799_97820) OECD Employment Outlook 2012, Chapter 3, Labour Losing to Capital: What Explains the Declining Labour Share.

(#P804_98287) 'Productivity boost first, then labour can share'. Australian Financial Review, Friday 18 January 2013.

(#P807_99649) ACTU Post-Budget Submission, p.14, para 56.

(#P808_99810) ACTU Post-Budget Submission, p.15, para 59.

(#P809_100100) ACTU Post-Budget Submission, p.15, paras 60 and 61.

(#P816_101854) Ai Group submission, pp. 26-7, para 2.8

(#P823_103797) ABS, Australian National Accounts: National Income, Expenditure and Product, Dec 2012, Catalogue No. 5206.0.

(#P831_104708) Rizov M. and Croucher R., The impact of the UK national minimum wage on productivity by low-paying sectors and firm-size groups, Report to the Low Pay Commission, London, March 2011.

(#P832_105296) Ibid, p.24.

(#P835_105352) OECD Employment Outlook 2012, Chapter 3, Labour Losing to Capital: What Explains the Declining Labour Share.

(#P836_105616) Ibid, pp.111 and 145.

(#P847_107067) ABS, Australian National Accounts: National Income, Expenditure and Product, Dec 2012, Catalogue No. 5206.0.

(#P854_107641) Australian National Accounts, 5206, as cited in footnote to Table 3.1 of the Statistical Report.

(#P862_110202) ABS, Australian National Accounts: National Income, Expenditure and Product, Dec 2012, Catalogue No. 5206.0.

(#P867_110568) Ai Group submission, p.7.

(#P868_111068) ACTU reply submission, at p.20, para. 86.

(#P871_111270) VACC submission at p. 14.

(#P872_111384) VACC submission at p. 15.

(#P873_111603) R&CA submission at pp. 4,5.

(#P874_111837) ACTU reply submission, at p. 21, para 88.

(#P877_112199) Insolvency and Trustee Service Australia, June 2012; Australian Bureau of Statistics, Labour Force, Australia, Detailed Quarterly, Nov 2012, Catalogue No. 6291.0.55.003_._ Business bankruptcy rate adopted from Bickerdyke, I, Lattimore, R, and Madge, A, 2000, Business Failure and Change: An Australian Perspective, Productivity Commission Staff Research Paper, Ausinfo, Canberra.

(#P881_112882) Automotive Skills Australia, February 2013, Automotive Environmental Scan 2013, ASA, Australia.

(#P882_113266) VACC submission at p. 14.

(#P883_113680) Business Related Bankruptcies under the Bankruptcy Act 1966 - Insolvency and Trustee Service Australia Annual Report 2011/12 , Table 38.

(#P886_114024) ABS Cat. No. 8165; Counts of Australian Businesses Including Entries and Exits June 2007 - June 2012,

(#P887_114265) ABS Cat. No. 8165; Counts of Australian Businesses Including Entries and Exits June 2007 - June 2012, Summary of results , p.6.

(#P888_114430) ABS Cat. No. 8165; Counts of Australian Businesses Including Entries and Exits June 2007 - June 2011, Summary of Findings, p.6.

(#P889_114641) During the 2011-12 financial year, the 'Accommodation and Food Services' and 'Administrative and Support Services' industries had the highest entry rates of 16.7% and 16.4% respectively. ABS Cat. No. 8165; Counts of Australian Businesses Including Entries and Exits June 2007 - June 2012, Summary of Findings, p.6.

(#P890_115156) ABS Cat. No. 8165; Counts of Australian Businesses Including Entries and Exits June 2007 - June 2012, table 1.

(#P891_115422) ABS Cat. No. 8165; Counts of Australian Businesses Including Entries and Exits June 2007 - June 2012, table 1.

(#P894_116326) MGA submission, p.5.

(#P904_117512) ARA Submission, p.9.

(#P905_117676) ANRA Submission p.7. para 2.10.

(#P910_118425) ABS, Australian National Accounts: National Income, Expenditure and Product, Dec 2012, Catalogue No. 5206.0.

(#P917_119024) [2012] FWAFB 5000, at para 277

(#P918_120026) Australian Bureau of Statistics 8501.0 - Retail Trade, Australia, Mar 2013.

(#P923_120944) Australian Bureau of Statistics, Catalogue No. 8501.0 - Retail Trade, Australia, March 2013.

(#P926_121826) Australian Government submission at p. 17, para. 63.

(#P927_122013) ACCI submission at p. 13, para. 47.

(#P930_122440) [2009] AIRCFB 800, at paras 29 and 30.

(#P933_123296) VACC submission at p. 8, MTASA submission, p.5 at para. 2.33 and HIA submission, at p.6, para 3.4.1.

(#P934_123490) AM2012/18 and others.

(#P935_123826) HIA submission, at p.6, para 3.4.1.

(#P938_124290) Ai Group submission, p.58.

(#P941_124569) Victorian Government submission at pp. 12-13, para. 2.30.

(#P942_124756) AHA submission at p. 6; MGA submission at p. 16, para. 7.5.1; RCA submission at p. 12, para. 34.

(#P943_125047) R&CA submission at p. 12, para. 34.

(#P944_125235) AHA submission at p. 5.

(#P947_126006) Australian Government, Strong Growth, Low Pollution, Modelling A Carbon Price, http://archive.treasury.gov.au/carbonpricemodelling/content/report.asp, Chapter 5, p. 85.

(#P950_127307) MGA submission at p. 13, paras 7.2.1-7.2.2; CCIQ submission at p. 22, para. 49; NRA submission at p. 11, paras 46-48.

(#P951_127503) NRA submission at p. 11, para. 46.

(#P952_127739) MGA submission at p. 13, para. 7.2.2.

(#P955_128112) MGA submission, p. 13 at para. 7.2.2; Productivity Commission (2011), Economic Structure and Performance of the Australian Retail Industry, Report No. 56, Canberra, released 9 December, p. 98.

(#P958_128670) Around 1 per cent; Productivity Commission (2011), Economic Structure and Performance of the Australian

Retail Industry, Report No. 56, Canberra, released 9 December, p. 102.

(#P966_130227) The trimmed mean is the weighted average of the central 70 per cent of the price change distribution. The weighted median is calculated as the average price change at the 50th percentile by weight of the price change distribution.

(#P969_130707) The CPI and LCI differ in their approach to three areas of expenditure: purchase of dwellings; purchase of durable items; and financial services and the use of credit.

(#P972_131350) ABS, Selected Living Cost Indexes, Australia, Dec 2012 - Explanatory notes, Catalogue No. 6467.0.

(#P977_132945) RBA, Inflation Target, http://www.rba.gov.au/inflation/inflation-target.html.

(#P984_133486) ABS, Consumer Price Index, Australia, Mar 2013, Catalogue No. 6401.0; ABS, Selected Living Cost Indexes, Australia, Mar 2013, Catalogue No. 6467.0.

(#P992_134355) ABS, Consumer Price Index, Australia, Mar 2013, Catalogue No. 6401.0.

(#P1106_135026) ACCI submission at p. 59, para. 200; Business SA submission at p. 17, para. 6.3.2.1.

(#P1109_135592) Australian Government at p. 23, para. 102.

(#P1112_136098) ACCI submission at p. 12, para. 45; pp. 59-60, para. 201; AFEI submission at p. 3, para. 7; ABI submission at p. 4, paras 2.7-2.8; p. 8, para. 3.11.

(#P1113_136469) ACTU submission at p. 45, para. 136.

(#P1114_136730) Australian Government submission, p. 11, para. 14.

(#P1117_136974) [2012] FWAFB 5000, at para 166.

(#P1120_137737) ACCI submission at p. 12, para. 45; pp. 59-60, para. 201; AFEI submission at p. 3, para. 7; ABI submission at p. 4, paras 2.7-2.8; p. 8, para. 3.11.

(#P1125_138977) ACCI submission at p. 60, para. 203.

(#P1128_139167) [2010] FWAFB 4000

(#P1129_139443) Business SA submission at p. 6.

(#P1136_140926) [2010] FWAFB 4000, para. 241.

(#P1143_141443) ABS, Wage Price Index, Australia, Dec 2012, Catalogue No. 6345.0..

(#P1146_142075) ABS, Average Weekly Earnings, Australia, Nov 2012, Catalogue No. 6302.0

(#P1149_142874) DEEWR, Trends in Federal Enterprise Bargaining, December quarter 2012; http://www.deewr.gov.au/WorkplaceRelations/Pages/Reports.aspx

(#P1156_144088) Estimates of AWOTE are published on a biannual basis for May and November. The transition to biannual frequency has resulted in a new seasonally adjusted and trend series which commenced for May 2012. Therefore, original data are used to present a longer time period.

(#P1159_144768) ABS, Average Weekly Earnings, Australia, Nov 2012, Catalogue No. 6302.0; ABS, Wage Price Index, Australia, Mar 2012, Catalogue No. 6345.0; DEEWR, Trends in Federal Enterprise Bargaining, December quarter 2012, http://www.deewr.gov.au/WorkplaceRelations/Pages/Reports.aspx; Metal, Engineering and Associated Industries Award 1998; Manufacturing and Associated Industries and Occupations Award 2010 (from 1 January 2010).

(#P1165_146264) DEEWR, Trends in Federal Enterprise Bargaining, December quarter 2012, http://www.deewr.gov.au/WorkplaceRelations/Pages/Reports.aspx

(#P1172_147337) Australian National Accounts: National Income, Expenditure and Product, Dec 2012, Catalogue No. 5206.0.

(#P1180_147736) ABS, Labour Force, Australia, April 2013. Catalogue No. 6202.0

(#P1183_147829) ABS, Labour Force, Australia, Apr 2013, Catalogue No. 6202.0.

(#P1188_148146) Ai Group submission at p. 15; AFEI submission at p. 11, para. 27 and ACCI submission at p. 46, para. 177.

(#P1194_148637) ABS, Labour Force, Australia, Apr 2013, Catalogue No. 6202.0.

(#P1202_149495) ABS, Labour Force, Australia, Detailed, Quarterly, Feb 2013, Catalogue No. 6291.0.55.003.

(#P1212_150881) ABS, Labour Force, Australia, Detailed, Quarterly, Feb 2013, Catalogue No. 6291.0.55.003.

(#P1220_151654) Bishop J, Kent C, Plumb M & Rayner V (2013), The resources boom and the Australian economy: a sectoral analysis, RBA Bulletin, March Quarter.

(#P1227_152154) ABS, Labour Force, Australia, Apr 2013, Catalogue No. 6202.0.

(#P1234_153057) ABS, Labour Force, Australia, Detailed, Quarterly, Feb 2013, Catalogue No. 6291.0.55.003.

(#P1306_154331) ABS, Labour Force, Australia, Apr 2013, Catalogue No. 6202.0; ABS, Labour Force, Australia, Detailed - Electronic Delivery, Apr 2013, Catalogue No. 6291.0.55.001.

(#P1315_155532) ABS, Labour Force, Australia, Apr 2013, Catalogue No. 6202.0; ABS, Labour Force, Australia, Detailed - Electronic Delivery, Apr 2013, Catalogue No. 6291.0.55.001.

(#P1321_156233) Australian Government submission at p. 32, paras 133 and 135.

(#P1322_156508) Australian Government submission at p. 32, para. 137.

(#P1323_156769) ACOSS submission, at pp. 41-42.

(#P1326_156928) Australian Government submission at p. 30, para. 126; Victorian Government submission at p. 11, para. 2.20.

(#P1327_157210) Australian Government submission at p. 30, para. 128.

(#P1328_157430) ACCI submission at pp. 48-49, para. 181; Ai Group submission at p. 16.

(#P1329_157558) ACCI submission at p. 48, para. 180.

(#P1330_157756) ACCI submission at pp. 48-49, para. 181; Ai Group submission at p. 16.

(#P1335_158152) Australian Government submission at p. 30, para. 127.

(#P1338_158573) ACTU submission, p.69, para 209.

(#P1339_158880) ACTU submission, p.69, para 211-12.

(#P1342_159051) ACTU submission in reply at p. 6, Figure 1.

(#P1343_159414) Australian Government Response to Consultation Questions, p. 13.

(#P1346_159581) Australian Government responses to questions for consultations at p.13.

(#P1353_160250) Lowe P (2012), The Labour Market, Structural Change and Recent Economic Developments, Speech to the Financial Services Institute of Australasia (Finsia) Leadership Event, Hobart, 9 October 2012, RBA Bulletin, December Quarter, pp. 108-109.

(#P1358_161905) ABS, Labour Force, Australia, Detailed - Electronic Delivery, Apr 2013, Catalogue No. 6291.0.55.001.

(#P1461_164294) ABS, Labour Force, Australia, Detailed - Electronic Delivery, Apr 2013, Catalogue No. 6291.0.55.001.

(#P1524_164745) ACCI submission at pp. 51-55, paras 186-193, Ai Group submission at pp. 36-41; ABI submission at p. 13, para. 7.5.

(#P1531_165490) ABS, Labour Force, Detailed, Quarterly, Feb 2013, Catalogue No. 6291.0.55.003.

(#P1538_166075) ABS, Labour Force, Australia, Apr 2013, Catalogue No. 6202.0.

(#P1605_167827) ABI submission at p. 13, para. 7.5; ACCI submission at p. 53, para 190.

(#P1606_168124) ACCI submission at pp. 53-4, para. 191.

(#P1609_168761) ABS, Underemployed Workers, Sep 2012, Catalogue No, 6265.0.

At a glance

Court

Decision date

Before

Source

Judgment (539 paragraphs)

Legislation Cited (13)

Cases Cited (12)