AFEI submission to FWA—annual wage review

AFEI has called for restraint in the first of Fair Work Australia’s annual wage reviews for 2009–10. In our submission to FWA we have proposed a rise of no more than $12.50 per week based on the impact of these four main issues:

  1. the economic context
  2. the minimum wages objective
  3. the rise in the costs of labour under modern awards
  4. the division 2B state awards.

The economic context

Fair Work Australia should demonstrate moderation and restraint in its 2010 annual wage review. While certain economic indicators are improving, it’s too early to be sure that there will be a complete recovery in all industry sectors and across all regions in 2010–2011.

The minimum wages objective

The economic circumstances of the minimum wage sectors and occupations, who are the focus of this review, should be specifically taken into account if the object of promoting ‘social inclusion’ through increased work force participation is to be met.

The rise in the costs of labour under modern awards

FWA must consider the modern award cost increases employers are experiencing in spite of the transitional arrangements. The minimum wage of modern award rates for employees earning up to the C10 tradesperson classification rate of $637.60 per week shouldn’t be increased by more than a flat dollar amount of $12.50 per week.

For employees earning in excess of the trades rate there should be an increase granted of $10.50 per week. The national minimum wage order should be increased to $556.40. There should also be a flow-on of a proportionate or pro-rata increase to relevant subsidiary minimum rates and absorption into overaward rates.

Division 2B state awards

Fair Work Australia shouldn’t vary wages in the Division 2B state awards. 2B award employees have already been recipients of 2009 minimum wage increases in their jurisdictions or will receive these increases in 2010. Further, in the NSW jurisdiction these increases were awarded subject to the application of the Wage Fixing Principles 2003–2009 determined by the Industrial Commission of NSW. One of these principles is that at least 12 months must have elapsed since the rates in the award were increased before making another increase.

See the AFEI submission on the FWA website.

We will update you on the outcome of the review as soon as FWA hands its decision down.

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