QHA_May_sm_for web

EMPLOYMENT RELATIONS with Lyndsay Balch
DEBATE OVER THE ANNUAL WAGE REVIEW
QHA REVIEW | 50
AS TASKED BY THE FAIR WORK ACT 2009 (‘THE
ACT’), THE FAIR WORK COMMISSION (‘FWC’) IS
CURRENTLY UNDERTAKING ITS ANNUAL REVIEW
OF MINIMUM WAGES FOR BOTH AWARD FREE
EMPLOYEES AND THOSE COVERED BY A MODERN
AWARD SUCH AS THE HOSPITALITY INDUSTRY
(GENERAL) AWARD 2010 (‘THE HIGA’).
As with previous years, the wage review involves a
panel consisted of experts in workplace relations,
economics, business and social policy considering
submissions from a range of interested parties against
the minimum wage and modern award objectives
contained in Part 2-6 of the Act.
Employer interest groups have cited inconsistencies
in economic growth across regions and industries,
coupled with the fact that the majority of minimum
wage earners are employed by small businesses
in asserting that any rise in excess of 2% would be
counter-productive. The Australian Hotels Association
(AHA) offered its support for a modest 1.9% increase,
as recommended by the Australian Chamber of
Commerce and Industry (ACCI). Peak retail bodies
including The National Retailers’ Association attempted
to reason away any increase at all on the basis of the
growing wages bill associated with the introduction
of casual overtime payments (which were similarly
inserted in the HIGA from 1 January this year).
Despite this rhetoric, strong counter-arguments have
been put to the FWC in support of “progress toward
a living wage” as touted in the Australian Council of
Trade Unions’ (ACTU) submission for a 7.2% increase.
The Queensland Government and its federal labour
counterparts echo the ACTU in calling for a rise in
excess of last year’s 3.3% increase on the basis that:
• Data indicates the profit margins for businesses
of all sizes have grown, suggesting a generous
increase is affordable even for small businesses
• Disparity between the minimum and median wage
is at an all-time high
• Local and international evidence demonstrates that
increases can be sustained without costing jobs
and FWC assertions that concerns to the contrary
had formed an ‘overly cautious’ approach to
previous decisions.
• Low wage growth Australia has been identified
by the Reserve Bank as a contributor to lagging
economic growth
Final consultations are expected to take place mid-
May and as per previous years, a decision is likely to
be announced in mid-June, with the date of effect of
any increase granted to be from the first full pay period
on or after 1 July 2018. The QHA will keep members
informed of the FWC’s decision.