QHA_August-2021-Digital

EMPLOYMENT RELATIONS with Wesley Davey
2020/2021 ANNUAL WAGE REVIEW DECISION
QHA REVIEW | 42
On 16 June 2021 the Fair Work Commission’s
Expert Panel (‘Panel’) handed down its Annual Wage
Review Decision (‘Decision’) for 2020-21.
The Decision results in a wage increase of 2.5% to
modern award wages and to the National Minimum
Wage (‘NMW’).
As it did in the 2019/2020 Annual Wage Review, The
Fair Work Commission (‘FWC’) has determined that
the date the increase applies from will be delayed for
some modern awards due to the ongoing economic
impact of the COVID-19 pandemic. This includes
the Hospitality Industry (General) Award 2020, which
has a delayed operative date of first full pay period
commencing on or after 1 November 2021.
Why the increase?
The FWC is required to conduct and complete an
Annual Wage Review (‘AWR’) in each financial year
in accordance with section 285 of the Fair Work Act
2009 (Cth) (‘FW Act’).
In conducting the review, the Panel takes into
account data (including economic and labour market
data), research and even the federal budget. The
Panel also considers the submissions of the federal
government and state governments as well as other
stakeholders such as employer or employee interest
groups. The FWC must also have regard for certain
statutory considerations in sections 134 and 284
of the FW Act, which set objectives for providing a
safety net of minimum wages and other employment
terms and conditions.
The Panel determined, based on the information
before it and the statutory considerations, that an
increase was warranted.
In awarding the increase of 2.5% the Panel observed
in the Decision that the economy was in a quicker
than anticipated recovery that has exceeded
expectations. The Panel also observed that the
improvement in circumstances since the 2019-2020
AWR warranted a larger increase than the 1.75%
awarded in the 2019-2020 AWR.
Why the delay for certain awards?
Increases to minimum rates of pay arising from each
year’s AWR ordinarily take effect from the start of the
first full pay period on or after 1 July.
The 2019/2020 AWR resulted in delayed increases
for certain awards due to exceptional circumstances
arising from the impacts of COVID -19. As part of
the 2020-2021 AWR, the FWC invited interested
parties to make submissions in relation to the timing
of any increase.
The Panel determined that exceptional
circumstances existed to warrant a later operative
for certain modern awards across the aviation and
tourism, accommodation and food services, arts and
recreation and retail and trade sectors. In deciding
that exceptional circumstances existed the Panel
considered the recovery of these sectors (or parts
of these sectors) and the likely effect of further
lockdowns or restrictions as a result of COVID-19
outbreaks.
The 2.5% increase has a delayed operative date
and will take effect from the first full pay period
commencing on or after 1 November 2021 for the
following awards only, this includes the Hospitality
Industry (General) Award 2020:
• Air Pilots Award 2020
• Aircraft Cabin Crew Award 2020
• Airline Operations – Ground Staff Award 2020
• Airport Employees Award 2020
• Airservices Australia Enterprise Award 2016
• Alpine Resorts Award 2020
• Amusement, Events and Recreation Award 2020
• Dry Cleaning and Laundry Industry Award 2020
• Fitness Industry Award 2020
• Hair and Beauty Industry Award 2010
• Hospitality Industry (General) Award 2020
• Live Performance Award 2020
• Mannequins and Models Award 2020