2022 Extract of Increased Wages Decision of 15 June 2022
This is an extract of parts of the Summary decision. the Full Summary of the Decision and the Full Decision are on the title page of our Website under Updates
Taking all the relevant considerations into account led the Panel to award an increase of
$40 to the NMW, which amounts to an increase of 5.2 per cent. The NMW will be $812.60 per week or $21.38 per hour. The Panel observed that this level of increase will protect the real value of the wages of the lowest-paid workers.
The proposed NMW and the Panel’s assessment of all the relevant considerations also led the Panel to increase modern award minimum wages.
The Panel decided to provide a proportionately higher increase to low-paid employees noting that the present circumstances warranted an approach which affords a greater level of support to the low paid while seeking to constrain inflationary pressures.
The Panel decided to increase modern award minimum wages by 4.6 per cent subject to a minimum increase for adult award classifications of $40 per week. The $40 per week increase is based on a 38-hour week for a full-time employee. In effect, modern award minimum wage rates above $869.60 per week will receive a 4.6 per cent adjustment, wage rates below $869.60 per week will be adjusted by $40 per week.
In most modern awards the effect of the Panel’s decision will be that the 4.6 per cent adjustment will cut in around the C10, or trade level, and the flat $40 increase will apply to the lower classifications.
The Panel accepted that the approach adopted will result in some, albeit minor, compression in relativities, but decided that that consideration is to be balanced against the need to provide greater relief to low-paid workers in the context of rising cost of living pressures. The Panel concluded that given the current strength of the labour market the increases it had decided to make will not have a significant adverse effect on ‘the performance and competitiveness of the national economy’.
In the Panel’s view awarding an increase in all modern award minimum wages of the magnitude proposed by Australian Catholic Council for Employment Relations (6.5 per cent)8 and the ACTU (5.5 per cent), in the present economic circumstances, would pose a real risk of significant adverse effects to the national economy.
The Panel acknowledged that the increases determined will mean a real wage cut for some award-reliant employees but noted that this is an issue that can be addressed in subsequent Reviews.
In respect of the timing of these increases, the Act provides that, absent exceptional circumstances, variations to a NMW order and modern award minimum wages arising from a Review are to operate from 1 July in the financial year following the Review.
The Panel was satisfied that exceptional circumstances exist such as to warrant a delayed operative date for modern awards in the aviation, tourism and hospitality sectors. The variation determinations in respect of the following awards will operate from 1 October 2022:
- Aircraft Cabin Crew Award 2020
- Airline Operations – Ground Staff Award 2020
- Air Pilots Award 2020
- Airport Employees Award 2020
- Airservices Australia Enterprise Award 2016
- Alpine Resorts Award 2020
- Hospitality Industry (General) Award 2020
- Marine Tourism and Charter Vessels Award 2020
- Registered and Licensed Clubs Award 2020
- Restaurant Industry Award
In respect of the remaining modern awards the Panel was not persuaded that there are exceptional circumstances such as to warrant a delayed operative date in the variation determinations arising from this Review. Increases in these awards will operate from 1 July 2022.
The Panel acknowledged that an operative date of 1 July 2022 will mean that some businesses covered by these modern awards will face 2 minimum wage increases within a 12-month period; but noted that those businesses have also had the benefit of the delayed operative date arising from last year’s decision.
Draft variation determinations will be published next week. Interested parties will be required to submit any corrections or amendments by no later than 5pm on Friday 24 June 2022
This is an extract of parts of the Summary decision. the Full Summary of the Decision and the Full Decision are on the title page of our Website under Updates Taking all the relevant considerations into account led the Panel to award an increase of $40 to the NMW, which amounts to an increase […]