AHA|SA MEMBER INFORMATION
Annual Wage Review 2020-21 OWEN WEBB - AHA|SA WORKPLACE RELATIONS MANAGER
On 16 June 2021, the Fair Work Commission Annual Wage Review Panel (Panel) handed down their decision in the 2020-21 Annual Wage Review. The Panel determined that it was appropriate to increase the National Minimum Wage, awarding an increase to the National Minimum Wage and all modern award minimum wages of 2.5%. However, the Panel determined that there were exceptional circumstances justifying a delay in the operative date of the increase for a number of awards, including awards in the accommodation, food services, aviation, tourism and retail sectors. SUBMISSIONS The Panel as part of the Annual Wage Review process received a number of submissions from various parties including state and federal government, unions and employer associations. The Australian Council of Trade Unions (ACTU) proposed an increase of 3.5% to all minimum award wages, whilst the Australian Chamber of Commerce and Industry and Australian Industry Group proposed an increase of 1.1%. The Panel took into consideration economic data from a range of sources including the Reserve Bank of Australia’s February and May 2021 Statements on Monetary Policy and the Australian Government’s 2021-22 Budget.
There was a general consensus amongst the various parties’ submissions, that the Australian economy was performing above expectations and that Australia was experiencing a strong economic recovery. The Panel stated at paragraph 11 of their summary of decision that: “The Australian economy has recovered to a greater extent and more quickly than anticipated.” INCREASE IN MODERN AWARD WAGES The Panel were not swayed to increase modern award wages by the amount proposed by the ACTU, stating that: “… awarding an increase of the magnitude proposed by the Australian Catholic Council for Employment Relations (and the ACTU) in the present economic circumstances would pose a real risk of disemployment and of adversely affecting the employment opportunities of low-skilled and young workers.”1 The Panel also acknowledge however that awarding an increase that was less than the increases in prices and living costs would: “ … amount to a real wage cut. Such an outcome would mean that many award-reliant employees, particularly low-paid employees, would be less able to meet their needs. For some households such an outcome would lead to further disadvantage and may place them at greater risk of moving into poverty.”2
1 Fair Work Commission - Summary of Decision Annual Wage Review 2020-21, para [21] 2 Fair Work Commission - Summary of Decision Annual Wage Review 2020-21, para [22]
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