2012 National Wage Case Decision

/2012 National Wage Case Decision

2012 National Wage Case Decision

In its third decision since taking over from the Australian Fair Pay Commission, the Minimum Wage Panel of Fair Work Australia today (1st June 2012) released its National Wage Case decision.

The decision provides that:
•    All Modern Award classification scales shall increase by 2.9%.
•    The federal minimum wage for award free employees shall be $606.40 per week or $15.96 per hour.  This constitutes an increase $17.10 per week or 0.45 cents per hour.
•    The increases shall apply from the first pay period on or after 1st July 2012.

The ACTU had sought an increase of $26 per week while major employer groups had sort an increase between $9 and $14 per week. The minimum wage panel rejected arguments that employees should be compensated through the minimum wage adjustment for cost increases associated with the carbon tax and that this year’s increase should be discounted for the carbon price compensation package.

Members who have Workplace Agreements in place will need to ensure that their agreement rates meet or exceed the new minimum award rates and if the agreement pay increases are linked to the panel’s decision, the pay rates will need to be adjusted within the Workplace Agreement accordingly.

The increases can be absorbed into any amounts now being paid over and above the relevant minimum rates.  However be aware the Fair Work Ombudsman makes it clear that over award pay-rates can NOT off-set other award entitlements (e.g. penalties or loadings) unless there is formal agreement in place.  Members must ensure that pay rates satisfy what would have been otherwise payable.  Rates for juniors, trainees and apprentices will also be adjusted, as usual, on a proportionate basis.

QTA Ltd through the services of our Employment Relations Manager, Travis Degen can provide first class assistance to any operator who seeks to formalise the employment conditions in their workplace in an Agreement certified by Fair Work Australia.

Should you have any queries in relation to the above or its application, please contact the ARTIO Branch in your State or Territory, details can be found here.

New Wage Summary Documents Now Available

To access a copy of the new wage summaries for the Road Transport & Distribution Award 2010, Road Transport (Long Distance Operations) Award 2010 or the Clerks – Private Sector Award 2010 and Waste Management Award 2010,  which come into effect on the first pay period on or after the 1st July 2012, please click on the relevant award below.