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Articles
8th July 2008New Minimum Wage Increase announced The Australian Fair Pay Commission (AFPC) has today announced an increase of $21.66 per week to the Federal Minimum Wage (FMW). The AFPC’s decision increases the FMW to $543.78 per week ($14.31 per hour) up from $522.12 per week ($13.74 per hour). This is a 4.15 per cent increase and will come into effect from the first pay period on or after 1 October 2008, 12 months after the previous annualised increase of 2.4 per cent. The Government believes the increase is appropriate to the current economic conditions. The decision to increase the federal minimum wages will directly benefit around 1.3 million Australians, who are in the Federal system and rely on minimum wages. Today’s decision helps these families keep pace with cost of living increases. The Rudd Government’s tax cuts provide an extra benefit to assist with cost of living pressures. This is acknowledged in the AFPC’s decision, which states that “this increase of $21.66 per week, together with relevant tax and transfer changes, will provide low income households with real increases in disposable income” (p. 8). An employee earning the FMW will receive a tax cut of $8.65 per week in addition to the wage increase of $21.66. A federal award reliant employee earning $676.42 a week will receive a weekly pay increase of $21.66 and a tax cut of $20.19 a week. The AFPC has estimated that the combined effect of the increase in the FMW and the Government’s tax and transfer payment changes mean a single worker earning the FMW, will see their disposable income increase by 5.7 per cent and for a couple both earning the FMW with two children, their disposable income will increase by 5.5 per cent. In its submissions to the AFPC, the Government submitted that the AFPC should grant an increase in minimum wages, so that those who rely on minimum wages share in the strong growth in prosperity in Australia. There is no implication for wage inflation forecasts because the AFPC’s minimum wage decision is consistent with the assumptions on wage growth already factored into Budget forecasts. In addition, the AFPC’s assessment of the impact of the determination on inflation was measured against a scenario where there was no increase in minimum wages. The Government also submitted that any increase to the FMW be balanced against any potential impact on inflation, employment, the provision of a safety net and the financial needs of low paid employees. The Government has committed to retaining the AFPC until 2010. From that date, minimum wages will be set by the Government’s new industrial umpire, Fair Work Australia.
16th June 2008The Prime Minister, Kevin Rudd and Minister for Employment and Workplace Relations Julia Gillard, today released the new National Employment Standards (NES). The NES are a key element of the Rudd Government’s new modern workplace relations system and will come into effect on 1 January 2010. The NES will ensure that all employees are protected by a strong safety net of fair minimum conditions that can’t be stripped away. The NES will apply to all employees in the Federal system regardless of industry, occupation or income. The NES were developed following extensive consultation and consideration of submissions to the exposure draft which was released on 14 February 2008. 129 submissions were received from a wide range of stakeholders, including: employee and employer groups; businesses; community organisations and individuals. The Rudd Government’s consultative approach is in stark contrast to that of the previous Liberal government. The NES will be simpler for Australian employers. The Work Choices standard runs to 149 pages of complexity, provides only five minimum conditions and many of the protections provided are sub-standard. The NES, in contrast provides 10 vital protections in just 50 pages. The NES provide employers with the flexibility and simplicity they need while also ensuring employees’ key entitlements are protected. The NES are:
The Government will shortly issue a revised Award Modernisation Request to the Australian Industrial Relations Commission (AIRC) attaching the NES to assist in its task of modernising awards. The NES and award modernisation are integral components of the Government’s commitment to deliver a modern workplace relations system to benefit all Australians. Legislation will be introduced into Parliament later this year to give effect to the Government’s commitment. The legislation will include other aspects of workplace relations relating to the NES including compliance, interaction with agreement making and future reviews. The National Employment Standards in more detail can be found at www.workplace.gov.au For the complete pdf booklet download here
28th March 2008The Minister for Employment and Workplace Relations today proclaimed with the Governor General the Workplace Relations Amendment (Transition to Forward with Fairness) Act 2008. The proclamation of the Act is the beginning of the end of the previous Liberal Government's extreme Work Choices laws which were introduced two years ago today. The legislation reflects the Rudd Government's election commitments, which were set out in Forward with Fairness and the Forward with Fairness Implementation Policy Plan. The key previsions of the Transition to Forward with Fairness Act:
Following the nominal expiry date of an AWA made under Work Choices, it may be terminated unilaterally by either the employer or employee on 90 days’ notice. The employee would then be entitled to the benefit of the whole of an applicable collective agreement or award in the workplace. As requested by employer and employee representatives, the Act will allow parties to retain pre-Work Choices certified agreements and to extend or vary those agreements in limited circumstances to avoid a odouble transition prior to the commencement of the Government’s new workplace relations system in 2010. The Government will introduce its substantive workplace relations reforms into Parliament later this year after extensive consultation, to ensure that the Rudd Government's new workplace relations system is fair, flexible and productive.
14th February 2008 WORKPLACE RELATIONS AMENDMENT (TRANSITION TO FORWARD WITH FAIRNESS) BILL 2008
To see the rest of this article please go here or you can download a pdf file here.
There are a number of useful articles on the internet that explain the changes that the Fair Work Australia Policy will have upon workplaces, employers and employees.
Business as usual but big workplace changes are on their way by NSW Business Chamber
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