The Fair Work Commission’s Expert Panel yesterday handed down a 2.4% increase to the minimum wage for 2016.

On Tuesday 31 May, The Fair Work Commission (FWC) handed down it’s annual wage review decision to increase the national minimum wage (NMW) and Award base rates of pay by 2.4%. The increase will take effect from first full pay period on or after 1 July 2016. 

The new national minimum wage will be $672.70 per week or $17.70 per hour. The 2.4% increase is down from the 2.5% increase in 2014-2015 and 3% increase in 2013-2014, due to economic growth in the past financial year in Australia being slightly below trend.

The FWC, in handing down their decision, put particular emphasis on the gender pay gap in Australia. As females are statistically more likely to be on minimum rates, the increase would “particularly benefit women, who disproportionately receive low pay rates”.  There are 1.86 million employees in Australia who are reliant on the minimum wage.  The FWC noted that “All measures of inflation and wages growth are at historically low levels…and are expected to continue to be below average levels in the coming year or so.”

Base rates of pay in all Modern Awards (including the Electrical, Electronic and Communications Contracting Award 2010) will be subject to a 2.4% increase, however the FWC is yet to make a determination relating to allowances within the Awards.

What happens next?
Once the FWC has made a determination relating to award allowances in mid-June, NECA will issue replacement Wage Bulletins for the Electrical Electronic and Communications Award 2010 and the Clerks Private Sector Award 2010 to members as soon as possible. Stay tuned for the new wage bulletins in the next 2-3 weeks.

What do I need to do?
The increases will need to be applied from the first full pay period on or after 1 July 2016. For example, if you pay on a Monday-Sunday week, you will need to apply the increases on the week commencing Monday 4 July.

Even if you pay above-Award rates, you may be liable for the cost of award-related allowances and conditions such as daily travel allowances if you do not have a properly-formed written agreement in place, so it is essential that you understand your obligations under the Award.

Employers paying under an Enterprise Agreement need to ensure their rates remain above-Award at all times, which can at times be an issue for Apprentice rates, particularly Adult Apprentices.

Gordon Jervis, Industrial Relations Manager at NECA NSW and ACT, can assist members with any employee and pay related questions you may have. Email Gordon  or call the NECA NSW office on (02) 9744 1099 if you have any queries.

FEDERAL COURT DISMISSES ADVERSE ACTION CLAIM

In a decision Trevena v Theiss Pty Ltd [2016] FCA 468 dated 10 May 2016, Justice Tracey of the Federal Court dismissed a claim by Mr Trevena, a former employee of Theiss that unlawful adverse action had been taken against him when Theiss did not offer to continue his casual employment or offer him another role that he said had been promised to him.  Mr Trevena claimed that Theiss had breached the General Protections provisions of the Fair Work Act 2009 and, regarding the alleged broken promise,  the Competition and Consumer Act 2010.

Mr Trevena had been employed as a casual administration assistant on the Queensland Curtis Liquid Natural Gas Project.  His employment was due to end on completion of his role on the project.  On 27 September 2013, he reported an incident that occurred between him and another employee to his supervisor.  Theiss’ Human Resources department investigated Mr Trevena’s complaint.  In the months following the incident,  Mr Trevena was informed that he was no longer required on the Project and that no permanent position would be offered to him.

Justice Tracey accepted that Mr Trevena was never offered a permanent role by Theiss.  He also accepted that the complaint had actually been made by Mr Trevena’s brother who also worked on the project.   The complaint concerned an altercation between Mr Trevena and a supervisor on the site.  Mr Trevna maintained that he had been coerced by another more senior manager to not exercise a workplace right to pursue his grievance.  Justice Tracey did not accept that Mr Trevena had been coerced.   His Honour was also satisfied that Mr Trevena did not exercise a workplace right to complain about the findings of the investigation which found no substance to the alleged mistreatment by his supervisor.  He expressed disappointment with the findings but did not exercise a workplace right to make a complaint about his employment to his employer.

This case demonstrates that the factual basis of any allegation of adverse action must be examined carefully.  Adverse action (such as dismissal) is unlawful if it is taken for a reason proscribed by the Fair Work Act or for a number of reasons including a reason proscribed by the Act.  

If you require further information, please contact Gordon Jervis on 02 9744 1099 or email gordon.jervis@neca.asn.au