AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

Workplace Relations Act 1996

Clause 29 of Schedule 6 and s.553(1) applications to vary awards

Clause 42 of Schedule 6 and s.113 references to Full Bench

Wages and Allowances Review 2006

Various industries
JUSTICE GIUDICE, PRESIDENT
VICE PRESIDENT LAWLER
SENIOR DEPUTY PRESIDENT MARSH
SENIOR DEPUTY PRESIDENT KAUFMAN
COMMISSIONER GRAINGER	MELBOURNE, 5 DECEMBER 2006

STATEMENT

[1] In light of the issues which have arisen in these proceedings we think it is desirable to give our decision immediately and to publish our reasons for decision later.

[2] There are a large number of applications before us which seek to flow-on the wage-setting decision of the Australian Fair Pay Commission published on 26 October 2006. The applications seek to increase wage rates and allowances in transitional awards and allowances in pre-reform awards. We deal in this decision only with applications filed by Friday 1 December 2006.

[3] We have decided that minimum rates in transitional awards up to $700 per week should be increased by $27.40 per week and that minimum rates above $700 per week should be increased by $22 per week. The federal minimum wage in those awards should be increased by $27.40 per week. Allowances in transitional awards and pre-reform awards will be varied commensurately in accordance with the Furnishing and Glass Industries Allowances decision (1996, Print M9675). Any outstanding issues in relation to allowances will be dealt with by this Full Bench after the other aspects of the relevant orders have been finalised.

[4] As a general rule supported wage system provisions should be included in all transitional awards. The existing model clause should be used, unless there is justification for departure from it. As a general rule the standard provision in many awards that adopts the National Training Wage Award 2000 [Transitional] (AT790899CAN) should also be included in any transitional award where a traineeship can potentially be undertaken. Any unresolved objection to the inclusion of either or both clauses in any of the awards before us will be dealt with by this Full Bench after the other aspects of the relevant orders have been finalised.

[5] The orders necessary to give effect to this decision are to be settled in the Registry in conjunction with the parties with resort to the President.

[6] The operative date for the applications with which this decision deals will be the first pay period commencing on or after 1 December 2006.

[7] To the extent that the Commission’s Statement of Principles is inconsistent with this decision this decision will prevail. (The Statement of Principles is Attachment A to the Safety Net Review Wages June 2005 Decision; PR002005.) To avoid doubt, the so-called 12 month rule in Principle 8(b) shall have no application, we shall not require unions to give a commitment to absorption of the kind referred to in Principle 8(d) and there will be no requirement for awards to include a clause in the form provided for in Principle 8(e). It is clear that the variations will only have effect in relation to minimum award rates. Principle 12 Economic Incapacity will continue to be available.

[8] Applications filed after 1 December which seek a flow-on of the AFPC decision of 26 October 2006 shall be dealt with in the normal manner through the Panel system. In those cases the orders should operate prospectively.

[9] We shall publish our reasons for decision as soon as practicable.

BY THE COMMISSION:

PRESIDENT

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