Employers and unions have called on Fair Work Australia to examine the impact of minimum wage increases on enterprise bargaining as part of its annual wage review.
The Australian Chamber of Commerce and Industry (ACCI), Workplace Research Centre (WRC), Australian Council of Trade Unions (ACTU) and Australian Manufacturing Workers Union (AMWU) all called for an investigation into the relationship between minimum wages and the incentive to bargain. The calls came in their responses before the July 31 deadline on research proposals for consideration by the minimum wage review panel.
ACCI said the study should not be limited to award-reliant sectors of the economy and should include specific details of the firms studied. The ACTU said the gap between award rates of pay and bargained rates of pay for work covered by modern awards needed to be identified. ACCI wants to see research on the specific issue of labour on-costs as a result of minimum wage increase. It requested quantitative economic modelling on the impact of minimum wage adjustments on factors including award-reliant employers, firm size and firm location. The AMWU’s submission requests included research into the composition of the award-reliant workforce, the operation of individual flexibility arrangements and the impact of percentage wage increases. The WRC wants to see research into the impact of annual wage reviews on wage movements across industries and on the demand and supply dynamics for apprentices.
Source: Thomson Reuters Workforce news, 6 August 2010. For the full article, sign up for a FREE TWO-WEEK TRIAL of Workforce and other Thomson Reuters premium news services. Click here to sign up.
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