Fair Work Commission Orders 3.75% Increase in Award Rates and National Minimum Wage

On 3 June 2024, the Fair Work Commission (FWC) delivered a significant decision, approving a 3.75% increase in all award rates and the national minimum wage (NMW). This decision, while notable for its impact on workers across Australia, did not fully satisfy the Australian Council of Trade Unions (ACTU), which had pushed for an additional 4% rise for employees in highly-feminised industries.

Fair Work Commission Orders 3.75% Increase in Award Rates and National Minimum Wage

Key Outcomes of the Decision

The new decision raises the NMW from $882.80 to $915.90 per week, translating to an increase from $23.23 to $24.10 per hour. FWC President and panel head Adam Hatcher emphasised that the cost of living pressures were a primary consideration in this deliberation. The panel also factored in the Stage 3 tax cuts and various Federal Budget cost-of-living measures when making their decision.

Addressing Gender Pay Equity

In an important commitment to gender equality, Justice Hatcher announced that the Commission would initiate proceedings to address gender undervaluation in several highly-feminised awards. These awards cover sectors such as early childhood education, disability care, social and community services, dental assistants, medical technicians, psychologists, and pharmacists. This examination and subsequent actions are to be completed within the next 12 months.

The ACTU had originally sought a 9% increase for workers in highly-feminised industries, combining the 5% it requested for all award rates with an additional 4%. The FWC's decision to spread this examination over the next year reflects the complexity and importance of ensuring a fair and thorough process.

Broader Implications and Future Steps

Last year, Justice Hatcher highlighted the need to address gender-based pay equity in future cases. The latest ruling follows the Albanese Government's submission urging the panel to ensure that the real wages of low-paid workers do not fall behind. This marks the third consecutive year that the government has advocated for this outcome. The panel's decision surpasses the December quarter CPI of 4.1% and the March quarter figure of 3.6%, demonstrating a commitment to maintaining the purchasing power of low-paid workers.

Employer groups had varied responses, with the Australian Chamber of Commerce and Industry (ACCI) supporting a 2% increase and the Australian Industry Group (AiG) advocating for a 2.8% rise. Ultimately, the panel, comprising Justice Hatcher, Vice President Ingrid Asbury, Deputy Presidents Bernadette O'Neill and Peter Hampton, and lay members Adele Labine-Romain, Marian Baird, and Mark Cully, reached a unanimous decision.

Looking Ahead

The FWC's decision not only secures an above-inflation wage increase but also sets the stage for a comprehensive review of gender-based pay disparities. This is a crucial step towards achieving greater equity in the workplace, particularly for those in female-dominated industries. As the FWC continues its work on gender pay equity, it is imperative for all stakeholders to engage constructively to ensure fair outcomes for all workers.

At 1800ADVOCATES™, 1800NOWINNOFEE™, and MYUNION™, we remain committed to supporting workers' rights and advocating for fair treatment and equitable pay across all industries. This latest FWC decision is a step in the right direction, and we will continue to monitor and contribute to ongoing discussions and proceedings aimed at addressing wage disparities and enhancing workplace fairness.

For more information on how these changes might affect you or for assistance with employment-related matters, please contact 1800ADVOCATES™, 1800NOWINNOFEE™, or MYUNION™.

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Sources:

Annual Wage Review 2023-24 [2024] FWCFB 3500 (3 June 2024)