2004 WAIRC 11661

100423027

WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

PARTIESON THE COMMISSION'S OWN MOTION

HON Minister for Consumer and Employment Protection, AUSTRALIAN MINES & METALS ASSOCIATION INC, TRADES AND LABOR COUNCIL OF WESTERN AUSTRALIA, CHAMBER OF COMMERCE & INDUSTRY OF WESTERN AUSTRALIA

CORAMCOMMISSION IN COURT SESSION

CHIEF COMMISSIONER W S COLEMAN

SENIOR COMMISSIONER A R BEECH

COMMISSIONER J H SMITH

DATETHURSDAY, 3 JUNE 2004

FILE NOAPPLICATION 570 OF 2004

CITATION NO.2004 WAIRC 11661

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ResultState Wage Case Increase – Principles, Safety Net Adjustment and Minimum Adult Award Wage

Representation

RespondentMr R McFerran on behalf of the WA Fruit Growers’ Association

Ms S Howard on behalf of the Western Australian Hotels and Hospitality Association (Incorporated) Union of Employers

Mr P Wilding and Ms C Purcell on behalf of the Minister for Consumer and Employment Protection

Ms C Ozich (of counsel) on behalf of the Trades and Labour Council

Mr J Flood on behalf of the Australian Mines and Metals Association Inc

Mr G Bull (of counsel) and with him Mr G Blyth on behalf of the Chamber of Commerce and Industry of Western Australia

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General Order and Orders

THE COMMISSION IN COURT SESSION constituted for the purpose of Section 51 of the Industrial Relations Act, 1979 (“the Act”) and having concluded that the “decision of the Australian Industrial Relations Commission in the May 2004 Safety Net Review – Wages” (Print PR002004) is a National Wage Decision under section 51(1) of the Act and being satisfied that there are no good reasons not to give effect to the National Wage Decision,

AND HAVING reviewed minimum weekly rates under section 51D of the Act in accordance with the requirements of section 51E(1) of the Act;

NOW THEREFORE the Commission in Court Session pursuant to section 51 of the Act hereby orders:

General Order

1.THAT pursuant to section 27(1)(j) of the Act, the Minister for Consumer and Employment Protection, the Trades and Labor Council, the Chamber of Commerce and Industry of Western Australia Inc. and the Australian Mines and Metals Association Inc. be made parties to this matter (Matter No. 570 of 2004).

2.THAT pursuant to section 51 of the Actthe General Order which issued in Matter No. 569 of 2003 with respect to matters which gave effect to the National Wage Case of 2003 is rescinded with effect on and from 4th June 2004.

3.THAT the Statement of Principles under the General Order in Matter No. 569 of 2003 be replaced by the Statement of Principles – June 2004 (in the schedule attached hereto).

4.THAT rates of pay of adults in the awards set out in the schedules published by the Commission, be increased under this General Order by the arbitrated safety net adjustment of $19.00 per week with effect on and from 4th June 2004 AND that this increase shall be subject to absorption in the same terms as previous State Wage decisions; and

5.THAT any increase to wages result from the General Order unless provided for elsewhere shall be calculated on the basis that:

(a)Where the award prescribes an adult fortnightly rate of pay the fortnightly rate of pay be increased by $38.00 per fortnight with effect on and from the
4th June 2004.

(b)Where the award prescribes an annual rate of pay, the annual rate of pay is increased by $991.00 per annumwith effect on and from 4thJune 2004.

(c)Where the award prescribes an adult hourly rate of pay, the hourly rate of pay is increased by the amount of $19.00 per week divided by the number of ordinary hours of work prescribed by the relevant award for a full time employee. Where applicable, casual loadings are to be calculated based on the hourly rate.

6.THAT where an award rate other than an adult rate is determined by reference to a percentage of the adult rate or some other formula those award rates shall be varied on the basis of that percentage or formula to take into account the application of the arbitrated safety net adjustment of $19.00 per week to the adult award wage.

7.THAT increases under State Wage Case Principles prior to June 2004, except those resulting from enterprise agreements, are not to be used to offset the arbitrated safety net adjustment of $19.00 per week.

8.THAT allowances which relate to work or conditions which have not changed and service increments may be varied in accordance with the Statement of Principles – June 2004 by an application to amend the award.

9.(a)THAT all awards which contain Clause 1B. – Minimum Adult Award Wage shall be varied to delete the existing provision and in lieu thereof insert the following:

1B. - MINIMUM ADULT AWARD WAGE

(1)No adult employee shall be paid less than the Minimum Adult Award Wage unless otherwise provided by this clause.

(2)The Minimum Adult Award Wage for full time adult employees is $467.40per week payable on and from 4th June 2004.

(3)The Minimum Adult Award Wage of $467.40 per week is deemed to include all arbitrated safety net adjustments from State Wage Case decisions.

(4)Unless otherwise provided in this clause adults employed as casuals, part time employees or pieceworkers or employees who are remunerated wholly on the basis of payment by result shall not be paid less than pro rata the Minimum Adult Award Wage according to the hours worked.

(5)Juniors shall be paid no less than the wage determined by applying the percentage prescribed in the junior rates provision in this award to the Minimum Adult Award Wage of $467.40 per week.

(6)(a)The Minimum Adult Award Wage shall not apply to apprentices, employees engaged on traineeships or Jobskill placements or employed under the Commonwealth Government Supported Wage System or to other categories of employees who by prescription are paid less than the minimum award rate.

(b)Liberty to apply is reserved in relation to any special categories of employees not included here or otherwise in relation to the application of the Minimum Adult Award Wage.

(7)Subject to this clause the Minimum Adult Award Wage shall -

(a)apply to all work in ordinary hours.

(b)apply to the calculation of overtime and all other penalty rates, superannuation, payments during any period of paid leave and for all purposes of this award.

(8)Minimum Adult Award Wage

The rates of pay in this award include the minimum weekly wage for adult employees payable under the 2004 State Wage Case Decision. Any increase arising from the insertion of the minimumadult award wagewill be offset against any equivalent amount in rates of pay receivedby employees whose wages and conditions of employment are regulated by this award which are above the wage rates prescribed inthe award. Such above award payments include wages payablepursuant to enterprise agreements, consent awards or award variations to give effect to enterprise agreements and over award arrangements. Absorption which is contrary to the terms of an agreement is not required.

Increases under previous State Wage Case Principles or under the current Statement of Principles, excepting those resulting from enterprise agreements, are not to be used to offset theminimumadult award wage.

(9)Adult Apprentices

(a)Notwithstanding the provisions of this clause, an apprentice, 21 years of age or over,shall not be paid less than $406.70 per week.

(b)The rate paid in paragraph (a) above is payable on superannuation and during any period of paid leave prescribed by this Award.

(c)Where in thisaward an additional rate is expressed as a percentage, fractionormultiple of the ordinary rate of pay, it shall be calculated upon the rate prescribed in this award for the actual year of apprenticeship.

(d)Nothing in this clause shall operate to reduce the rate of pay fixed by this award for an adult apprentice in force immediately prior to 5th June 2003.

(b)THAT in awards set out hereunder which contain in another clause text identical to that in clause 1B (prior to the variation under 9(a) above) shall be varied by deleting that clause and inserting in lieu thereof in the relevant clause the following:

MINIMUM ADULT AWARD WAGE

(1)No adult employee shall be paid less than the Minimum Adult Award Wage unless otherwise provided by this clause.

(2)The Minimum Adult Award Wage for full time adult employees is $467.40 per week payable on and from 4th June 2004.

(3)The Minimum Adult Award Wage of $467.40 per week is deemed to include all arbitrated safety net adjustments from State Wage Case decisions.

(4)Unless otherwise provided in this clause adults employed as casuals, part time employees or pieceworkers or employees who are remunerated wholly on the basis of payment by result shall not be paid less than pro rata the Minimum Adult Award Wage according to the hours worked.

(5)Juniors shall be paid no less than the wage determined by applying the percentage prescribed in the junior rates provision in this award to the Minimum Adult Award Wage of $467.40 per week.

(6)(a)The Minimum Adult Award Wage shall not apply to apprentices, employees engaged on traineeships or Jobskill placements or employed under the Commonwealth Government Supported Wage System or to other categories of employees who by prescription are paid less than the minimum award rate.

(b)Liberty to apply is reserved in relation to any special categories of employees not included here or otherwise in relation to the application of the Minimum Adult Award Wage.

(7)Subject to this clause the Minimum Adult Award Wage shall -

(a)apply to all work in ordinary hours.

(b)apply to the calculation of overtime and all other penalty rates, superannuation, payments during any period of paidleave and for all purposes of this award.

(8)Minimum Adult Award Wage

The rates of pay in this award include the minimum weekly wage for adult employees payable under the 2004 State Wage Case Decision. Any increase arising from the insertion of the minimum adult award wagewill be offset against any equivalent amount in rates of pay receivedby employees whose wages and conditions of employment are regulated by this award which are above the wage rates prescribed in the award. Such above award payments include wages payablepursuant to enterprise agreements, consent awards or award variations to give effect to enterprise agreements and over award arrangements. Absorption which is contrary to the terms of an agreement is not required.

Increases under previous State Wage Case Principles or under the current Statement of Principles, excepting those resulting from enterprise agreements, are not to be used to offset theminimumadult award wage.

(9)Adult Apprentices

(a)Notwithstanding the provisions of this clause, an apprentice, 21 years of age or over,shall not be paid less than $406.70 per week.

(b)The rate paid in paragraph (a) above is payable on superannuation and during any period of paid leave prescribed by this Award.

(c)Where inthisaward an additional rate is expressed as a percentage, fraction,ormultiple of the ordinary rate of pay, it shall be calculated upon the rate prescribed in this award for the actual year of apprenticeship.

(d)Nothing in this clause shall operate to reduce the rate of pay fixed by this award for an adult apprentice in force immediately prior to 5th June 2003.

Awards / Award No / Clause
Air Conditioning and Refrigeration Industry (Construction and Servicing) Award / R 10/1979 / 29A
Animal Welfare Industry Award / 8/1968 / 19A
Asbestos Jointings Industry Award 1967 / 7/1967 / 24A
B.P. Refinery (Kwinana) Construction, Mining and Energy Workers Union Award 1980 - The / A 2/1981 / 36
Bespoke Bootmakers' and Repairers' Award No. 4 of 1946 / 4/1946 / 8A
Bradken Bassendean (WA) Way Forward Enterprise Award 2003 / A9/2003 / 4.1
Building Trades (Goldmining Industry) Award / 29/1965, 32/1965, 4/1966 / 9A
Building Trades Award 1968 / 31/1966 / 10A
Burswood International Resort Casino Employees Award 2002 / A 4/2002 / 6
Burswood Catering and Entertainment Pty Ltd Employees Award 2001 / A 4/2001 / 6
Case and Box Makers Award, 1952 / 48/1951 / 6A
Cement Workers' Award, 1975 / 10/1967 / 11A
Clothing Trades Award / 16/1972 / 19
Club Workers' Award, 1976 / 12/1976 / 21A
Egg Processing Award 1978 / R42/1978 / 1A
Engineering and Engine Drivers' (Nickel Smelting) Award, 1973 / 4/1973 / 23
Foremen (Building Trades) Award 1991 / A 5/1987 / 6
Fruit Growing and Fruit Packing Industry Award - The / R 17/1979 / 24A
Gaol Officers' Award 1998 / 12/1968 / 2B
Grain Handling Salaried Officers’ Consolidated Award 1989 / 37/1965 / 1A
Hospital Salaried Officers (Australian Red Cross Blood Service, Western Australia) Award, 1978 / R 17/1974 / 2B
Hotel and Tavern Workers' Award, 1978 / R 31/1977 / 21A
Industrial Catering Workers' Award, 1977 / 29A/1974 / 22A
Marine Stores Award / 13/1958 / 6A
Mineral Sands Mining and Processing (Engineering and Building Trades) Award, 1977 / 6/1977 / 26A
Mineral Sands Mining and Processing Industry Award, 1981 / A 38/1981 / 28
Motel, Hostel, Service Flats and Boarding House Workers' Award, 1976 / 29/1974 / 21A
Nickel Mining and Processing Award, 1975 / 18/1975 / 38
Nickel Smelting (Western Mining Corporation Limited) Award,1972 / 18/1972 / 24
Optical Mechanics' Award, 1971 / 9/1970 / 24A
PrivateHospital Employees' Award, 1972 / 27/197 / 35
Radio and Television Employees' Award / R 3/1980 / 29A
Restaurant, Tearoom and Catering Workers' Award, 1979 / R 48/1978 / 21A
Saddlers and Leatherworkers' Award / 7/1962 / 9A
Saw Servicing Establishments Award No. 17 of 1977 / 17/1977 / 29
 Shearing Contractors Award of Western Australia / A2/2003 / 4.1
Sheet Metal Workers' Award No. 10 of 1973 / 10/1973 / 6A
Soft Furnishings Award / A 23/1982 / 7A
State Research Stations, Agricultural Schools and College Workers’ Award 1971 / 23/1971 / 27
Timber Yard Workers Award No. 11 of 1951 / 11/1951 / 30
Tin and Associated Minerals Mining and Processing Industry Award No.14 of 1971 / 14/1971 / 31
Watchmakers’ and Jewellers Award 1970 / 10/1970 / 8A
 Water Corporation (Staff) Award 2003 / PSAA1/2003 / 30

(c)THAT the awards set out hereunder which prescribe a minimum weekly wage for adult employees are varied by deleting that provision and inserting the text of the Adult Minimum Award Wage of this Order.

MINIMUM ADULT AWARD WAGE

(a)No adult employee shall be paid less than the Minimum Adult Award Wage unless otherwise provided by this clause.

(b)The Minimum Adult Award Wage for full time adult employees is $467.40 per week payable on and from 4thJune 2004.

(c)The Minimum Adult Award Wage of $467.40 per week is deemed to include all arbitrated safety net adjustments from State Wage Case decisions.

(d)Unless otherwise provided in this clause adults employed as casuals, part time employees or pieceworkers or employees who are remunerated wholly on the basis of payment by result shall not be paid less than pro rata the Minimum Adult Award Wage according to the hours worked.

(e)Juniors shall be paid no less than the wage determined by applying the percentage prescribed in the junior rates provision in this award to the Minimum Adult Award Wage of $467.40 per week.

(f)(i)The Minimum Adult Award Wage shall not apply to apprentices, employees engaged on traineeships or Jobskill placements or employed under the Commonwealth Government Supported Wage System or to other categories of employees who by prescription are paid less than the minimum award rate.

(ii)Liberty to apply is reserved in relation to any special categories of employees not included here or otherwise in relation to the application of the Minimum Adult Award Wage.

(g)Subject to this clause the Minimum Adult Award Wage shall -

(i)apply to all work in ordinary hours.

(ii)apply to the calculation of overtime and all other penalty rates,superannuation, payments during any period of paid leave and for all purposes of this award.

(h)Minimum Adult Award Wage

The rates of pay in this award include the minimum weekly wage for adult employees payable under the 2004 State Wage Case Decision. Any increase arising from the insertion of the minimum adult award wage will be offset against any equivalent amount in rates of pay received by employees whose wages and conditions of employment are regulated by this award which are above the wage rates prescribed in the award. Such above award payments include wages payable pursuant to enterprise agreements, consent awards or award variations to give effect to enterprise agreements and over award arrangements. Absorption which is contrary to the terms of an agreement is not required. Increases under previous State Wage Case Principles or under the current Statement of Principles, excepting those resulting from enterprise agreements, are not to be used to offset the minimum adult award wage.

(i)Adult Apprentices

(i)Notwithstanding the provisions of this clause, an apprentice, 21 years of age or over,shall not be paid less than $406.70 per week.

(ii)The rate paid at paragraph (i) above is payable on superannuation and during any period of paid leave prescribed by this Award.

(iii)Where in thisaward an additional rate is expressed as a percentage, fractionormultiple of the ordinary rate of pay, it shall be calculated upon the rate prescribed in this award for the actual year of the apprenticeship.

(iv)Nothing in this sub-clause shall operate to reduce the rate of pay fixed by thisAward for an adult apprentice in force immediately prior to 5thJune 2003.

Awards / Award No / Clause
 Argyle Diamonds Production Award 1996 / A7/1996 / 23(4)
AWU Gold (Mining and Processing) Award 1993 / A 1/1992 / 16(6)
Bag, Sack and Textile Award / 3/1960 / 25(4)
Bakers' (Country) Award No. 18 of 1977 / R 18/1977 / 8(6)
Dried Vine Fruits Industry Award, 1951 - The / 8/1951 / 22(3)
Earth Moving and Construction Award / 10/1963 / 27 - after Part 3
Electrical, Engineering and Building Trades (West Australian Newspapers Limited) Award, 1988 / A 17/1985 / First Schedule Cl. 8
Electronics Industry Award No. A22 of 1985 / A 22/1985 / Part II – Construction Work Cl 10(9) (also contains a standard ‘1B’ clause)
Engineering Trades (Government) Award, 1967 Award Nos. 29, 30 and 31 of 1961 and 3 of 1962 / 29/1961, 30/1961, 31/1961, 3/1962 / First Schedule Wages - Cl. 14
Fire Brigade Employees (Workshops) Award 1983 / A 6/1981 / 19(8)
Furniture Trades Industry Award / A 6/1984 / 8(6)
Gold Mining Engineering and Maintenance Award / 26/1947 / 5(8)
Golf Link and Bowling Green Employees' Award, 1993 / 16/1967 / 27(4)
Government Railways Locomotive Enginemen's Award 1973-1990 / 13/1973 / 14(14)
Government Water Supply, Sewerage and Drainage Employees Award 1981 / 2/1980 / 38(9)
Landscape Gardening Industry Award / R 18/1978 / 25(6)
Metal Trades (General) Award 1966 / 13/1965 / Part I - Cl. 31(6)
Part II - Cl. 10(8)
Metropolitan Health Service Engineering and Building Services Enterprise Award 1999 / A 1/1999 / Append A(6)
Minerals Production (Salt) Industry Award 1969 / 36/1968 / 26(4)
Pastrycooks' Award No. 24 of 1981 / 24/1981 / 10(4)
Plastic Manufacturing Award 1977 / 5/1977 / 22(7)
Quadriplegic Centre Award / A 1/1993 / 27 Part C (1)(e)
Quarry Workers' Award, 1969 / 13/1968 / Cl. 27(6)
Railway Employees' Award No. 18 of 1969 / 18/1969 / 44(8)
Sugar Refining Award - The / A 41/1982 / 7(14)
Timber Workers Award No. 36 of 1950 / 36/1950 / 52(9)
Vehicle Builders' Award 1971 / 9/1971 / 9(9)
Wineries Award 1969 / 31/1969 / 7(5)
Wire Manufacturing (Australian Wire Industries Pty. Ltd.) Award No.24 of 1970 / 24/1970 / 25(5)
Wundowie Foundry Award 1986 / A 8/1986 / 23(6)

10.THAT the General Order has no application to wages set out in clauses, schedules or appendices in the awards set out hereunder as these wage rates serve only to facilitate transitional or interim arrangements or the translation of wage rates to revised schedules. These clauses, schedules or appendices have no relevance to current rates of pay under the awards specified.