2020-21 Annual Wage Review Progress Update

Whilst a number of Modern Awards only just received the 2019-20 Annual Wage Review increase of 1.75% in February, the 2020-21 Annual Wage Review has been proceeding before the Fair Work Commission for months.

Although the Commission must hand down a decision before 30 June, with final reply submissions not closing until 8 June, it can be expected this year’s decision will fall later in the month, as was the case in 2020, when the decision was handed down on 19 June, owing to the significant disruptions caused by the COVID-19 pandemic.

Employer groups have generally advocated for either a wage freeze; awarding of a minimal increase which does not exceed CPI (currently 1.1% over the twelve months to the March 2021 quarter), and/or for any increase to be delayed in its application, following the precedent set by last year’s wage decision (which saw a majority of Modern Awards not receive the 1.75% increase until 1 November 2020 and a small number delayed as late as 1 February 2021). Employers have also encouraged the minimum wage panel to discount any minimum rate increase to take into account the super guarantee rise due in July (see our previous article), noting this has occurred with previous super boosts in the FWC’s 2012-13 and 2013-14 wage rulings.

In stark contrast, Australian Catholic Council for Employment Relations – employing over 200,000 staff nationally – is seeking a 4% wage increase suggesting this would allow workers to support themselves and their families while affording a “dignified standard of living”.

Unions are pressing for a 3.5% increase to award rates of pay, describing last year’s 1.75% increase as “very low”, claiming the delay in flowing the increase on to most awards exacerbated the minimal nature of the increase.  If achieved, the Union claim would equate to an extra $26.38 a week (69 cents an hour) for a full-time worker on the National Minimum Wage, bringing it to $780.18 ($20.53 an hour) from the current $753.80 ($19.84 an hour).

ES Subscribers will be notified by email when the 2020-21 Annual Wage Review decision is handed down in June.