TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s35 application for increase in Tasmanian minimum wage
s23(1) application for award or variation of award

Tasmanian Trades and Labor Council
(T14223 of 2014)

PUBLIC SECTOR AWARDS

President TJ Abey
Deputy President NM Wells
Commissioner T LEE 	HOBART, 21 July 2014	

Wage Rates - Tasmanian Minimum Wage rate determined at $640.90pw - s47AB – work related allowances increased by 3.0% - supported wage varied - operative date ffpp 1 August 2014
DECISION
[1]	This application lodged by the Tasmanian Trades and Labor Council seeks the following:
•	Vary the Tasmanian Minimum Wage specified by s.47AB of the Act by an increase of 3.0% to become $640.90 per week, and to increase the Minimum Wage contained in awards to the same level.
•	Vary work related allowances by 3.0%.
•	Increase the minimum wage payable to persons engaged under the supported wage system.
•	Adjust salary rates in the Tasmanian State Service National Training Wage Award.
[2]	This application arises out of the Annual Wage Review 2013-14 of the Fair Work Commission (FWC) handed down on 4 June 2014.  In this decision the Full Bench noted:
“[59] We have decided that the range of considerations we are required to take into account favours the award of an increase which will result in a modest improvement in the real value of modern award minimum wages. There has been almost no growth in the real value of award rates over a period when other employees have had substantial wage increases in circumstances in which the economic environment has been sound. The deterioration in the relative living standards of award-reliant workers; the needs of the low paid; the recent widespread improvement in labour productivity growth; the historically low levels of real unit labour costs; and the absence, in aggregate, of cost pressures from the labour market are all factors favouring a real increase in minimum wages. These factors are moderated by the SG rate increase to apply from 1 July 2014.
[60] As to the form of the increase, past flat dollar increases in award minimum rates have compressed award relativities and reduced the gains from skill acquisition. The position of the higher award classifications has reduced relative to market rates and to average earnings and has fallen in terms of real purchasing power. These considerations led the Panel to determine a uniform percentage increase. The increase in modern award minimum wages we have decided on is 3 per cent. Weekly wages will be rounded to the nearest 10 cents.”
[3]	This application was supported by Mrs Stanislaus-Large of the Australian Nursing and Midwifery Federation (Tasmanian Branch) who, in addition, sought the variation of certain allowances in the Nurses and Midwives (Tasmanian State Service) Award.
[4]	Mr Baker, on behalf of the Minister, consented to the application and in addition, sought the variation of salaries in a number of nominated awards, which, he submitted, had the character of a genuine minimum rates safety net as distinct from salaries reflecting bargained outcomes.
[5]	This Commission has aligned the Tasmanian Minimum Wage with that determined by FWC for the past four years. In light of the consent of the parties we consider that it is consistent with the public interest to continue the alignment on this occasion.
[6]	The formula for the adjustment of work related allowance is derived from the 1999 review of the Wage Fixing Principles.. For completeness, it is repeated below.
“Work related allowances are to be adjusted by the percentage that each Tasmanian Minimum Wage adjustment bears to the Classification Level C10 - Manufacturing and Associated Industries and Occupations Award [MA00100] weekly wage rate at the time that the Tasmanian Minimum Wage case adjustment is determined.”
[7]	Pursuant to s.47AB of the Act we determine that the Tasmanian Minimum Wage for an adult in full-time employment will be $640.90 per week effective from 1 August 2014.
[8]	Pursuant to s.23 of the Act, awards containing a Minimum Wage clause will be varied to reflect this decision.
[9]	Salaries contained in the Custodial Officers Award, Medical Practitioners (Public Sector) Award, Nurses and Midwives (Tasmanian State Service) Award and the Tasmanian State Service National Training Wage Award will be increased by 3%.
[10]	Salaries contained in the Tasmanian Ambulance Service Award will be held over pending the outcome of proceedings currently before the Supreme Court.
[11]	Awards containing a Supported Wage clause will be varied to reflect the new supported wage of $80 per week. We note that this rate has historically been set at an income which does not compromise benefits received under the Disability Support Pension.
[12]	Work related allowances in all awards will be increased by 3.0%. The President will convene a separate conference of the parties to the Nurses and Midwives (Tasmanian State Service) Award to consider whether certain allowances in that award should be similarly varied.
[13]	All award variations arising from this decision will be effective from the first full pay period commencing on or after 1 August 2014.
[14]	Orders arising out this decision will be settled with recourse to the Registrar with oversight from the President.

Tim Abey
President 

Appearances:
Mr P Tullgren for the Tasmanian Trades and Labor Council
Mr P Baker for the Minister administering the State Service Act 2000
Ms A Stanislaus-Large for the Australian Nursing Federation (Tasmanian Branch)

Date and place of hearing:
2014
July 16
Hobart