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T13680

TASMANIAN INDUSTRIAL COMMISSION


Industrial Relations Act 1984
s35 application for increase in Tasmanian minimum wage


Tasmanian Trades and Labor Council
(T13680 of 2010)


PRESIDENT P L LEARY
DEPUTY PRESIDENT TIM ABEY
COMMISSIONER J P MCALPINE
HOBART, 9 July 2010


Wage Rates - State Minimum Wage rate determined at $569.90 - s.47AB operative date 1 August 2010


REASONS FOR DECISION


[1] Section 35(10A) of the Act reads:

A Full Bench of the Commission must convene and conduct a hearing annually to determine the Tasmanian minimum wage specified in section 47AB.

[2] The current minimum wage is $558.10 and has applied since 1 August 2009.

[3] In correspondence dated 22 June 2010 Mr Cocker, on behalf of the Tasmanian Trades and Labor Council (TTLC) (Unions Tasmania), sought an increase in the Minimum Wage equivalent to that recently determined by Fair Work Australia.  That amount is $569.90 per week.

[4] On 26 June 2010 a public notice was published in the three daily newspapers inviting persons or organizations with an interest in these proceedings to lodge a written submission.  A similar invitation was forwarded to organizations and Agencies party to State sector Awards.

[5] In a supporting statement Mr Cocker submitted:

• Contrary to immediate past practice the method of examining the minimum wage at the federal level is a method akin to that practiced in Tasmania.

• It is appropriate that the Tasmanian Minimum Wage be maintained at a relevant and contemporary level.

• Notwithstanding the limited application of the minimum wage, the referral of powers to the Commonwealth in relation to the private sector is conditional on the integrity of the Fair Work Act principles being maintained as at the date of referral.  It is therefore conceivable that at a point in the future the Tasmanian Minimum Wage may be called on.

[6] In correspondence dated 24 June 2010 Mr Dilger, on behalf of the Tasmanian Chamber of Commerce and Industry Limited (TCCI) indicated support for the Unions Tasmania application.

[7] In correspondence dated 6 July 2010 the Minister for Workplace Relations supported the agreement between the TTLC and the TCCI.

[8] In a decision handed down on 3 June the FWA Minimum Wage Panel (the panel) observed:

Our review of economic conditions indicates that since March 2008 the Australian economy has performed much better than expected.  During that time, productivity, prices and real earnings have grown but minimum wages have not.  There is a strong case for a rise in minimum wages to provide a fair and relevant safety net, protect the relative living standards of award-reliant employees and assist the low paid to meet their needs.  The forecasts for 2010-11 give strong grounds to conclude that such an increase could be awarded without threatening business viability, employment growth or adding to inflation.  We have concluded that a significant increase in minimum wages is warranted.

[9] A relevant consideration of the panel was the fact that the Commonwealth Minimum Wage had remained unchanged since July 2008.

[10] We agree with the position adopted by the parties that there are good reasons why the Tasmanian Minimum Wage should now be aligned with that determined by the FWA panel.

[11] Accordingly, pursuant to s.47AB of the Act, we hereby determine that the minimum weekly wage for an adult full-time employee is $569.90 per week, operative from 1 August 2010.

 

 


P L Leary
PRESIDENT