The Australian Industrial Relations Commission (the AIRC) retains the power to adjust transitional award wage rates, but must do so in a manner not inconsistent with the decisions of the AFPC. It was reported in the last edition of The ARA Retailer that a Full Bench of the Australian Industrial Relations Commission last December handed down a decision to flow on the wage increase awarded by the Australian Fair Pay Commission to transitional awards. That decision awarded:
- $27.40 a week increase to minimum rates of pay under transitional awards of up to $700 a week
- $22 a week increase to minimum rates under transitional awards of over $700 a week
- An increase to the federal minimum wage in those awards by $27.40 a week.
The increase applies from the first pay period commencing on or after 1 December 2006 for the applications that were filed in the AIRC by 1 December 2006. Union applications received by the AIRC after 1 December 2006 are to be heard separately and operative prospectively.
The AIRC also decided to vary work related allowances in both pre-reform and transitional awards commensurately in accordance with the Furnishing & Glass Industries Allowances decision of 1996. However the AIRC is yet to issue many Orders for awards that operate in the retail industry and in some cases the AIRC have issued orders granting an increase for transitional award rates and allowances but failed to issue orders to increase allowances for the equivalent pre-reform award.
Delays by the AIRC in issuing Orders had been a feature of the pre-reform wages system, however delays of this magnitude are clearly unacceptable to employers who will need to back pay employees when the relevant issues are ordered.
The following table sets out the operative dates and the orders issued/not issued for a variety of federal transitional awards applicable in the retail industry together with ARA Circular numbers. Members should note that until such time as the relevant Order is issued by the AIRC the award has not been varied for any increase and therefore despite the decision of the AIRC, employers cannot be in breach of the award if they have not passed on the increase. The following pre-reform awards have been varied by the AIRC to increase wage related allowances as a result of the flow on of the AFPC minimum rate increase.
Members should note that at the time of writing there were several key retail pre-reform awards including the SDAEA-Victorian Shops Interim Award 2000 for which the AIRC had yet to issue Orders increasing allowances in line with the AFPC decision. For enquires call ARA Employee Relations in Melbourne on (03) 9321 5020 or Sydney on (02) 9290 3766.
