Australian regulation provides that the Fair Work Commission is required to review modern award minimum wage and to make a national minimum wage order. This work is conducted by the Minimum Wage Panel. The Panel is required to conduct an annual wage review in each financial year. Any determination made varying minimum wage in modern awards in the review must come into operation on 1 July 2020 in the next financial year, unless there are exceptional circumstances.
The Fair Work Act sets out some important process requirements for the review. They include the provision of a reasonable opportunity for all persons and bodies to make written submissions, the publication of the written submissions, and a reasonable opportunity for submissions to be made in reply.
Traditionally, these submissions reflect stakeholders’ views as to the reference of minimum wage regulation.
https://www.fwc.gov.au/awards- agreements/minimum- wages- conditions/annual- wage- reviews/annual- wagereview-2019-20
Main Stakeholders Submissions:
Australian Government Submission:
Australian Chamber of Commerce and Industry (ACCI):
Australian Council of Trade Unions Submission:
Ai – Australian Industry Group Submission:
Having analysed these documents, please answer the following:
The approach to minimum wage determination provided in the FWA is a hybrid of two key theoretical approaches to wage determination (neo-classical assumptions and institutional accounts). The hybrid approach provided for the FWA aims to benefit the interest of both employees and employers.
The 2017-18 minimum wage review of the decision of the FWC demonstrates that the aims of the FWA have been achieved.
Critically evaluate this assertion with reference to:
The contrasting interests to minimum wage determination reflected in the submission of the (ACTU) Australian Council of Trade Union on one side and (Ai Group) Australian Industry Group and Australian Chamber of Commerce & Industry (ACCI) on the other side.
The extent to which this tripartite agreement approach on minimum wage determination aligns with contemporary reward management to preserve both business competitiveness and fair work conditions.
A minimum of 8 academic references is required. These references are in addition to the Fair Work Commission decision and stakeholders’ submissions.
Please follow the format below:
Analysis and Discussion