CITATION : 2014 WAIRC 00471 CORAM : CHIEF COMMISSIONER A R BEECH ACTING SENIOR COMMISSIONER P E SCOTT COMMISSIONER S J KENNER COMMISSIONER S M MAYMAN HEARD : WEDNESDAY, 28 MAY 2014, FRIDAY, 6 JUNE 2014 DELIVERED : WEDNESDAY, 11 JUNE 2014 FILE NO. : APPL 1 OF 2014 BETWEEN : COMMISSION'S OWN MOTION Applicant AND (NOT APPLICABLE) Respondent CatchWords : State Wage order - Commission’s own motion - Minimum wage for employees under Minimum Conditions of Employment Act 1993 - Award rates of wage - Award minimum wage - State wage principles Legislation : Industrial Relations Act 1979 s 26, s 41, s 50A, Minimum Conditions of Employment Act 1993 s 12, Fair Work Act 2009 (Cth) s 284 Result : 2014 State Wage Order issued Representation: Ms M Williams and with her Ms C Purcell on behalf of the Hon Minister for Commerce Mr P Moss and with him Ms D Mead-Adams on behalf of the Chamber of Commerce and Industry of WA (Inc) Mr S Dane and with him Dr T Dymond on behalf of UnionsWA Case(s) referred to in reasons: Fair Work Commission Annual Wage Review 2013-14 [2014] FWCFB 3500 State Wage Order Decision [2013] WAIRC 00347; (2013) 93 WAIG 467 642 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. State Wage Order Decision [2012] WAIRC 00346; (2012) 92 WAIG 557 State Wage Order Decision [2011] WAIRC 00399; (2011) 91 WAIG 1008 Reasons for Decision INTRODUCTION 1 This is the unanimous decision of the Commission in Court Session. Section 50A of the Industrial Relations Act 1979 (the Act) requires the Commission before 1 July in each year, of its own motion, to make a General Order – - setting the minimum weekly rate of pay applicable under s 12 of the Minimum Conditions of Employment Act 1993 to employees who have reached 21 years of age and who are not apprentices; - setting the minimum weekly rates of pay applicable to apprentices; - adjusting rates of wages paid under awards; - varying each award affected by the General Order to ensure that the award is consistent with the order; - making other consequential changes to specified awards if appropriate, and - setting out a statement of principles to be applied and followed in relation to the exercise of jurisdiction under the Act to set the wages, salaries, allowances or other remuneration of employees or the prices to be paid in respect of their employment. 2 The Commission gave public notice of the hearing in local newspapers on 19, 23 and 28 April 2014, and on the Commission’s website and in the WA Industrial Gazette on 23 April 2014 ((2014) 94 WAIG 401) inviting submissions from interested persons. We set out below an outline of the submissions received. The Hon Minister for Commerce 3 The Minister submits that the WA Government is committed to promoting flexible, fair and productive employment practices that serve the interests of employees, employers and the State as a whole. WA has experienced strong economic growth underpinned by high levels of business investment in recent years. However, as outlined by the Department of Treasury, business investment levels and employment growth have moderated significantly as a number of large resource projects move into the less labour-intensive operational phase. Leading indicators of labour demand suggest employment growth in the State will remain subdued in the near-term. It is therefore imperative that any adjustment to the State minimum and award rates of pay does not damage the viability of business enterprises or the willingness of employers to create new jobs. The Minister supports taking a balanced approach which accords appropriate significance to the impact of minimum wage and award rate adjustments on both employers and employees and any adjustment should be weighed against the capacity of employers, particularly in small business, to pay for wage increases. 4 The Minister notes that employers will soon bear the cost of another increase to compulsory employer superannuation contributions following the increase implemented in July 2013 which will be a considerable impost on employers, particularly those in small business. This year’s minimum wage increase should also be considered in the context of employer capacity to sustain a rise in minimum and award wages. Improving the performance and competitiveness of the State’s economy and supporting employers to sustain and create employment is critical to meeting the social and economic aims of the criteria set out in s 50A(3) of the Act. 5 In the Minister's view, current economic circumstances warrant a cautious approach to the State Wage Order. While it is important that living standards for minimum and award wage earners are maintained, it is also crucial that the ability of employers to sustain and create jobs is not impeded by higher wage increases. For these reasons, the Minister argues that an increase to State minimum and award wages in line with estimated actual CPI for the current financial year is the most responsible and appropriate course of action at the current time. The most recent Treasury estimates of growth in the CPI for Perth, as published in the 2014-15 State Budget, would preserve the spending power of employees receiving minimum and award rates whilst ensuring that wage costs for employers remain sustainable. That Treasury estimate is 3 per cent, which would result in the current minimum wage of $645.90 per week being increased by $19.40 to $665.30 per week, with corresponding increases to award rates of pay for other classifications of employees. The Minister notes that the available information suggests that a relatively small proportion of Western Australian employees are reliant upon minimum and award rates. As such, it is unlikely that an increase to minimum and award wages in line with CPI would have a detrimental effect on employment, inflation or the economy. The State Wage Order does influence outcomes across the spectrum of pay setting arrangements by providing a floor for negotiation of individual or collective agreements in the State jurisdiction. Chamber of Commerce and Industry of Western Australia (Inc) 6 CCIWA states that WA is the only State to which two different minimum rates of pay still apply within the private sector. The current difference between the State and national minimum wages is $23.70 per week which creates an uneven playing field for business. State based employers, who are often small businesses with a limited ability to absorb increased costs, have to pay higher award rates of pay compared to their often larger national system competitor. 7 Whilst growth within the WA economy has been strong in recent years, this is no longer the current economic climate, with the WA economy slowing in line with the national economy, particularly in comparison with recent years. Growth in the cost of living as measured by the CPI for Perth is largely in line with the national average. Consequently, CCIWA submits that the Commission should look to equalise the State minimum wage with the national minimum wage over a number of years. CCIWA proposes that this occur by taking into account the 2014 national minimum wage increase and then decreasing the percentage increase awarded by 1 per cent which, over a period of three to five years, will close the gap between the State and national minimum wages, subject to the discretion of the Commission. 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 643 8 CCIWA advocates for an increase to the State minimum wage which is lower than the rate of inflation on the basis that the current economic climate provides a strong argument for such an adjustment and also it is important to ensure that minimum wages do not act as a barrier for the unemployed. CCIWA also points to the high level of unemployment currently seen across both WA and Australia and states that the high cost of employing people contributes to levels of employment. 9 CCIWA believes that it is appropriate for there to be a restrained approach to adjusting State minimum wage and relevant award rates of pay to take into account the decline in the State economy. This is particularly important for the small businesses that make up the majority of the State system who have not necessarily benefited from the resource boom. 10 In arriving at its position CCIWA carefully weighed the different statutory considerations and particularly the state of the WA economy and relevant national and international economic factors, particular industry sectors and businesses most affected by minimum wage decisions, the tax transfer system and superannuation impacts, and changes in the cost of living. 11 CCIWA also submits that any increases granted beyond that awarded through the national minimum wage review will have a very limited impact on the overall living standards of WA employees. Hence higher wages growth in the State system will have a negative impact upon the largely small businesses in the State system without a corresponding benefit to the overall standard of living of WA employees. 12 CCIWA states that the capacity of employers to increase wages is affected by the superannuation guarantee contribution rate increases. Superannuation is a direct cost to employers which affects an employer’s ability to increase an employee’s base rate of pay. 13 It is CCIWA’s opinion that the majority of employees who are covered by the State system would be covered by an award, and that employees in the retail and hospitality sector are largely award reliant. The introduction of seven day trading and the opportunity to trade until 9 pm on weekdays means that penalty rates now form part of many employers’ standard operating hours. However, the market in which small business currently operates has also changed with online competitors not having the same restrictions and being able to maintain a lower cost base. Therefore an increase to the base rate of pay of the award is compounded by the effect of penalty rates. Penalty rates have a large impact on the profitability of small business over weekend and public holiday periods. 14 CCIWA states that although growth in the WA economy remains strong, not everyone has benefitted from the resources boom, including employers, with a number of industries facing significant challenges. The current economic environment remains a challenge for WA businesses. The ability for a small employer to meet the cost of doing business is a key determinant in its survival. CCIWA submits that there is a lower rate of business survival in WA compared to Australia as a whole and increasing costs on business will further increase the pressure on business in WA in an already volatile period for business. Business is less confident about its future growth. 15 CCIWA points to the cost burden on business from the WA State Budget, with increases in electricity prices, water expenses, land tax and land fill levy directly impacting on employers. 16 CCIWA states that Australia currently has the highest minimum rate of pay compared to any other OECD member country. This has implications for the competitiveness of Australian industry within a global economy. CCIWA urges consideration to be given to a combination of both minimum wages and the tax transfer system in determining whether the current minimum wage provides an effective safety net. 17 CCIWA tendered the affidavit of Kendall Scott, Manager of the Employee Relations Advice Centre. Ms Scott attached call figures from the CCIWA Employee Relations Advice Centre reflecting calls recorded specifically in relation to redundancy from the period May 2012 to April 2013 and May 2013 to April 2014. Her evidence showed that between May 2012 and April to 2013 CCIWA received 1,621 calls with respect to redundancies, equating to 5.51 per cent of total calls; between May 2013 and April 2014 there were 2,226 calls, equating to 6.93 per cent of total calls. This is showing a worrying increase in the number of employers who are considering the need to make employees redundant. CCIWA attached copies of the March Quarter 2014 Outlook publication. UnionsWA 18 UnionsWA contends that the Commission should make a substantial real wage increase for award reliant workers, saying that it is essential to address the ever widening gap between low paid workers and the rest of the workforce in WA. UnionsWA advocates for a wage increase of 5.5 per cent which will increase the minimum wage by $35.52 per week. This increase will address the needs of the low paid, improve and maintain living standards, protect employees who are unable to bargain, and aims to address the gender pay gap. 19 UnionsWA states WA remains a highly unequal State in terms of income distribution between individuals, between households and between genders. In order to address these gaps, any increase to the State minimum wage should constitute a real increase. 20 UnionsWA contends that WA’s minimum wage should reflect its overall strong economic performance; it should also play its part in redressing the growing inequalities in WA society and while it is by no means the only response to these growing inequalities, other responses will not be adequate without a sufficient minimum wage increase. 21 UnionsWA argues that for low paid workers some costs have more impact than others and thus the State minimum wage should be increased higher than the movement in the all groups CPI. Reference was made to the recent State and Commonwealth budgets increasing key essential items well above CPI levels. UnionsWA refers to the April 2014 ‘State of the States’ economic performance report produced by CommSec which found that WA remains Australia’s best performing economy, leading the way on retail trade and is second strongest on economic growth. UnionsWA says that economic performance, alongside continuing strong population growth, supports its contention that business can afford such an increase. 22 UnionsWA points to the WA, and national, minimum wages deteriorating as a percentage of average weekly ordinary time earnings with WA doing worse than Australia as a whole despite having a higher minimum wage in absolute terms. The most 644 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. recent release of the household income and income distribution survey for 2011-12 shows that WA remains more unequal than Australia as a whole. WA’s boom times have not ‘trickled down’ to the lowest income households. Minimum wage rates complement, rather than compete with, the tax transfer system. The work of Professor Peter Whiteford of the Social Policy Research Centre argues that the combination of Australia’s relatively high minimum wages and targeted family benefits also reduces child poverty among working families by more than any other country. 23 UnionsWA asks for a percentage increase rather than a flat increase as part of its general concern to maintain the real value of award rates. 24 Referring to the difference between the WA and national minimum wages, UnionsWA observes there is no evidence that the difference has been detrimental to WA’s economy. To set the WA minimum wage on par with the national minimum wage would mean that s 50A(3)(b), which requires the Commission to take into consideration the state of WA’s economy and the likely effect of its decision on the economy, and in particular on the level of employment, inflation and productivity in WA, would have little work to do and would be inconsistent with the functions given to the Commission. 25 UnionsWA says that WA’s unemployment rate of 4.9 per cent in April 2014 is the lowest of all states and this indicates that the WA economy has not suffered from having a State minimum wage that is higher than the national minimum wage. There is also no evidence that WA’s productivity has suffered from having a higher minimum wage. 26 UnionsWA provides data to support the contention that vulnerable groups of employees, being female, aged between 15 to 24 years and working part time, are over represented within the private sector of the State industrial relations system. Having a majority female workforce in these sections of the State industrial relations system is particularly significant given that WA’s gender earnings gap of 23.6 per cent continues to be far higher than the national gap of 17.1 per cent. 27 UnionsWA submits that WA’s labour productivity growth has been driven significantly by the rental hiring and real estate services industry, one of the industries most likely to include unincorporated business. UnionsWA provided a table showing that for these industries, labour productivity growth over the past five years has been to varying degrees positive in comparison with their national counterparts, and this is important as it substantially covers a period of time in which the WA State minimum wage has been higher than the national minimum wage. There is no evidence that the State minimum wage has been a burden for these industries. 28 UnionsWA noted that the number of businesses operating in the industries most likely to be impacted by the State minimum wage increased 3.4 per cent between 2007-8 to June 2012 with retail trade the only industry with business numbers that went backwards during this period; however, figures for retail turnover since 2008 appear to show that that industry continued to expand in WA during this time. UnionsWA concludes that neither the WA economy, nor those industries most likely to be impacted by the State minimum wage, have been adversely impacted by having a State minimum wage higher than the national minimum wage; indeed, they demonstrate the WA economy’s ability to sustain a higher State minimum wage. UnionsWA contends, however, that whilst the State economy is performing well there are serious concerns about how many Western Australians are actually sharing in the benefits of that performance. It refers to the most recent WA State Budget as adding to cost of living pressures. It joins with the WACOSS submission pointing out that dramatic increases in the cost of gas, electricity and water in recent years has meant that low income households who spend a greater portion of their income on utility bills are feeling the pressure of the rising cost of utilities more than other Western Australians. 29 UnionsWA urges the Commission to again conclude that growth in the State minimum wage is not keeping pace with the growth in wages generally in WA whether measured according to the WPI or to AWOTE. WA is the most unequal State in the country in terms of income distribution. The Commission should not award a lower increase to the minimum wage than it otherwise would by taking into account the impact of the superannuation guarantee rate increase. UnionsWA attached a copy of the ACTU submission to the Annual Wage Review 2013-2014, Fair Work Commission Research Report 7/2013 entitled Minimum wages and their role in the process and incentives to bargain and the ACTU Budget Briefing May 2014. Australian Hotels Association (Western Australia) 30 AHAWA submits that the Commission should consider the wage increase to be awarded should take into account the superannuation guarantee increase of 0.25 per cent on 1 July 2013 as an added cost to small business that will put further strain on the cost-to-wage ratio. It submits that the hospitality sector has been significantly impacted by the introduction of the carbon tax and that the profitability of hospitality businesses has been impacted up to 11.8 per cent due to the carbon tax alone. Utility expenses have also increased at a rate higher than expected because of the carbon tax and other general increases. 31 Trading conditions for hospitality businesses, which are generally small businesses and family owned and are more likely to be located in regional areas, are affected due to a downturn in the economy, a reduction in tourism and the impact of the high Australian dollar, all of which have not assisted small business in regional and rural WA. 32 AHAWA submits that the national and State minimum wage should be on an equivalent level and therefore the State minimum wage should remain stagnant, or alternatively transition this difference over the next two years until the federal minimum wage attains the same level as the State minimum wage. 33 AHAWA submits that if there is to be a wage increase, it should be a 1 per cent, or $6.46 per week, wage increase. 34 AHAWA notes that historically, hospitality is an award based industry and employees within it are more likely to be employed under the award system than in most other industries nationwide. Therefore, any adjustment to the minimum wage has a significantly greater impact on the hospitality and tourism sectors than other industries where there is less exposure to the award system. 35 AHAWA submits that the hospitality industry has experienced difficult conditions over recent periods, mainly because it operates on a 24 hour/7 day basis. It is highly labour intensive and as such is impacted by wage increases which affect not only the base rate but penalty rates as well. AHAWA members have wages costs some 65 per cent higher than the average Australian business because of these higher labour costs. 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 645 36 AHAWA also points to the increasing cost in operating a small business in hospitality as a result of the State Budget increases, including electricity, land tax, and water rates. 37 Businesses in regional areas will be continually exposed to significant increases in operational costs and worsening labour shortages in the foreseeable future. Regional businesses are generally small and primarily sole traders or small partnerships. These businesses often have few staff with the responsibility falling on proprietors to work longer hours. Western Australian Council of Social Services Inc 38 WACOSS relies on s 50A(3)(a) of the Act to submit that an increase of $35 to the State minimum wage is consistent with the need to maintain a fair system of wages and conditions in the current WA context. It refers to the range of issues facing minimum wage workers in WA which were addressed by it in its 2013 State Wage Case submission, and carefully assesses the changing economic and workplace environment for these workers. Its current submission aims to provide the Commission with the best available data upon which to base its deliberations in the best interests not only of minimum wage workers and their families but also of the wider WA community. WACOSS considers minimum wages to be a vital means of protecting low income workers from poverty, the benefits of which are felt by minimum wage workers, their families, their children and society at large. It is important for the wages earned by full time minimum wage employees to be sufficient to ensure they have the capacity to meet their basic living costs while living with dignity and respect. 39 The primary focus of WACOSS’s claim is the increasing cost of living pressures in WA. Ultimately, WACOSS’s conclusion is that the living standards of the lowest paid members of our community have not improved in any significant way in the last 12 months and the current minimum wage does not currently reflect a fair wage in the context of living standards generally prevailing in the community. 40 WACOSS developed its submissions in relation particularly to income inequality in WA, noting that lower levels of income inequality deliver stronger economic growth. Lower levels of inequality also deliver better social outcomes. WACOSS remains concerned about the rate at which the gap between the State minimum wage rate and median pay levels continues to grow in WA: between November 2003 and November 2013, AWOTE increased by 79 per cent (from $905.50 to $1,620) but the State minimum wage only increased 44 per cent. 41 WACOSS submits that WA remains in a relatively strong economic position, however WACOSS’s analysis shows that the cost of essential services and items including housing, utilities and food has increased at a much faster rate than non-essential or discretionary and luxury items such as cars, computers and overseas holidays. The increase in the cost of essential items is hardest felt by low income households who spend a much higher proportion of their household income on essentials. It is the low income individuals and households in WA who are really struggling with the increases to the essential costs of living and are, or are at risk of, slipping into poverty. These are the people for whom increases to the rate of the State minimum wage really count. 42 WACOSS submits the lack of affordable housing and the ongoing increases in the cost of housing are the most pressing issues facing low income households in WA. High rental costs continue to place great pressure on low and medium income households and it is imperative that the State minimum wage be increased at a rate which reflects the rising cost of living in WA over recent years. WACOSS acknowledges that the urgent need to address the lack of affordable housing is outside the remit of the Commission, however, the high cost of housing must remain a key consideration for the Commission when regard is had to the need to provide fair wage standards in the context of living standards generally in the community. WACOSS also refers to utilities, food and transportation cost of living pressures which caused particular stress for households in WA. 43 WACOSS also submits that the level of the State minimum wage is significant to the WA community sector because community sector service providers play an important role in supporting vulnerable members of the WA community, including many who struggle to survive on low incomes due to the rising cost of living. For a long time the community sector in WA has been under resourced and community sector employees have been significantly underpaid. Minimum wage increases are significant for many workers within the female-employee dominated community sector. WACOSS also points to the equal remuneration orders by which the Commission amended the WA Social and Community Services Award and the Crisis Assistance and Supported Housing Award submitting that in the event of a weak minimum wage increase, community sector workers will effectively be losing some of the pay equity remedy they have just been awarded. 44 WACOSS also notes that WA consistently records the largest gender pay gap of any State in Australia, a gap much larger than the national average. WACOSS submits that it is broadly accepted that in Australia women are more likely than men to be reliant on the minimum wage. Significant contributors to this are the disproportionate responsibility women have for unpaid work, including the care of elderly people, children and adults with disabilities, and grandchildren, and their lower pay relative to men. WACOSS says that the most recent figures from November 2013 show that the male ordinary time earnings are 30.9 per cent higher than those of females in WA, compared with a 20.6 per cent difference nationally. Therefore, the Commission’s decision relating to the setting of the State minimum wage is of particular significance to female workers in WA. 45 Further, WACOSS argues that by increasing the minimum wage the resilience and self-sufficiency of low paid workers would be improved to the benefit of the national welfare system and the community more broadly. WACOSS believes that given the decreasing relevance of junior wages in WA, the full rate of the increase to the minimum wage must be applied to both junior and adult wage rates, and not a proportion of the minimum wage increase. WACOSS attached the Cost of Living Report 2013. Mr Archie W Marshall 46 In a written submission, Mr Marshall submitted that the minimum basic wage for persons over 18 years of age should be abolished. Mr Marshall believes that it is a disadvantage to many marginal people who become unemployable as a result. All people should be paid what they are worth and that is to a large extent up to them. The best employees will get the best jobs and vice versa to the advantage of both employers and employees. Mr Marshall states that high wages fixed by regulation 646 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. prevent many new business ventures starting at all and thus denying the employment of marginal people, earning taxable income and providing service to the customers of those businesses. He believes that a minimum wage for persons over 18 creates a sense of entitlement and does nothing to help create a work ethic in young people. Young people who cannot find work due to the high wages required will tend to do little to improve their chances of getting a job and will likely turn to crime and other antisocial activities due to boredom and a sense of hopelessness. Mr Marshall set out some of his personal history and submits that while he has no academic qualifications, his extensive experience entitles him to an opinion which is to abandon the regulated wage system and release the potential of all people to better themselves. The Statutory Criteria 47 The Act obliges the Commission to set a minimum wage. Section 50A(1)(a) states: (1) The Commission shall before 1 July in each year, of its own motion make a General Order (the State Wage order) — (a) setting — (i) the minimum weekly rate of pay applicable under section 12 of the Minimum Conditions of Employment Act to employees who have reached 21 years of age and who are not apprentices; (ii) the minimum weekly rate or rates of pay applicable under section 14 of the MCE Act to apprentices. 48 The Act in s 50A(3) obliges the Commission in making a State Wage order to take into consideration: (a) the need to — (i) ensure that Western Australians have a system of fair wages and conditions of employment; (ii) meet the needs of the low paid; (iii) provide fair wage standards in the context of living standards generally prevailing in the community; (iv) contribute to improved living standards for employees; (v) protect employees who may be unable to reach an industrial agreement; (vi) encourage ongoing skills development; and (vii) provide equal remuneration for men and women for work of equal or comparable value; (b) the state of the economy of Western Australia and the likely effect of its decision on that economy and, in particular, on the level of employment, inflation and productivity in Western Australia; (c) to the extent that it is relevant, the state of the national economy; (d) to the extent that it is relevant, the capacity of employers as a whole to bear the costs of increased wages, salaries, allowances and other remuneration; (e) for the purposes of subsection (1)(b) and (c), the need to ensure that the Western Australian award framework represents a system of fair wages and conditions of employment; (f) relevant decisions of other industrial courts and tribunals; and (g) any other matters the Commission considers relevant. 49 The operation of the Fair Work Act 2009 (Cth) (the FW Act) means that the order which will issue from this decision will apply only to employers in the private sector, and local governments in WA, which are not trading or financial corporations and the public sector. Mr Marshall’s Submission 50 The Commission is obliged to apply the law as it stands and, relevantly, the law is that the Commission must set a minimum wage each year for persons over 18 years of age. Whether or not the minimum basic wage for persons over 18 years of age should be abolished is a matter for the WA Parliament. Even if the WA minimum wage was abolished, there would still be a national minimum wage applying in WA to employees employed by employers covered by the national industrial relations system. Mr Marshall’s submission therefore cannot be considered by the Commission. Coverage of the State Wage Order 51 Each of the persons appearing made some submissions on the accuracy of the data available which allows the estimate to be made of the numbers of employers and employees covered by the WA industrial relations system. The differences between the submissions are matters of detail and no person submitted that it was necessary for the Commission to decide those differences for the purpose of this matter. 52 In our 2013 decision ([2013] WAIRC 00347; (2013) 93 WAIG 467) we referred to the conclusion of the late Professor David Plowman, from the Graduate School of Management at the University of Western Australia1 in 2006 that about 2.2 per cent of 1 It is with sadness that we note Professor Plowman died in December 2013. At the request of the Commission in 2006 when s 50A of the Act was passed Professor Plowman prepared a report on the effects of past statutory minimum wage adjustments on the number of persons employed, the number of unemployed persons seeking work, job vacancies, average weekly ordinary earnings, the level of inflation, the profit share, and the level of investment in Western Australia. We note here that his report has been recognised by the Commission, and persons appearing, in successive State Wage Cases as providing a definitive and accurate analysis. 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 647 the WA workforce would be directly affected by the State minimum wage adjustment and possibly 4 per cent of the WA workforce could be affected in differing degrees by the adjustments to other wages to maintain established relativities. There has not been a change in the available data which suggests his conclusion needs to be revisited here. We see no reason not to continue to regard his conclusion as valid for the purpose of our considerations. CONSIDERATION 53 We have set out above a summary of the respective submissions. UnionsWA points to the WA and national minimum wages as a proportion of AWOTE to show that WA is doing worse than Australia as a whole despite having a higher minimum wage in absolute terms. It develops a submission based upon measures of inequality from ABS data and argues strongly that an increase to the WA minimum wage arrests the relative decline of the minimum wage compared to wages generally and to assist other measures which go to inequality. The submissions particularly from WACOSS, and also UnionsWA, go to relative measures of the increase in the cost of essential services and items including housing, utilities and food compared with non-essential or discretionary and luxury items and that low income households spend a much higher proportion of their household income on essentials. 54 While low income households do not necessarily equate with employees who receive the WA minimum wage, the submissions present another context in which to set the minimum wage. They provide relevant information to the Commission which is helpful when endeavouring to measure the needs of the low paid, subject to an understanding of what the data measures. 55 The need to ensure that Western Australians have a system of fair wages and conditions of employment, and to provide fair wage standards in the context of living standards generally prevailing in the community, raise the concept of fairness. Fairness is a relative concept. The WA minimum wage has been set by properly taking into account all of the considerations in s 50A(3)(a) of the Act. The level of the WA minimum wage may be assessed by comparing it with a range of economic indicators. 56 The WA minimum wage has steadily increased in real terms since the 2006 amendment to the Act which required the Commission to set a minimum wage for WA taking into account a number of considerations. The increase to the WA minimum wage over time has been greater than the increase in the Perth CPI although not as great as the increase in wages generally as measured by the WPI, and significantly less than wages as measured by the AWOTE index (Minister’s written submission p 16 Figure 3). 57 However, our past decisions have made clear our view that the proper application of s 50A(3)(a) of the Act means that we do not, and cannot, set the WA minimum wage by reference to one particular measure. All of the measures, as they are encompassed within the considerations we are obliged to take into account, are relevant to our decision. These considerations, as reflected particularly in the respective submissions of UnionsWA and WACOSS on the one hand, and CCIWA and AHAWA on the other, necessarily require balancing by us. 58 In that context, UnionsWA and WACOSS emphasise the decline in the WA minimum wage relative to wage movements in WA as measured by the WPI and the AWOTE. We have endeavoured to point out that the need in s 50A(3)(a) of the Act for the Commission to ensure that Western Australians have a system of fair wages and conditions of employment, and to provide fair wage standards in the context of living standards generally prevailing in the community means this is a relevant, but not a determinative, consideration. Necessarily, the considerations in s 50A(3)(a) will not all point to the one result - there is likely to be tension between the economic, social and other considerations which the Commission is obliged to take into account. It is not resolved by adopting a rule such as increases to the WA minimum wage must be equal to wage movements in WA as measured by the WPI or the AWOTE. The Act requires the Commission to take into account each of the relevant statutory considerations. 59 A submission common to the positions of CCIWA and AHAWA, that we should order a lesser increase than might otherwise be warranted so that the WA minimum wage aligns over time with the national minimum wage, attracts a similar comment. In essence, the submission repeats their respective submissions in 2013. We repeat our conclusion in the 2013 State Wage Order decision that not to increase the WA minimum wage in order to allow it to align with the national minimum wage if the considerations in s 50A(3) of the Act otherwise warrant an increase would be inconsistent with the requirements imposed on the Commission by s 50A(3). 60 Between 1980, when the Act was proclaimed, and 2006 the Commission was required to consider the then National Wage Decision whenever it was made and give effect to it unless there were good reasons not to do so (s 51). That nexus with the national wage decision was broken in 2006 with the demise of national wage decisions. The Act was amended in 2006 in s 50A to require the Commission to set a minimum wage for WA each year to operate from 1 July. At the time of that amendment, there was no national wage decision as such and s 50A does not contemplate what is now the Annual Wage Review of the Fair Work Commission (FWC). For this reason s 50A(3) does not refer to the level of the national minimum wage as a matter to be taken into consideration when setting the WA minimum wage. 61 We are obliged by s 50A(3) of the Act to set a minimum wage for WA by having regard primarily to the conditions of the WA economy and labour market. If the Parliament wanted the WA minimum wage to be set by reference to the level of the national minimum wage this should be reflected in the Act. The requirements imposed on the Commission by the Act to take into account the need to meet the needs of the low paid, and to contribute to improved living standards for employees, are requirements which make it difficult, in our view, for a submission that the WA minimum wage be allowed to stagnate, or reduce, because it is higher than the level of the national minimum wage, to be able to be validly considered. No person appearing sought to persuade us that our view of the proper application of s 50A(3)(a) is incorrect. 62 Section 50A(3)(f) requires the Commission to take into consideration relevant decisions of other courts and tribunals and we have used this as a means for us to take the Annual Wage Review of the Fair Work Commission into consideration, as we do so later in these reasons. 648 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. 63 The requirement on the Commission in ss 26(1)(a) and (c) of the Act to decide matters according to equity, good conscience and substantial merit, having regard for the interests of the persons immediately concerned whether directly affected or not and, where appropriate, for the interests of the community as a whole, makes the national minimum wage relevant. There will be those who assess it as too low, as in UnionsWA’s submission, and those who assess it as too high; however for these proceedings, we recognise that it applies in WA and nationally. 64 In particular, it applies to businesses in WA, and their employees, in industry sectors, and in small businesses, which are trading corporations. The corporate structure of a business provides no basis for minimum wage setting purposes to validly differentiate between such national system employers and their employees in WA, and those businesses and their employees who are in the WA industrial relations system. If fairness is a relative concept then in fairness we must take into account and give due weight to the minimum wage that the majority of minimum wage employees receive in WA, and indeed throughout the country including by employees of sole traders, partnerships and unincorporated businesses in States other than WA. It should be noted, that those employees in WA who are reliant on the national minimum wage bear the same cost of living increases as those employees who are reliant on the WA minimum wage. 65 The regular setting of the WA minimum wage according to the proper application of s 50A(3)(a) of the Act has resulted in the WA minimum wage being higher than the national minimum wage because of differences between the relevant Commonwealth legislation and the Act, particularly since 2006. This requires us to consider the state of the economy of WA which has at times been quite different from the state of the national economy. 66 In the absence of any legislative requirement in the Act to take the level of the national minimum wage into consideration in setting the WA minimum wage, it is likely that there will be a gap between the two. Moreover, the requirement in s 50(3)(a)(ii) of the Act for us to take into account the need to contribute to improved living standards for employees, and the performance of the WA economy to that of the performance of the national economy, suggests it is likely that the WA minimum wage will remain higher than the national minimum wage over time. 67 However if the size of the gap between the two can be demonstrated as actually causing employers who are in the WA industrial relations system a practical, and not just a theoretical, detriment with the potential to affect any of the considerations in s 50A(3), s 50A(3)(g) together with s 26(1)(a) of the Act, it may permit this to be taken into account by the Commission in setting the WA minimum wage each year. 68 We do not have the evidence before us on this occasion to show that this point has been reached. 69 To return to the submissions which are before us, it must follow that when considering, as we are obliged to, the capacity of employers as a whole to bear costs of increased wages we accept that employers in the WA system who pay the minimum wage are paying a higher minimum wage than employers in WA in the national system, and nationally, who pay the minimum wage. The weight to be attached to the difference between the two minimum wages in WA is not clear. The full difference is apparent for employers who pay the minimum wage although it is not clearly established by the submissions before us what the significance of it is for employers in the WA system who pay above the minimum wage. 70 We recognise the need for wage increases resulting from the State Wage Orders not to act as a disincentive for employers and employees to pursue productivity improvements at the enterprise level. CCIWA submits that the opportunity for enterprise bargaining in small business is limited under the WA industrial relations system, and the impact of the State Wage Order on this is not able to be determined. Further, increasing minimum rates of pay to actual rates will reduce the opportunity for employers to pay over-award payments to individual employees to reflect individual levels of performance. 71 We recognise that the registration of an industrial agreement under s 41 of the Act requires a union to be party to the agreement to be registered and that union presence in small business is relatively insignificant. However we noted in the 2013 State Wage Order decision the evidence of Professor Barrett that there may be different responses of small business employers to an increase in the minimum wage including some opportunity for informal arrangements to be discussed. We note that we have not been provided with any evidence which would lead to the conclusion that the increases to the WA minimum wage since s 50A commenced in 2006 have discouraged productivity improvements at the workplace level. There will be employees who are unable to bargain for increased wages and we consider that the adjustment arising from this decision will protect those employees. Encouraging Ongoing Skills Development 72 Section 50A(3)(a)(vi) requires the Commission to take into consideration the need to encourage ongoing skills development. We here set out table 10 in the Minister’s submission: Apprenticeships commenced in Western Australia January 2006 – December 2013 Year Under 21 years 21 years and over Total Proportion of 21 years and over 2006 6,949 1,968 8,917 22.1% 2007 7,026 2,377 9,403 25.3% 2008 6,581 2,198 8,779 25.0% 2009 5,294 1,817 7,111 25.6% 2010 7,647 2,708 10,355 26.2% 2011 6,907 2,925 9,832 29.7% 2012 6,456 3,220 9,676 33.3% 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 649 2013 5,923 2,780 8,703 31.9% 73 We note that there has been a decline in the number of apprenticeships commenced in WA since 2010. In submissions, the Minister stated the categories of building and construction, automotive and metals, and manufacturing and services trades have all experienced a decrease in the number of apprentices in training since March 2008, although the metals and automotive trades has had a modest recovery since 2010, and there was a relatively strong take-up of electrical apprentices was due to the demand for electrical tradespeople during the construction phase of major projects in the resources sector. 74 There has been a decline in the number of traineeships commenced in WA in 2013 compared to previous years. 75 There is no submission that it is previous State minimum wage increases for apprentices and trainees resulting from State Wage Orders which have discouraged their uptake in WA. We note also that there has been no adjustment in WA awards to the standard relativity in State awards between the trade rate and the rates prescribed for first and second year apprentices. 76 We note the evidence (Minister submission p 31 Figure 4) showing that the average unemployment rate for 15-24 year olds looking for full time work has increased. The Commission should be mindful of the potential for minimum wage increases to affect employment opportunities for young people. WACOSS draws attention to the concept of junior rates and sees them as an anachronism, saying that a wage should be set according to competence rather than age. We see that as an issue going beyond the effect of a minimum wage adjustment and we do not accede to the WACOSS submission that junior wages receive the full amount of any increase to be awarded. We will continue to apply any increase proportionately to junior employees. Providing Equal Remuneration for Men and Women for Work of Equal or Comparable Value 77 We consider that an increase to the minimum wage has the potential to assist in providing equal remuneration for men and women for work of equal or comparable value. The distinction between this consideration and the gender pay gap has been recognised in previous State wage proceedings. We have recognised that in the private sector in Australia, women are much more likely than men to be dependent on the award rate and therefore annual increases to the minimum wage. The gender pay gap in WA has been estimated at 23.6 per cent, higher than the national average of 17.1 per cent. CCIWA submits that the gender pay gap has fallen by 2.8 per cent in the past 12 months. 78 We stated in the 2011 State Wage Order decision at 39 and 40 that the reasons for the gender pay gap in WA are complex and that the scope in State Wage Order proceedings for us to address those reasons is limited. We repeat that conclusion here. We nevertheless accept the evidence that a significant proportion of minimum wage employees is female, and correspondingly increases to the minimum wage will be of benefit to female employees. 79 Section 50A(3)(a) as a whole means that the requirement on us in s 50A(3)(a)(vii) of the Act, the need to ensure equal remuneration for men and women for work of equal or comparable value, also needs to be balanced with the other considerations in s 50A(3). In principle, an increase to the minimum wage will assist, at least to some extent, in reducing the gender pay gap for those female employees within the State jurisdiction. The State of the Economy of Western Australia 80 We are obliged to take into consideration the state of the economy of WA. We express our thanks to the WA Department of Treasury for providing its analysis of WA’s economy, and in the context of the national and international economies. The evidence given by Mr David Christmas, Director of the Economic Revenue and Forecasting Division is seen by the Commission as of significant importance given the requirement in s 50A to have consideration to the state of the WA economy and, to the extent that it is relevant, the state of the national economy. This assists us in our consideration of the corresponding analyses of the WA and national economies in the submissions before us. 81 In summary, growth of the State's domestic economy is expected to moderate from very strong growth rates in recent years, including 5 per cent in 2012/13, to fairly flat growth in State Final Demand in the next two years, and a gradual increase to 2.2 per cent by the end of the budget period. Gross State Product (GSP) is also expected to moderate but not to the same extent and then to strengthen in the next two years. 82 Employment growth is forecast to ease in 2013/14 and remain subdued over the following years, reflecting the transition from a labour-intensive investment phase of growth to a less labour-intensive production phase of growth. Wages growth as measured by WA Wage Price Index is forecast to remain below average, reflecting greater capacity in the labour market. The rate of inflation is expected to pick up in 2013 and 2014 but remain broadly within the Reserve Bank target of 2 to 3 per cent. Dwelling investment is one of the strong growth areas of the economy with dwelling investment increasing by 10.6 per cent in the calendar year of 2013, and forecasted to grow by 14 per cent in the financial year 2013/14. Household consumption is the single largest component of GSP and is projected to grow by 3 per cent in 2013/14, increasing to 3.75 per cent per annum by the end of the budget period. The available information suggests that business investment peaked in 2012/13 and is likely to taper off in coming years, although the level of investment is expected to remain high. 83 We reproduce the table of major economic aggregates for WA referred to by Mr Christmas. WESTERN AUSTRALIAN FORECASTS Major Economic Aggregates, Annual Growth (a) (%) 2012-13 Actual 2013-14 Estimated Actual 2014-15 Budget Estimate 2015-16 Forward Estimate 2016-17 Forward Estimate 2017-18 Forward Estimate State Final Demand (SFD) 5.0 0.25 0.0 0.75 1.5 2.0 Gross State Product 5.1 3.75 2.75 3.0 4.25 5.0 650 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. (GSP) Employment 3.5 1.5 1.5 1.75 1.75 2.0 Unemployment rate (b) 4.4 5.0 5.5 5.25 5.0 4.75 Wage price index (WPI) 4.0 3.25 3.25 3.5 3.5 3.75 Consumer price index (CPI) 2.3 3.0 2.75 2.5 2.5 2.5 (a) Annual average growth unless otherwise stated (b) Average rate over the year Source: 2014-15 Budget, Budget Paper No.3 84 With respect to labour productivity in WA, the evidence before us from both Mr Christmas and also from the UnionsWA submission is that productivity is not easy to measure at the State level. We acknowledge UnionsWA’s submission that in the year to 2013 WA’s labour productivity increased by 2.9 per cent. However, we think prudence should be exercised in attempting to reach any conclusions on the material before us. 85 The Commission has been responsive in the past to the State’s economic performance as providing a context to movements in the cost of living and wage rates generally in WA in the context of the considerations in s 50A(3)(a) of the Act. Overall, the evidence before us, particularly from the Department of Treasury, but also the information from CCIWA and UnionsWA, is that according to current economic indicators the WA economy has softened but continues to grow, however not as rapidly as it has grown in the past two years. Both inflation as measured by the CPI for Perth, and wages growth as measured by WPI, have slowed. The State of the National Economy 86 Mr Christmas’s evidence was that the Commonwealth Treasury projects the Australian economy will grow by 2.75 per cent in 2013/14 and 2.5 per cent in 2014/15. These rates are below the average growth of 2.9 per cent over the past decade and the Commonwealth Treasury is also expecting growth to dip and then strengthen as the economy transitions from resource- investment led growth to broader sources of growth over the coming years. The Commonwealth also expects softer employment growth in that transition period and is forecasting the unemployment rate to peak at 6.25 per cent in 2014 and 2015/16. Consumer prices are projected to grow by 3.25 per cent this year before softening to around 2.5 per cent in the following years. The Capacity of Employers as a Whole to Bear Costs of Increased Wages 87 The Minister’s submission showed that profits for WA businesses as a whole decreased by $8.66 billion in the year to June 2013, a decline in overall profitability of 6.5 per cent. A number of industries in WA experienced an overall improvement in profitability over that period however an overall decline was recorded in half of all industry sectors. Nevertheless all sectors as measured by the Gross Operating Surplus plus Gross Mixed Income measure produced by the ABS, remain profitable. We accept that this data reveals little about the profitability or otherwise of individual businesses. 88 We take into account that the superannuation contribution rate will increase a further 0.25 per cent in July 2014 which represents a direct cost to employers and which affects their capacity to increase wages. There is some evidence, particularly from CCIWA, to suggest that small business finds the economic environment challenging. 89 The evidence from the CCIWA Employee Relations Advice Centre indicates a rising trend in enquiries regarding redundancies although we consider the trend is not necessarily directly related to increases in the WA minimum or award wages. 90 We take into consideration the AHAWA submission that the highly labour intensive hospitality industry has experienced difficult conditions over recent periods, mainly because it operates on a 24 hour/7 day basis and to the increasing cost of operating a small business in hospitality as a result of the State Budget increases, including electricity, land tax, landfill levy and water rates. There are additional costs too for businesses in regional areas. 91 Both CCIWA and AHAWA included in their respective submissions that the effect of any increase to the minimum wage is compounded by the effect of penalty rates. We recognise the effect of penalty rates, and other award provisions, on overall costs to employers but do not consider them to be an issue directly relevant to the setting of the minimum wage. 92 When considering the setting of the WA minimum wage, the Commission will take into account the evidence and submissions about those industry sectors identified by CCIWA and AHAWA which are not experiencing strong conditions and which are likely to have employers and employees in the WA industrial relations jurisdiction who are award-reliant. The Minister’s submission suggests that employment trends in WA’s award-reliant industries differ widely. Of the two biggest employing award reliant industries, there appears to be a growing availability of work in the accommodation and food services sector, while employment in the retail trade sector, which employs nearly 10 per cent of WA's workforce, has declined by 1.4 per cent on average over the last year. The Fair Work Commission Annual Wage Review 2013-2014 93 Section 50A(3)(f) requires the Commission to take into consideration relevant decisions of other courts and tribunals. No person sought to persuade us that we were incorrect in our conclusion in the 2012 and 2103 State Wage Order decision that the Annual Wage Review of the FWC is a relevant and significant consideration. 94 In the 2013 State Wage Order decision at 69 we said: 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 651 We noted in our 2012 decision ([2012] WAIRC 00346 at [90]; (2012) 92 WAIG 557 at 566) that although s 284(1) of the FW Act does not require consideration of the state of the WA economy and the WA award framework which we are obliged by s 50A(3)(b) and (e) of the Act to take into consideration, we consider it significant that there is a substantial overlap between the considerations of FWC’s Minimum Wage Panel and the considerations we are obliged by s 50A(3) to take into account. Further, the timing of the Annual Wage Review and the date of operation of the minimum wage to be set by FWC is contemporaneous with the obligations on this Commission under s 50A of the Act. 95 We consider the FWC Annual Wage Review 2013-14, which increased the national minimum wage by 3.0 per cent from $622.20 to $640.90 per week from 1 July 2014, an increase of $18.70 per week, to be a relevant and significant consideration. CONCLUSIONS 96 The obligation imposed on the Commission requires a balancing of many differing considerations. The respective submissions before us each urge us to give preference, or greater weight, to their position to the exclusion of those who disagree with them. 97 The evidence is that the WA economy has grown above average for the last two years, however growth has moderated. Even though the WA economy is slowing, WA growth rates are at or above national rates. Growth is expected to be similar to, or stronger than, growth through much of the 1990s. Unemployment in WA has increased although it is still less than for Australia as a whole. While consumer spending increased in 2013, spending on hotels, cafes and restaurants, and recreation and culture, both dropped slightly. 98 We recognise, and have recognised previously, that increasing the WA minimum wage assists in meeting the needs of the low paid, contributes to improved living standards for employees, provides a wage increase to those employees who may be unable to reach an industrial agreement and assists in a limited way to lessen the gender pay gap in WA. The increase of 5.5 per cent to the WA minimum wage urged upon us by UnionsWA and WACOSS is supported by well-argued submissions. 99 However, that is not all we are obliged to consider. We also recognise, as we stated in the 2013 State Wage Order decision at 77, that the assessment of whether the minimum wage, and award wages generally, ensure WA has a system of fair wages and conditions of employment, and the need to provide fair wage standards in the context of living standards generally prevailing in the community, includes taking account of the national minimum wage operating in WA and the extent to which the WA minimum wage is higher. 100 The information and submissions from CCIWA, and in relation to the hospitality sector AHAWA, assist us to take into consideration the capacity of employers as a whole to bear the cost of increased wages, salaries, allowances and other remuneration. While we set a minimum wage to apply in WA, in practice it is a minimum wage applicable to certain sectors of the economy only and many employers directly affected are small businesses. 101 The extra cost to employers from 1 July 2014 from the increase to compulsory employee contributions to superannuation is an employment cost which we take into account and which moderates the increase we would otherwise award, as was the case in the FWC Annual Wage Review 2013-14 when it awarded a 3 per cent, or $18.40 per week, increase to the national minimum wage. This, together with the overall softening of the WA economy, in terms of projected economic growth, combined with lower wages outcomes as measured by the WPI, increasing unemployment, and the additional cost impost on business of the increase in the superannuation contribution rate from 1 July this year, cause us to adopt a cautious approach to any adjustment to the State minimum wage on this occasion. We consider the comment of the Minister of the importance of improving the performance and competitiveness of the WA economy to be timely. We need to be confident about the effect of the increase to be awarded upon the WA economy and, in particular, on the level of employment, inflation and productivity in WA. 102 An increase to the WA minimum wage should not have negative consequences for either employees or employers. We refer again to the conclusions of Professor Plowman in relation to the operation of the WA minimum wage in the period 1990 to 2005 which suggests that there has been little minimum wage effect on the economy as a whole, and weak effects on those sectors with higher levels of low paid employees. We consider the Minister’s view that an increase to the WA minimum and award wages in line with estimated actual CPI for the current financial year of 3 per cent, which would result in the current minimum wage of $645.90 per week being increased by $19.40 to $665.30 per week has much to commend it. It is a view not inconsistent with the conclusion of the Fair Work Commission when it adjusted the national minimum wage by 3 per cent. 103 A 3 per cent increase to the WA minimum wage is slightly less than the actual movement of the Perth CPI to the March quarter 2014. We again favour a flat-dollar increase rather than a percentage increase because:- (a) We consider a flat increase targets those employees who are on the minimum wage or slightly above it; and (b) A flat increase has the potential to result in a lower overall cost to an employer compared to a percentage adjustment because the increase is not compounded when applied to award rates of pay. 104 We have decided the proper application of all of the considerations in s 50A(3)(a) of the Act warrants an increase of $20.00 per week to the WA minimum wage. 105 Even with weaker conditions in the State’s economy and labour market the aggregate impact of the proposed increase is likely to be small. The number of employees directly affected is estimated at 2.2 per cent of the WA workforce and is thus relatively small. It is within the range of adjustments to the WA minimum wage which we have awarded in previous years and we are confident it will not have a negative effect on the WA economy and on the level of employment, inflation and productivity in WA. Even taking into account the extra cost to employers from 1 July 2014 from the increase to compulsory employee contributions to superannuation, we consider it to be within the capacity to pay of employers as a whole. 106 There was no direct evidence of issues having arisen from any compression of award relativities from past flat-dollar increases. We observe that it is open to any party to seek to vary an award to address issues which arise from any compression of relativities. 652 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. 107 We have referred earlier to our concern that s 50A(3) of the Act means it is likely that the WA minimum wage will remain higher than the national minimum wage over time. This decision inevitably results in the gap between the WA minimum wage and the national minimum wage increasing by $1.30 to $25.00 per week. For the reasons we have given earlier in this decision, we anticipate this being comprehensively addressed by those appearing in the 2015 State Wage Case. 108 The WA minimum wage to operate from the first pay period on or after 1 July 2014 will be $665.90 per week for adult employees. 109 We are obliged by s 50A(4) to ensure, to the extent possible, that there is consistency and equity in relation to the variation of awards. No person appearing submitted that we should not correspondingly adjust rates of wages paid under awards. Given that position, and the role of awards in providing fair wage standards, we will adjust award wages by $20.00 per week from the first pay period on or after 1 July 2014. The increase will apply only to employees who are paid the award wage; any wage paid over the award wage is able to be used to offset the increase. The Minimum Weekly Rate of Pay Applicable to Apprentices and Trainees 110 No person appearing submitted that we should vary the manner in which the increase to the WA minimum wage is usually applied to apprentices or trainees. We propose to apply the increase in this State Wage Order to adult apprentices, other apprentices and to trainees in accordance with the usual practice of the Commission. Industry/Skill Levels 111 As in previous State Wage Order proceedings, the Minister has provided the Commission with an updated industry/skill level classifications table based on advice from the Department of Education and Training. This updated table will be included in Attachment A to the 2014 State Wage order to issue. THE STATE WAGE PRINCIPLES 112 Section 50A(1)(d) of the Act obliges the Commission to set out a statement of principles to be applied and followed in relation to the exercise of jurisdiction to set the wages, salaries, allowances or other remuneration of employees or the prices to be paid in respect of their employment. No person suggested that any change is required to be made to the Statement of Principles set out in the 2013 State Wage Order. We set out the Statement of Principles July 2014 to issue. They are unchanged from the Statement of Principles July 2013 apart from the necessary and consequential amendments to Principle 9. MINUTE OF PROPOSED GENERAL ORDER 113 A minute of proposed General Order now issues. The Commission should be advised by 2.00 pm on Friday, 13 June 2014 whether or not a speaking to the minutes is requested. If a speaking to the minutes is necessary, it will be dealt with on the papers and written submissions should be received by 10.00 am on Monday, 16 June 2014. 2014 WAIRC 00485 2014 STATE WAGE ORDER PURSUANT TO SECTION 50A OF THE ACT WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION PARTIES COMMISSION'S OWN MOTION APPLICANT -v- (NOT APPLICABLE) RESPONDENT CORAM CHIEF COMMISSIONER A R BEECH ACTING SENIOR COMMISSIONER P E SCOTT COMMISSIONER S J KENNER COMMISSIONER S M MAYMAN DATE MONDAY, 16 JUNE 2014 FILE NO/S APPL 1 OF 2014 CITATION NO. 2014 WAIRC 00485 Result 2014 State Wage Order issued Representation Ms Ms M Williams and with her Ms C Purcell on behalf of the Hon Minister for Commerce Mr P Moss and with him Ms D Mead-Adams on behalf of the Chamber of Commerce and Industry of WA (Inc) Mr S Dane and with him Dr T Dymond on behalf of UnionsWA 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 653 General Order THE COMMISSION IN COURT SESSION in accordance with section 50A(1) of the Industrial Relations Act 1979 hereby makes the following General Order to be known as the 2014 State Wage order and thereby orders as follows: 1. THAT the 2014 State Wage order takes effect on 1 July 2014. 2. THAT the General Order which issued in matter No. APPL 1 of 2013 ((2013) 93 WAIG 476) is rescinded with effect on and from the commencement of the first pay period on or after 1 July 2014. 3. THAT the Minimum Weekly Rate of Pay applicable under section 12 of the Minimum Conditions of Employment Act 1993 to an employee who has reached 21 years of age and who is not an apprentice shall be $665.90 per week on and from the commencement of the first pay period on or after 1 July 2014. Apprentices 4. THAT the Minimum Weekly Rate of Pay applicable under section 14 of the Minimum Conditions of Employment Act 1993 to an apprentice whose training contract specifies they are undertaking an apprenticeship (“apprentice”) shall be: (a) In relation to that class of apprentice to whom an award or a relevant award applies where an employer-employee agreement is in force, the minimum weekly rate of pay shall be the rate of pay that applies to that class of apprentice under the award where the award applies or the relevant award where an employer-employee agreement is in force. (b) In relation to that class of apprentice to whom an award does not apply and to whom there is no relevant award to apply if an employer-employee agreement is in force or is subsequently entered into, the minimum weekly rate of pay shall be the rate of pay determined by reference to apprentices’ rates of pay in the Metal Trades (General) Award which operate on and from the commencement of the first pay period on or after 1 July 2014: 1 July 2014 Four Year Term First year $320.40 Second year $419.60 Third year $572.20 Fourth year $671.40 Three and a Half Year Term First six months $320.40 Next year $419.60 Next year $572.20 Final year $671.40 Three Year Term First year $419.60 Second year $572.20 Third year $671.40 5. THAT the Minimum Weekly Rate of Pay applicable under section 14 of the Minimum Conditions of Employment Act 1993 to an apprentice who has reached 21 years of age shall be $572.20 per week on and from the commencement of the first pay period on or after 1 July 2014. Trainees 6. THAT the Minimum Weekly Rate of Pay applicable under section 14 of the Minimum Conditions of Employment Act 1993 to an apprentice whose training contract specifies they are undertaking a traineeship (“trainee”) shall be: (a) In relation to that class of trainee to whom an award applies or a relevant award applies where an employer-employee agreement is in force, the minimum weekly rate of pay shall be the rate of pay that applies to that class of trainee under the award where an award applies or the relevant award where an employer-employee agreement is in force. (b) In relation to that class of trainee to whom an award does not apply and to whom there is no relevant award to apply if an employer-employee agreement is in force or is subsequently entered into, the minimum weekly rate of pay at the relevant Industry/Skill level as determined by reference to Attachment A hereunder, shall be the rate of pay based on the Metal Trades (General) Award contained in Table 1 as follows: Table 1 The following rates of pay apply on and from the commencement of the first pay period on or after 1 July 2014: Industry/Skill Level A School Leaver Year 10 $ Year 11 $ Year 12 $ 229.00 273.00 337.00 Plus 1 year out of school 273.00 337.00 389.00 654 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. Plus 2 years 337.00 389.00 455.00 Plus 3 years 389.00 455.00 521.00 Plus 4 years 455.00 521.00 Plus 5 years or more 521.00 Industry/Skill Level B School Leaver Year 10 $ Year 11 $ Year 12 $ 229.00 273.00 328.00 Plus 1 year out of school 273.00 328.00 374.00 Plus 2 years 328.00 374.00 440.00 Plus 3 years 374.00 440.00 503.00 Plus 4 years 440.00 503.00 Plus 5 years or more 503.00 Industry/Skill Level C School Leaver Year 10 $ Year 11 $ Year 12 $ 229.00 273.00 324.00 Plus 1 year out of school 273.00 324.00 364.00 Plus 2 years 324.00 364.00 408.00 Plus 3 years 364.00 408.00 458.00 Plus 4 years 408.00 458.00 Plus 5 years or more 458.00 (c) For any class of trainees under this subclause undertaking a traineeship that is not provided for in Attachment A, the minimum weekly rate of pay shall be the rate of pay in Industry/Skill Level C. Australian Qualification Framework (AQF) (d) For a trainee in this class undertaking an AQF4 traineeship the minimum weekly rate of pay shall be the weekly wage rate for an AQF3 trainee at Industry/Skill Levels A, B or C as applicable with the addition of 3.8% of that wage rate. Part-time and School-Based Trainees (e) This provision shall apply to trainees who undertake a traineeship on a part-time basis, or as a school- based trainee, by working less than full-time hours and by undertaking the approved training at the same or lesser training time than a full-time trainee. (i) School-based trainees will receive the following minimum hourly rates of pay, as for school leavers: Current year of schooling Wage levels Year 11 Year 12 A $7.18 $8.87 B $7.18 $8.63 C $7.18 $8.53 (ii) The minimum hourly rate of pay for part-time trainees shall be calculated by taking the full- time rates expressed in Clause 6(b) Table 1 and dividing that rate by 38 in accordance with section 10 of the Minimum Conditions of Employment Act 1993 (WA). (iii) As per the requirement under 60E(1)(iv) of the Vocational Education and Training Act 1996 (WA), any time spent by a trainee in performing his or her obligations under the training contract and in being trained and assessed under the contract, whether at the employer’s workplace or not, is to be taken for all purposes (including the payment of remuneration) to be time spent working for the employer. (f) In relation to that class of trainee to whom an award applies or a relevant award applies where an employer-employee agreement is in force and who has reached 21 years of age, the minimum weekly rate of pay is the rate of pay that applies to that class of trainee determined by reference to the highest weekly wage rate for the skill level relevant to the traineeship under the award or under the relevant award where an employer-employee agreement is in force. (g) In relation to that class of trainee to whom an award does not apply and to whom there is no relevant award to apply if an employer-employee agreement is in force or is entered into and who has reached 21 years of age, the minimum weekly rate of pay shall be that determined by reference to the highest weekly wage rate for the skill level relevant to the traineeship set out below: 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 655 On and from the commencement of the first pay period on or after 1 July 2014: Industry/Skill Level A $521.00 per week Industry/Skill Level B $503.00 per week Industry/Skill Level C $458.00 per week 7. THAT (a) The rates of pay applicable to trainees under the following awards be adjusted in accordance with the formula outlined in sub-clause (b). (i) AWU National Training Wage (Agriculture) Award 1994; (ii) Food Industry (Food Manufacturing or Processing) Award; (iii) Furniture Trades Industry Award; (iv) Licensed Establishments (Retail and Wholesale) Award 1979; (v) Metal Trades (General) Award; (vi) Motor Vehicle (Service Station, Sales Establishments, Rust Prevention and Paint Protection) Industry Award No. 29 of 1980; (vii) Printing Award; (viii) Sheet Metal Workers’ Award No. 10 of 1973; (ix) The Shop and Warehouse (Wholesale and Retail Establishments) State Award 1977; (x) Soft Furnishings Award; and (xi) Vehicle Builders' Award 1971. (b) Trainee rates be adjusted as follows: (i) Industry/Skill Level A, B and C top rates are increased by 80% of the arbitrated safety net adjustment. Each result is then rounded to the nearest dollar. (ii) All other Industry/Skill Level A, B and C rates are increased by a percentage of the unrounded result of the first step. Each result is then rounded to the nearest dollar. (iii) However, if an existing rate in Industry/Skill Level B or C is the same as an existing rate in Industry/Skill Level A or B, the former is adjusted in line with the latter rate in order to maintain consistency. Award Rates of Pay 8. THAT weekly rates of pay for adults in each award of the Commission, other than those set out in Schedule 1, be increased by $20.00 per week on and from the commencement of the first pay period on or after 1 July 2014 and that this increase shall be subject to absorption in the same terms as previous State Wage decisions. 9. THAT any increase to wages resulting from this State Wage order on and from the commencement of the first pay period on or after 1 July 2014, unless provided for elsewhere, shall be calculated on the basis that: (a) Where the award prescribes an adult fortnightly rate of pay, the fortnightly rate of pay is increased by $40.00 per fortnight. (b) Where the award prescribes an adult annual rate of pay, the annual rate of pay is increased by $1043.00 per annum. (c) Where the award prescribes an adult hourly rate of pay, the hourly rate of pay is increased by the amount of $20.00 per week divided by the number of ordinary hours of work prescribed by the relevant award for a full-time employee. Where applicable, casual loadings are to be calculated based on the hourly rate. 10. THAT where an award rate other than an adult rate is determined by reference to a percentage of the adult rate or some other formula, those award rates shall be varied on the basis of that percentage or formula to take into account the application of this State Wage order increase of $20.00 per week to the adult award wage on and from the commencement of the first pay period on or after 1 July 2014. 11. THAT increases under previous State Wage Case decisions prior to 1 July 2014, except those resulting from enterprise agreements, are not to be used to offset this State Wage order increase of $20.00 per week. 12. THAT on and from 1 July 2014 all awards which contain a Minimum Adult Award Wage Clause or provision be varied by: (a) Deleting the words “$645.90 per week payable on and from the first pay period on or after 1 July 2013” and inserting in lieu the words “$665.90 per week payable on and from the commencement of the first pay period on or after 1 July 2014”. (b) Deleting the words “$557.20 per week on and from the commencement of the first pay period on or after 1 July 2013” in the Adult Apprentices section and inserting in lieu the words “$572.20 per week on and from the commencement of the first pay period on or after 1 July 2014”. 656 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. (c) Deleting the date “1 July 2013” wherever it appears and inserting in lieu the date “1 July 2014”. (d) Deleting the words “2013 State Wage order decision” wherever they appear and inserting in lieu the words “2014 State Wage order decision”. Statement of Principles 13. THAT the Statement of Principles – July 2013 under the General Order in matter No. Appl 1 of 2013 be replaced by the Statement of Principles – July 2014 in Schedule 2. Publication 14. THAT the Registrar publish in the Western Australian Industrial Gazette and on the Commission's website the clauses of the awards varied by Clauses 8 and 9 of this State Wage order incorporating the amendments made. (Sgd.) A R BEECH, [L.S.] Commission In Court Session. ATTACHMENT A INDUSTRY / SKILL LEVEL A (as at April 2014) TITLE CERTIFICATE LEVEL Aeroskills Industry (MEA) Aeroskills (Aircraft Mechanical) II Aeroskills Engineer - Avionics Diploma Aeroskills Engineer – Mechanical Diploma Aviation (AVI) Aviation Flight Operations II & III Aviation Ground Operations & Service II & III Beauty (SIB) Beauty Services III Beauty Therapy IV Business Services (BSB) Business Administration III & IV Business II & III & IV Customer Contact III & IV Frontline Management IV Legal Administration III Legal Assistant IV Recordkeeping III & IV Marketing IV Manager Diploma Human Resources IV Medical Administration III Occupational Health and Safety Officer IV Union Recruitment and Organising IV Chemical, Hydrocarbons and Refining (PMA) Process Plant Advanced Technician Diploma Process Plant Operations II & III Process Plant Operations (Maintenance Engineering) II Process Plant Technology IV Civil Construction (RII) Bituminous Surfacing II & III Civil and Structural Engineering Draftsperson Diploma Civil Construction II & III Civil Construction Manager Diploma Civil Construction Senior Designer Advanced Diploma Civil Construction Senior Manager Advanced Diploma Civil Construction Supervisor IV Civil Construction Designer IV & Diploma Civil Foundations III Plant Operations III Pipelaying III Public Works Engineering Technical Officer ** Diploma Road Marking III Road Construction and Maintenance III Bridge Construction & Maintenance III Trenchless Technology III Tunnel Construction III Community Services (CHC) Career Development Officer III & IV 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 657 TITLE CERTIFICATE LEVEL Community Care Work III & IV Community Services (Aged Care Work) III & IV Community Services (Children’s Services) III Community Services (Youth Work) III Community Services Contact Work II Community Services Support Work II Community Services Work II & III & IV Disability Work III & IV Aboriginal & Islander Education Worker III & IV Aboriginal Child Care Work III Child Care Worker Diploma Before & After School Care Supervisor Diploma Bi-Lingual/Bi-Cultural Community Services Work II & III Christian Ministry Work III & IV & Diploma Out of School Hours Care Work IV Social Housing Work III & IV Protective Care Worker IV & Diploma Mental Health Work IV Youth Work IV Construction Plumbing and Services (CPC) Assistant Building Surveyor * Diploma Building and Construction Para Professional (Level 2) ** II Building and Construction Trade Trainee (Level 2) ** II Building Contract Administrator IV Building Maintenance II Building Supervisor/Construction Manager (Low Rise Commercial/Residential) IV Dogging III Drainage II General Construction II General Construction (Demolition) III Estimating (Housing) IV Marble and Granite Edge Mason II Site Management IV Scaffolding III Rigging III Steel fixing III Residential Drafting ** IV Correctional Services (CSC) Correctional Practice (Custodial) III & IV Correctional Practice III & IV Financial Services (FNS) Finance and Mortgage Broking IV Financial Services II, III & IV Financial Services (Accounts Clerical) III Financial Services (Financial Practice Support) IV Financial Services (Accounting) IV Financial Services (Superannuation) IV Financial Services Bookkeeping IV Insurance Services III & IV Personal Banker IV Drilling(RII) (now Resources and Infrastructure Industry) Drilling Operations II & IV Driller III Drilling (Mineral Exploration) II, III & IV Electricity Supply – Generation (UEP) ESI Generation (Electrical/Electronic) IV ESI Generation (Mechanical) IV ESI – Generation Operations Manager Diploma Electrical/Electronic Service Technician Diploma ESI Generation (Operations) III & IV ESI Generation (Systems Operations) IV Electricity Supply – Transmission, Distribution, Rail (UET) ESI - Power Systems Manager Diploma & Adv Diploma ESI Distribution (powerline) III 658 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. TITLE CERTIFICATE LEVEL Powerline Vegetation Control II Electrotechnology (UEE) Antennae Equipment II Appliance Servicing - Refrigerants II Business Equipment Servicing II Fire Alarms Servicing II Hazardous Areas IV Refrigeration and Air Conditioning Systems IV Remote Area Essential Service II Electrotechnology Systems Electrician IV Computer Assembly & Repair II Computer Systems IV Computer Systems Engineer Diploma & Adv Diploma Data and Voice Communications II Data and Voice Technician III Electrical Engineer Diploma & Adv Diploma Electronic Assembly II Electronics II Electronics and Communications IV Electronics & Communications Engineering Diploma & Adv Diploma Industrial Electronics and Control IV Renewable Energy II Security Assembly and Setup II Video and Audio Systems IV Winding and Assembly II Floristry (SFL) Floristry III & IV Food Processing (FDF) Food Processing III Food Processing (Wine) III Food Processing (Sales) III Pharmaceutical Manufacturing III Production Line Supervisor IV Gas Industry (UEG) Gas Industry Advanced Technician Advanced Diploma Gas Industry Operations IV Gas Industry Technician Diploma Information and Communication Technology (ICA) Information Technology II & III Information Technology (Networking) IV Information Technology (Websites) IV Information Technology (Multimedia) IV Information Technology (Support) IV Information Technology (Systems Analysis & Design) IV Laboratory Operations(MSL) Sampling and Measurement II Laboratory Skills III Laboratory Techniques IV Laboratory Technology Diploma Senior Laboratory Technician Advanced Diploma Local Government (other than operational works) (LGA) Local Government II & III Local Government Administration IV Local Government Planning IV Ranger IV Trainee Community Ranger III Manufacturing (MSA) Aluminium Window and Frames II Aluminium Windows and Frames Manufacturing II Competitive Systems and Practices - Manager Diploma Glass Processor II Manufacturing Equipment Operation III Manufacturing Team Leader IV Manufacturing Technician - Metallurgy Diploma 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 659 TITLE CERTIFICATE LEVEL Manufacturing Technologist - Metallurgy Adv Diploma Process Support II & III Process Manufacturing III Manufacturing Equipment Operation III Manufacturing Team Leader IV Surface Preparation and Coatings Application III Metal and Engineering (MEM) Engineering Assistant Advanced Diploma Engineering Production II Engineering Technician III Draftsperson Diploma Engineering (Advanced Trade) Diploma Engineering – Higher Engineering Trade IV Metallurgical Technician Diploma & Adv Diploma Production Systems (Foundry) III Production Systems (General Engineering) III Production Systems (Surface Finishing) III Metalliferous Mining (RII) Underground Metalliferous Mining II & III & IV Underground Metalliferous Mining Manager Diploma Library, Information and Cultural Services (CUL) Library and Information Services II & III & IV Museum Practice II & III Plastics, Rubber and Cablemaking (PMB) Plastics III Polymer Technology IV Plastics – Film III Plastics – Blow Moulding III Plastics – Extrusion III Plastics – Fabrication III Plastics – Injection Moulding III Plastics – Thermoforming III Plastics – Rotational Moulding III Plastics – Polystyrene III Rubber III Process Manufacturing (Rubber - Injection Moulding) III Rubber - Belt Splicing III Rubber – Rubber Lining III Process Manufactured Mineral Products III & IV Public Safety (PUA) Firefighting Operations III Policing Diploma Public Sector (PSP) Government II & III & IV Government – Financial Services Diploma Government – Fraud Controller IV Government – Human Resources Diploma Government – Investigator IV, Diploma Property Services (CPP) Property Management IV Spatial Services Technician Diploma Surveyor Diploma Retail (including Wholesale and Community Pharmacy) (SIR) Business to Business Sales Officer III Retail III Retail Management IV Community Pharmacy III & IV Integrated Telecommunications (ICT) Telecommunications II & III Telecommunications Cabling II Telecommunications (Access Network) II Telecommunications (Cabling & Customer Premises Equipment) III Telecommunications Engineering IV Textile Clothing and Footwear (LMT) 660 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. TITLE CERTIFICATE LEVEL Textile Fabrication III Textile Production III Laundry Operations III Clothing Production III & IV Dry Cleaning Operations III Early Stage Wool Processing III Leather Production III Footwear Repair III Tourism, Hospitality and Events ( SIT: CUE) Assistant Manager (Resorts) IV Events Technical III Hospitality (Accommodation Services) III Hospitality (Food and Beverage) III Hospitality – (Asian Cookery) II Hospitality – (Catering Operations) II & III Hospitality – (Commercial Cookery) II Hospitality – (Patisserie) II Hospitality – (Operations) II & III Hospitality Gaming III Hospitality - Supervision IV International Retail Travel Sales III Tourism III Tourism (Attractions and Theme Parks) II Tourism (Guiding) II & III & IV Tourism (Sales/Office Operations) II Tourism (Visitor Information Services) III Travel and Tourism Officer IV Venues & Events (Customer Service) III Costume for Performance IV Live Production Theatre & Events II Entertainment (Front of House) II Live Production Theatre & Events (Technical Operations) Lighting III & IV Live Production Theatre & Events (Technical Operations) Vision Systems III & IV Live Production Theatre & Events (Technical Operations) Audio III & IV Manager (Resorts) Diploma Transport and Distribution (TLI) Driving operations - heavy recovery driver IV Driving operations - tanker driver IV Freight Forwarding Operator III Integrated Rating III Logistics Operations III Transport and Distribution (Marine Engine Driving) III Transport and Distribution (Maritime Operations) III Mobile Cranes III Operations Supervisor - Freight Forwarding IV Rail Infrastructure III Rail Operations III & IV Road Transport III & IV Stevedoring III Warehousing & Storage III & IV Water Industry(NWP) Water Operations III & IV * Cadetship ** Accredited Course Qualification - not part of National Training Package INDUSTRY / SKILL LEVEL B (as at April 2014) TRAINEESHIP TITLE CERTIFICATE LEVEL Animal Care & Management (ACM ) Veterinary Nursing IV Animal Control and Regulation IV Animal Studies II Animal Technology III Captive Animals III 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 661 TRAINEESHIP TITLE CERTIFICATE LEVEL Companion Animal Services III & IV Asset Maintenance (CPP) Asset Maintenance (Cleaning Operations) II & III Asset Maintenance (Waste Management) II & III Asset Maintenance (Fire Protection Equipment) II & III Pest Management Technician III Australian Meat Industry (MTM) Meat Processing (Abattoirs) II Meat Processing (Boning) III Meat Processing (Food Services) II & III Meat Processing (General) III Meat Processing (Rendering) III Meat Processing (Smallgoods) II & III Meat Processing (Slaughtering) III Meat Processing (Leadership) IV Meat Processing (Quality Assurance) IV Meat Inspector III Meat Inspector / Quality Assurance Officer IV Production Manager (Meat Processing) Diploma Automotive Industry Manufacturing (MSA) Recreational Vehicle Production Assistant II Recreational Vehicle Production Team Leader III Automotive Industry/Retail Service and Repair (AUR) Automotive (Administration) II & III Automotive Administration (Rental Vehicles) III Automotive Electrical Technology II Automotive Management IV & V Automotive (Mechanical) II Automotive (Sales) II & III Automotive (Vehicle Body) II Automotive Aftermarket Warehousing Distribution Operations II & III Bicycles II Marine II Outdoor Power Equipment II Vehicle Servicing II Automotive Retail Service and Repair (Tyre Fitting) III Mechanical Driveline II Mechanical Engine Overhaul II Mechanical Hydraulics II Mechanical Machine Assembly II Mechanical Transmissions II Beauty (SIB) Make-Up Services II Nail Technology II Retail Cosmetic Services II Caravan Industry (SIT) Caravan Park Operations II & III Civil Construction (RII) Civil Construction for entry level Indigenous Workers I Community Recreation Industry (SIS) Community Recreation II & III Extractive Industries(RII) Extractive Industries Senior Manager Advanced Diploma Field/Exploration Operations II Minerals Processing Diploma Resource Processing II & III & IV Surface Extraction Operations II & III & IV Surface Operations Manager Diploma Floristry (SFL) Floristry II Food Processing Industry (FDF) Food Processing II Food Processing (Sales) II Food Processing (Wine) II 662 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. TRAINEESHIP TITLE CERTIFICATE LEVEL Forest and Forest Products Industry (FPI) Forest Growing and Management II & III Harvesting & Haulage II & III Sawmilling and Processing II & III Timber Manufactured Products II & III Timber Merchandising II & III Timber Fabrication Detailer IV Timber Fabrication Production Manager Diploma Timber Fabrication Detailing Manager Diploma Timber Fabrication Estimator or Jig Setter III Timber Fabrication Production Hand II Timber Fabrication Production Specialist Or Leading Hand IV Wood Panel Products II & III Production Technician (Timber) IV Forester (Operations) IV Furnishing () Furnishing (Flooring) II Furnishing (Polishing) II Furnishing (Upholstery) II Furniture Making II Glass and Glazing II Interior Design – Retail Services III Picture Framing III Soft Furnishing II & III Designer (Kitchens, Bathrooms and Interior Spaces) * IV Gas Industry (UEG) Gas Industry Advanced Technician Adv Diploma Gas Industry Technician Diploma Gas Industry Operations II & III & IV Health (HLT) Aboriginal Environmental Health II & III Admissions Clerk III Assistant Aboriginal and/or Torres Strait Islander Health Care Worker II Aboriginal and/or Torres Strait Islander Health Care Worker III Senior Aboriginal and/or Torres Strait Islander Health Care Worker IV Allied Health Assistance III & IV Client/Patient Support Services III Coding Clerk IV Dental Assisting III & IV Health Practice Manager Diploma Health Service Assistant III Health Support Services II & III Optical Dispensing IV Sterilization Services III Pathology Collection III Local Government (Operational Works) (LGA) Local Government (Operational Works) Diploma Metal and Engineering (MEM) Engineering – Production II Aluminium Windows and Frames Manufacturing II Outdoor Recreation (SIS) Outdoor Recreation III & IV Community Recreation II & III Sport and Recreation II & III & IV Plastics, Rubber and Cablemaking (PMB: PMC) Process Manufacturing (Cablemaking) II Plastics II Plastics – Film II Plastics – Blow Moulding II Plastics – Composites II Plastics – Extrusion II Plastics – Fabrication II Plastics – Injection Moulding II Plastics – Thermoforming II 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 663 TRAINEESHIP TITLE CERTIFICATE LEVEL Plastics – Rotational Moulding II Plastics – Polystyrene II Rubber II Rubber – Rubber Lining II Process Manufacturing (Rubber – Injection Moulding) II Rubber - Belt Splicing II Process Manufactured Mineral Products II Process Plant Operations REMOVED FROM B – SHOULD BE LEVEL A II Printing and Graphic Arts (ICP) Desktop Publishing II Graphic Arts Services II Print Production Support II Printing and Graphic Arts (Instant Print) II Printing and Graphic Arts (Multimedia) III Screen Printing II Property Services (CPP) Property Management IV Property Services (operations) III Technical Security II & III Security Operations III Spatial Services Technician Diploma Strata / Facilities Manager IV Surveying IV & Diploma Retail (SIR) (including wholesale and Community Pharmacy) Retail II Community Pharmacy II Salon Assistant II Warehouse II Screen and Media (CUF) Broadcasting (Radio) II & III & IV Broadcasting (Remote Area Operations) III Broadcasting (Television) III & IV Screen II & III & IV Multimedia II & III & IV Sport, Fitness and Recreation (SIS) Fitness III & IV Sport (Career Orientated Participation) II &III Community Activity Programs III Textile, Clothing and Footwear (LMT) Dry Cleaning Operations II Footwear Repair II Laundry Operations II Textile Production (Complex or Multiple Processes) II Transport and Logistics (TLI) Furniture Removalist II Transport and Distribution (Aviation Flight Operations) II Aviation Ground Operations and Service II Transport and Distribution (Marine Engine Driving) II Transport and Distribution (Maritime Operations) II Transport & Distribution (Maritime Operations – Coxswain) II Rail Infrastructure II Rail Operations II Road Transport II Stevedoring II Logistics Operations II Warehousing & Storage II Visual Arts, Craft and Design (CUV) Arts Administrator III Water Industry(NWP) Water Operations II * Cadetship ** Accredited Course Qualification - not part of National Training Package 664 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. INDUSTRY / SKILL LEVEL C (as at April 2014) TRAINEESHIP TITLE CERTIFICATE LEVEL Amenity Horticulture (AHC) Horticulture II & III & IV Horticulture (Arboriculture) II & III & IV Horticulture (Floriculture) II & III & IV Horticulture (Landscape) II & IV Horticulture (Retail Nursery) II & IV Horticulture (Wholesale Nursery) II & IV Horticulture (Parks and Gardens) II & IV Horticulture (Turf) II & IV Conservation and Land Management (AHC) Conservation and Land Management II & III & IV Funeral Services (SIF) Funeral Services (Embalmer) IV Funeral Services IV Gravedigging, Grounds and Maintenance III Cemetery and Crematorium Operations III Music (CUS) Music III & IV Music Industry (Foundation) II Music Industry (Technical Production) III & IV Music Industry (Business) III Racing Industry (RGR) Racing - Stablehand II Racing - Advanced Stablehand III Racing - Trackrider III Racing - Jockey IV Racing (Harness Driver) IV Rural Production (AHC) Agriculture II & III & IV Agriculture (Beef Cattle Production) III & IV Agriculture (Dairy) III Agriculture (Goat Production) III Agriculture (Grain Production) III Agriculture (Horse Breeding) III Horticulture (Production) II & III & IV Agriculture (Pig Production) III Agriculture (Sheep and Wool) III Agriculture (Rural Merchandising) III Advanced Wool Handler III Irrigation II & III & IV Rural Operations II & III Shearing II & III & IV Wool Handling II Wool Clip Preparation III Wool Classing IV Seafood Industry (SFI) Seafood Processing II & III Seafood Sales and Distribution II & III Seafood (Aquaculture) II & III & IV Seafood (Fishing Operations) II & III Seafood (Fisheries Compliance) III * Cadetship ** Accredited Course Qualification - not part of National Training Package Schedule 1 LIST OF AWARDS NOT SUBJECT TO THIS GENERAL ORDER Awards that do not contain wages and are therefore excluded: Alcoa Long Service Leave Conditions Award, 1980 Catering Employees' (North West Shelf Project) Long Service Leave Conditions Award 1991 Catering Workers' (North Rankin A) Long Service Leave Conditions Award No. A 40 of 1987 The Contract Cleaning (F.M.W.U.) Superannuation Award 1988 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 665 Health Care Industry (Private) Superannuation Award 1987 Iron and Steel Industry Workers' (Australian Iron and Steel Pty. Ltd.) Production Bonus Scheme Award Miscellaneous Government Conditions and Allowances Award No A 4 of 1992 Miscellaneous Workers' (Security Industry) Superannuation Award, 1987 Ngala Superannuation Award, 1989 Printing Industry Superannuation Award 1991 Public Service Allowances (Fisheries and Wildlife Officers) Award 1990 Supported Employees Industry Award The Swan Brewery Company Limited (Superannuation) Award 1987 West Australian Petroleum Pty Ltd Long Service Leave Conditions Award 1991 Woodside Offshore Petroleum Pty. Ltd. Long Service Leave Conditions Award, 1984 Worsley Alumina Pty. Ltd. Long Service Leave Conditions Award, 1984 Awards that have certain parts quarantined: Clerks (Racing Industry - Betting) Award 1978 – Schedule C The Iron Ore Production & Processing (Locomotive Drivers) Award 2006 – Clause 2.1 Iron Ore Production & Processing (Locomotive Drivers Rio Tinto Railway) Award 2006 – Clause 6 Shearing Contractors' Award of Western Australia 2003 – Clause 4.2 Awards containing transitional provisions to which the General Order does not apply: Clothing Trades Award 1973 – Clause 18 Department for Community Development (Family Resource Workers, Welfare Assistants and Parent Helpers) Award 1990 – Schedule F Education Department Ministerial Officers Salaries Allowances and Conditions Award 1983 No. 5 of 1983 – Schedule I Egg Processing Award 1978 – Appendix 4 Electorate Officers Award 1986 – Schedule G Family Day Care Co-Ordinators' and Assistants' Award, 1985 - Schedule C Government Officers (Social Trainers) Award 1988 – Schedule K Government Officers (Insurance Commission of Western Australia) Award, 1987 – Schedule D Government Officers Salaries, Allowances and Conditions Award 1989 - Schedule P Juvenile Custodial Officers’ Award – Schedule G Public Service Award 1992 – Schedule M Schedule 2 STATEMENT OF PRINCIPLES – July 2014 1. Application of the Statement of Principles 1.1 This Statement of Principles is to be applied and followed when the Commission is making or varying an award or making an order in relation to the exercise of the jurisdiction under the Act to set the wages, salaries, allowances or other remuneration of employees or the prices to be paid in respect of their employment. 1.2 In these Principles, wages, salaries, allowances or other remuneration of employees or the prices to be paid in respect of employment will be referred to as “wages”. 1.3 In making a decision in respect of any application brought under these Principles the primary consideration in all cases will be the merits of the application in accordance with equity, good conscience and the substantial merits of the case pursuant to section 26(1)(a) of the Act. 1.4 These Principles do not have application to Enterprise Orders made under section 42I of the Act or to applications made under section 40A of the Act to incorporate industrial agreement provisions into an award by consent. 2. (deleted) 3. When an Award may be varied or another Award made without the claim being regarded as above or below Minimum Award Conditions 3.1 In the following circumstances wages in an award, may on application, be varied or another award made without the application being regarded as a claim for wages above or below the minimum award conditions: 3.1.1 To include previous State Wage Case increases in accordance with Principle 4. 3.1.2 To incorporate test case standards in accordance with Principle 5. 666 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. 3.1.3 To adjust allowances and service increments in accordance with Principle 6. 3.1.4 To adjust wages pursuant to work value changes in accordance with Principle 7. 3.1.5 To adjust wages for total minimum adjustments in accordance with Principle 8. 3.1.6 To vary an award to include the minimum wage in accordance with Principle 9. 4. Previous State Wage Case Increases 4.1 Wage increases available under previous State Wage Case Decisions such as structural efficiency adjustments, and previous arbitrated safety net adjustments will, on application, still be accessible. 4.2 Minimum rates adjustments may also be progressed under this Principle. 5. Test Case Standards 5.1 Test Case Standards in respect of wages established and/or revised by the Commission may be incorporated in an award. Where disagreement exists as to whether a claim involves a est case standard, those asserting that it does, must make an application and justify its referral. The Chief Commissioner will decide whether the claim should be dealt with by a Commission in Court Session. 6. Adjustment of Allowances and Service Increments 6.1 Existing allowances which constitute a reimbursement of expenses incurred may be adjusted from time to time where appropriate to reflect the relevant change in the level of such expenses. 6.2 Adjustment of existing allowances which relate to work or conditions which have not changed and of service increments will be determined in each case in accordance with State Wage Case Decisions. 6.3 Allowances which relate to work or conditions which have not changed and service increments may be adjusted as a result of the State Wage order in Principle 8. 6.4 In circumstances where the Commission has determined that it is appropriate to adjust existing allowances relating to work or conditions which have not changed and service increments for a monetary safety net increase, the method of adjustment shall be that such allowances and service increments should be increased by a percentage derived as follows: divide the monetary safety net increase by the rate of pay for the key classification in the relevant award immediately prior to the application of the safety net increase to the award rate and multiply by 100. 6.5 Existing allowances for which an increase is claimed because of changes in the work or conditions will be determined in accordance with the relevant provisions of Principle 7. 6.6 New allowances to compensate for the reimbursement of expenses incurred may be awarded where appropriate having regard to such expenses. 6.7 Where changes in the work have occurred or new work and conditions have arisen, the question of a new allowance, if any, shall be determined in accordance with the relevant Principles of this Statement of Principles. The relevant Principles in this context may be Principle 7 and Principle 11. 6.8 New service increments may only be awarded to compensate for changes in the work and/or conditions and will be determined in accordance with the relevant parts of Principle 7 of this Statement of Principles. 7. Work Value Changes 7.1 Applications may be made for a wage increase under this Principle based on changes in work value. 7.2 Changes in work value may arise from changes in the nature of the work, skill and responsibility required or the conditions under which work is performed. Changes in work by themselves may not lead to a change in wage rates. The strict test for an alteration in wage rates is that the change in the nature of the work should constitute such a significant net addition to work requirements as to warrant the creation of a new classification or upgrading to a higher classification. 7.3 In addition to meeting this test a party making a work value application will need to justify any change to wage relativities that might result not only within the relevant internal award classifications structure but also against external classifications to which that structure is related. There must be no likelihood of wage “leapfrogging” arising out of changes in relative position. 7.4 These are the only circumstances in which rates may be altered on the ground of work value and the altered rates may be applied only to employees whose work has changed in accordance with this provision. 7.5 In applying the Work Value Changes Principle, the Commission will have regard to the need for any alterations to wage relativities between awards to be based on skill, responsibility and the conditions under which work is performed. 7.6 Where new or changed work justifying a higher rate is performed only from time to time by persons covered by a particular classification or where it is performed only by some of the persons covered by the classification, such new or changed work should be compensated by a special allowance which is payable only when the new or changed work is performed by a particular employee and not by increasing the rate for the classification as a whole. 7.7 The time from which work value changes in an award should be measured is any date that on the evidence before the Commission is relevant and appropriate in the circumstances. 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 667 7.8 Care should be exercised to ensure that changes which were or should have been taken into account in any previous work value adjustments or in a structural efficiency exercise are not included in any work evaluation under this provision. 7.9 Where the tests specified in 7.2 and 7.3 are met, an assessment will have to be made as to how that alteration should be measured in money terms. Such assessment should normally be based on the previous work and the nature and extent of the change in work. 7.10 The expression “the conditions under which the work is performed” relates to the environment in which the work is done. 7.11 The Commission should guard against contrived classifications and over-classification of jobs. 7.12 Any changes in the nature of the work, skill and responsibility required or the conditions under which the work is performed, taken into account in assessing an increase under any other provision of these Principles, shall not be taken into account in any claim under this provision. 8. Total Minimum Rate Adjustments 8.1 Where the minimum rates adjustment process in an award has been completed, the Commission may consider an application for the base rate, supplementary payment and State Wage order adjustments to be combined so that the award specifies only the total minimum rate for each classification. 8.2 By consent of all parties to an award, where the minimum rates adjustment has been completed, award rates may be expressed as hourly rates or weekly rates. In the absence of consent, a claim that award rates be so expressed may be determined by arbitration. 8.3 The State Wage order arising from this decision is $20.00 per week. 9. Minimum Adult Award Wage 9.1 A minimum adult award wage clause will be required to be inserted in all new awards. 9.2 The minimum adult wage clause will be as follows – MINIMUM ADULT AWARD WAGE No employee aged 21 or more shall be paid less than the minimum adult award wage unless otherwise provided by this clause. The minimum adult award wage for full-time employees aged 21 or more is $665.90 per week payable on and from the commencement of the first pay period on or after 1 July 2014. The minimum adult award wage is deemed to include all State Wage order adjustments from State Wage Case Decisions. Unless otherwise provided in this clause adults employed as casuals, part-time employees or piece workers or employees who are remunerated wholly on the basis of payment by result shall not be paid less than pro rata the minimum adult award wage according to the hours worked. Employees under the age of 21 shall be paid no less than the wage determined by applying the percentage prescribed in the junior rates provision in this award to the minimum adult award wage. The minimum adult award wage shall not apply to apprentices, employees engaged on traineeships or Jobskill placements or employed under the Commonwealth Government Supported Wage System or to other categories of employees who by prescription are paid less than the minimum award rate, provided that no employee shall be paid less than any applicable minimum rate of pay prescribed by the Minimum Conditions of Employment Act 1993. Liberty to apply is reserved in relation to any special category of employees not included here or otherwise in relation to the application of the minimum adult award wage. Subject to this clause the minimum adult award wage shall – Apply to all work in ordinary hours. Apply to the calculation of overtime and all other penalty rates, superannuation, payments during any period of paid leave and for all purposes of this award. Minimum Adult Award Wage The rates of pay in this award include the minimum weekly wage for employees aged 21 or more payable under the 2014 State Wage order decision. Any increase arising from the insertion of the minimum wage will be offset against any equivalent amount in rates of pay received by employees whose wages and conditions of employment are regulated by this award which are above the wage rates prescribed in the award. Such above award payments include wages payable pursuant to enterprise agreements, consent awards or award variations to give effect to enterprise agreements and over award arrangements. Absorption which is contrary to the terms of an agreement is not required. Increases under previous State Wage Case Principles or under the current Statement of Principles, excepting those resulting from enterprise agreements, are not to be used to offset the minimum wage. 668 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. Adult Apprentices Notwithstanding the provisions of this clause, an apprentice, 21 years of age or more, shall not be paid less than $572.20 per week on and from the commencement of the first pay period on or after 1 July 2014. The rate paid in the paragraph above to an apprentice 21 years of age or more is payable on superannuation and during any period of paid leave prescribed by this award. Where in this award an additional rate is expressed as a percentage, fraction or multiple of the ordinary rate of pay, it shall be calculated upon the rate prescribed in this award for the actual year of apprenticeship. Nothing in this clause shall operate to reduce the rate of pay fixed by the award for an adult apprentice in force immediately prior to 5 June 2003. 10. Making or Varying an Award or issuing an Order which has the effect of varying wages or conditions above or below the award minimum conditions 10.1 An application or reference for a variation in wages which is not made by an applicant under any other Principle and which is a matter or concerns a matter to vary wages above or below the award minimum conditions may be made under this Principle. This may include but is not limited to matters such as equal remuneration for men and women for work of equal or comparable value. 10.2 Claims may be brought under this Principle irrespective of whether a claim could have been brought under any other Principle. 10.3 All claims made under this Principle will be referred to the Chief Commissioner for him to determine whether the matter should be dealt with by a Commission in Court Session or by a single Commissioner. 11. New Awards (including interim Awards) and Extensions to an Existing Award 11.1 The following shall apply to the making of wages in a new award (including an interim award) and an extension to an existing award: 11.1.1 In the making of wages in an interim award the Commission shall apply the matters set out in section 36A of the Act. 11.1.2 A new award (including an interim award) shall have a clause providing for the minimum award wage [see Principle 9] included in its terms. 11.1.3 In the extension of wages in an existing award to new work or to award-free work the wages applicable to such work shall ensure that any award or order made: (1) meets the need to facilitate the efficient organisation and performance of work according to the needs of an industry and or enterprises within it, balanced with fairness to the employees in the industry or enterprises; and (2) sets fair wages. 12. Economic Incapacity 12.1 Any respondent or group of respondents to an award may apply to reduce and/or postpone the variation which results in an increase in labour costs under this Statement of Principles on the ground of very serious or extreme economic adversity. The merit of such application shall be determined in the light of the particular circumstances of each case and any material relating thereto shall be rigorously tested. The impact on employment at the enterprise level of the increase in labour costs is a significant factor to be taken into account in assessing the merit of an application. It will then be a matter for the Chief Commissioner to decide whether it should be dealt with by a Commission in Court Session. 13. Duration 13.1 This Statement of Principles will operate until reviewed under s 50A(1)(d) of the Act. 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 669 2014 WAIRC 00518 RESCIND GENERAL ORDER NO. 7/2013 AND ISSUE A NEW GENERAL ORDER WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION PARTIES COMMISSION'S OWN MOTION APPLICANT -v- (NOT APPLICABLE) RESPONDENT CORAM CHIEF COMMISSIONER A R BEECH ACTING SENIOR COMMISSIONER P E SCOTT COMMISSIONER S M MAYMAN DATE THURSDAY, 19 JUNE 2014 FILE NO/S APPL 11 OF 2014 CITATION NO. 2014 WAIRC 00518 Result General Order issued General Order HAVING heard Mr A Gardos on behalf of the Honourable Minister for Commerce; Ms D Mead-Adams and with her Ms L Pantelis on behalf of the Chamber of Commerce and Industry of Western Australia (Inc); and Dr T Dymond on behalf of UnionsWA, the Commission in Court Session, pursuant to the powers conferred on it by the Industrial Relations Act 1979 (WA) hereby orders – (1) THAT each award, industrial agreement or order cited in Schedule A of this General Order be varied by substituting for the location allowances provisions contained in each such award, industrial agreement or order the location allowance provisions in Schedule B of this General Order. (2) THAT each such variation shall have effect from the beginning of the first pay period to commence on or after the first day of July 2014. (3) THAT this General Order replace the General Order in Matter No 7 of 2013 which thereby shall be rescinded. (Sgd.) A R BEECH, [L.S.] Commission In Court Session. 670 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. LOCATION ALLOWANCES SCHEDULE A Title of Award or Order Clause No. Aerated Water and Cordial Manufacturing Industry Award 1975 31 Aged and Disabled Persons Hostels Award, 1987 28 Air Conditioning and Refrigeration Industry (Construction and Servicing) Award No. 10 of 1979 20 Animal Welfare Industry Award 14 Artworkers Award 20 The Australian Workers Union Road Maintenance, Marking and Traffic Management Award 2002 5.14 Bakers’ (Country) Award No. 18 of 1977 20 Breadcarters (Country) Award 1976 27 Building Trades Award 1968 24 Building Trades (Construction) Award 1987 Appendix A Child Care (Out of School Care - Playleaders) Award 10 Children's Services (Private) Award 2006 12 Cleaners and Caretakers Award, 1969 3.6 Cleaners and Caretakers (Car and Caravan Parks) Award 1975 22 Clerks' (Accountants' Employees) Award 1984 23 Clerks (Commercial, Social and Professional Services) Award No. 14 of 1972 27 Clerks' (Control Room Operators) Award 1984 25 Clerks' (Credit and Finance Establishments) Award 31 Clerks' (Customs and/or Shipping and/or Forwarding Agents) Award 30 Clerks' (Hotels, Motels and Clubs) Award 1979 22 Clerks' (Taxi Services) Award of 1970 28 Clerks (Timber) Award 31 Clerks (Unions and Labor Movement) Award 2004 37 Clerks' (Wholesale & Retail Establishments) Award No. 38 of 1947 28 Clothing Trades Award 1973 22 Contract Cleaners Award, 1986 24 Contract Cleaners' (Ministry of Education) Award 1990 21 Crisis Assistance, Supported Housing Industry - Western Australian Interim Award 2011 17.6 Dental Technicians' and Attendant/Receptionists’ Award, 1982 27 The Draughtsmen's, Tracers', Planners' and Technical Officers' Award 1979 32 Dry Cleaning and Laundry Award 1979 22 Earth Moving and Construction Award 25 Electrical Contracting Industry Award R 22 of 1978 22 Electrical Trades (Security Alarms Industry) Award 1980 19 Electronics Industry Award No. A 22 of 1985 24 Engine Drivers' (Building and Steel Construction) Award No. 20 of 1973 25 Engine Drivers' (General) Award 20 Enrolled Nurses and Nursing Assistants (Private) Award No. 8 of 1978 23 Foremen (Building Trades) Award 1991 15 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 671 Title of Award or Order—continued Clause No. Funeral Directors' Assistants' Award No. 18 of 1962 33 Furniture Trades Industry Award 46 Gate, Fence and Frames Manufacturing Award 21 Golf Link and Bowling Green Employees' Award, 1993 28 Hairdressers Award 1989 31 The Horticultural (Nursery) Industry Award, No. 30 of 1980 6 Industrial Spraypainting and Sandblasting Award 1991 19 Independent Schools Administrative and Technical Officers Award 1993 22 Independent Schools (Boarding House) Supervisory Staff Award 22 Independent Schools Psychologists and Social Workers Award 21 Independent Schools' Teachers' Award 1976 18 Landscape Gardening Industry Award 18 Licensed Establishments (Retail and Wholesale) Award 1979 31 Lift Industry (Electrical and Metal Trades) Award, 1973 20 Local Government Officers’ (Western Australia) Interim Award 2011 17.2 Materials Testing Employees' Award, 1984 12 Meat Industry (State) Award, 2003 21(1) Metal Trades (General) Award 5.6 Motel, Hostel, Service Flats and Boarding House Workers' Award 42 Motor Vehicle (Service Station, Sales Establishments, Rust Prevention and Paint Protection), Industry Award No. 29 of 1980 17 Municipal Employees (Western Australia) Interim Award 2011 19.6 Nurses' (Day Care Centres) Award 22 Nurses (Dentists Surgeries) Award 1977 23 Nurses (Doctors Surgeries) Award 1977 22 Nurses’ (Independent Schools) Award 20 Nurses' (Private Hospitals) Award 30 Pastrycooks' Award No. 24 of 1981 11 Pest Control Industry Award 14 Photographic Industry Award, 1980 29 Private Hospital Employees' Award, 1972 40 Quarry Workers' Award, 1969 19 Radio and Television Employees' Award 23 Restaurant, Tearoom and Catering Workers' Award 41 Retail Pharmacists’ Award 2004 5.2 The Rock Lobster and Prawn Processing Award 1978 26 School Employees (Independent Day & Boarding Schools) Award, 1980 31 Security Officers' Award 20(3) Sheet Metal Workers' Award No. 10 of 1973 26 The Shop and Warehouse (Wholesale and Retail Establishments) State Award 1977 39 Social and Community Services (Western Australia) Interim Award 2011 18.10 672 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. Title of Award or Order—continued Clause No. Teachers' Aides' (Independent Schools) Award 1988 17 Timber Yard Workers Award No. 11 of 1951 28 Transport Workers (General) Award No. 10 of 1961 5.13 Transport Workers (Mobile Food Vendors) Award 1987 18 Transport Workers' (North West Passenger Vehicles) Award, 1988 28 Transport Workers' (Passenger Vehicles) Award No. R 47 of 1978 24 Western Australian Surveying (Private Practice) Industry Award, 2003- The 8.4 Title of Industrial Agreements Clause No. Altone Continental and SDA Agreement 2002 32 Beverley Four Square Supermarket and SDA Agreement 2002 32 Bindoon General Store and SDA Agreement 2002 32 Bridgetown Mini Mart and SDA Agreement 2002 32 Broadwater Mini Mart and SDA Agreement 2002 32 Cadoux Traders and SDA Agreement 2002 32 Caversham Store and SDA Agreement 2002 32 Cherries Fine Food Super Mart and SDA Agreement 2002 32 Chicken Treat Dunsborough SDA Agreement 2001 34 Chicken Treat Katanning SDA Agreement 2001 34 Chicken Treat Narrogin SDA Agreement 2001 34 Chicken Treat Padbury SDA Agreement 2001 34 Chicken Treat Rockingham SDA Agreement 2001 34 Chidlow Growers Mart and SDA Agreement 2002 32 Cranberries and SDA Agreement 2002 32 Crisp's Corner Store & Newsagency and SDA Agreement 2002 32 Essentials Supermarket of South Perth and SDA Agreement 2002 32 Foodland Amelia Heights and SDA Agreement 2002 32 Foodland Bayswater (Beechboro Road) and SDA Agreement 2002 32 Foodland Bayswater (Whatley Crescent) and SDA Agreement 2002 32 Foodland Bindoon and SDA Agreement 2002 32 Foodland Boddington and SDA Agreement 2002 32 Foodland Dowerin and SDA Agreement 2002 32 Foodland Lesmurdie and SDA Agreement 2002 32 Foodland Manning and SDA Agreement 2002 32 Foodland Merredin and SDA Agreement 2002 32 Foodland Mukinbudin and SDA Agreement 2002 32 Foodland Ravensthorp and SDA Agreement 2002 32 Foodland Tarcoola and SDA Agreement 2002 32 Foodland Toodyay and SDA Agreement 2002 32 Foodland Wagin and SDA Agreement 2002 32 Foodys Express and SDA Agreement 2002 32 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 673 Title of Industrial Agreements—continued Clause No. Fresh Food Corner Supermarket and SDA Agreement 2002 32 Glen Forrest Supermarket and SDA Agreement 2002 32 Hall's Creek Caravan Park and SDA Agreement 2002 32 Hannan's Foodmart and SDA Agreement 2002 32 John's Food and Liquor Store and SDA Agreement 2002 32 Kam Food & News Centre and SDA Agreement 2002 32 Kendenup Stores and SDA Agreement 2002 32 Kimberley Super Value and SDA Agreement 2002 32 Kirkwood Food Store & Delicatessen and SDA Agreement 2002 32 K-Mart Western Australia Distribution Centres Enterprise Agreement No. AG 16 of 1995 40 K-Mart Western Australia Distribution Centres Enterprise Agreement No. AG 100 of 1996 40 Laverton Stores and SDA Agreement 2002 32 Leighton Contractors Maintenance Personnel Agreement 2000, No AG 116 of 2000 Schedule 1, Cl 6 Leighton Contractors Mining and Processing Personnel Enterprise Agreement 1997 Schedule 1, Cl 9 Lionel St Markets and SDA Agreement 2002 32 Little Bucks Supermarket and SDA Agreement 2002 32 Mariella's Continental Deli and SDA Agreement 2002 32 McDonald Wholesalers and SDA Agreement 2002 32 Midland Junction Fresh Markets and SDA Agreement 2002 32 MJ and VD Quinlan and SDA Agreement 2002 32 Muir's Fresh Food Supermarkets and SDA Agreement 2002 32 Murdoch Drive Continental Super Deli and SDA Agreement 2002 32 Noakes Store Denmark and SDA Agreement 2002 32 P.R. & B.M. Harrington and SDA Agreement 2002 32 Pemberton General Store and SDA Agreement 2002 32 Perenjori Supermarket and SDA Agreement 2002 32 Pioneer Store and SDA Agreement 2002 32 Port Hedland Truck Stop and SDA Agreement 2002 32 R & E General and SDA Agreement 2002 32 Retail Food Establishments Employees Agreement 1992 34 Retail Food Services Employees' Agreement 1991 39 River Rooster Broome Agreement No. AG 271 of 1996 34 River Rooster Bunbury Agreement No. AG 264 of 1996 34 River Rooster Busselton/Dunsborough Agreement No. AG 285 of 1996 34 River Rooster Carnarvon Agreement No. AG 270 of 1996 34 River Rooster Merriwa Agreement No. AG 268 of 1996 34 River Rooster Narrogin Agreement No. AG 265 of 1996 34 South Metropolitan Youth Link (Inc.) Agreement 1997 20 South Perth Food Mart and SDA Agreement 2002 32 Supa Valu Capel and SDA Agreement 2002 32 Supa Valu Dongara and SDA Agreement 2002 32 674 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. Title of Industrial Agreements—continued Clause No. Supa Valu Hamilton Hill and SDA Agreement 2002 32 Supa Valu High Wycombe and SDA Agreement 2002 32 Supa Valu Huntingdale and SDA Agreement 2002 32 Supa Valu Innaloo and SDA Agreement 2002 32 Supa Valu Kelmscott and SDA Agreement 2002 32 Supa Valu Ocean Reef and SDA Agreement 2002 32 Supa Valu Stirling and SDA Agreement 2002 32 Supa Valu Willeton and SDA Agreement 2002 32 Three Springs General Store and SDA Agreement 2002 32 Top Valu Supermarket and SDA Agreement 2002 32 Trade Winds Supermarket and SDA Agreement 2002 32 Wundowie One Stop and SDA Agreement 2002 32 Wyndham Supermarket and SDA Agreement 2002 32 York Mini Mart and SDA Agreement 2002 32 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 675 SCHEDULE B Subject to the provisions of this clause, in addition to the rates prescribed in the wages clause of this award, an employee shall be paid the following weekly allowances when employed in the towns prescribed hereunder. Provided that where the wages are prescribed as fortnightly rates of pay, these allowances shall be shown as fortnightly allowances. TOWN PER WEEK Agnew $20.60 Argyle $54.90 Balladonia $21.10 Barrow Island $35.70 Boulder $8.70 Broome $33.10 Bullfinch $9.70 Carnarvon $17.00 Cockatoo Island $36.30 Coolgardie $8.70 Cue $21.10 Dampier $28.80 Denham $17.00 Derby $34.40 Esperance $6.00 Eucla $23.10 Exmouth $30.10 Fitzroy Crossing $41.70 Goldsworthy $17.80 Halls Creek $48.10 Kalbarri $7.30 Kalgoorlie $8.70 Kambalda $8.70 Karratha $34.50 Koolan Island $36.30 Koolyanobbing $9.70 Kununurra $54.90 Laverton $21.00 Learmonth $30.10 Leinster $20.60 Leonora $21.00 Madura $22.10 Marble Bar $53.10 Meekatharra $18.20 Mount Magnet $22.80 Mundrabilla $22.60 Newman $19.80 Norseman $18.10 Nullagine $53.00 Onslow $35.70 Pannawonica $26.80 Paraburdoo $26.70 Port Hedland $28.60 Ravensthorpe $10.90 676 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. TOWN PER WEEK Roebourne $39.70 Sandstone $20.60 Shark Bay $17.00 Shay Gap $17.80 Southern Cross $9.70 Telfer $48.90 Teutonic Bore $20.60 Tom Price $26.70 Whim Creek $34.20 Wickham $33.00 Wiluna $20.80 Wittenoom $46.90 Wyndham $51.50 (2) Except as provided in subclause (3) of this clause, an employee who has: (a) a dependent shall be paid double the allowance prescribed in subclause (1) of this clause; (b) a partial dependent shall be paid the allowance prescribed in subclause (1) of this clause plus the difference between that rate and the amount such partial dependent is receiving by way of a district or location allowance. (3) Where an employee: (a) is provided with board and lodging by his/her employer, free of charge; or (b) is provided with an allowance in lieu of board and lodging by virtue of the award or an order or agreement made pursuant to the Act; such employee shall be paid 662/3 per cent of the allowances prescribed in subclause (1) of this clause. The provisions of paragraph (b) of this subclause shall have effect on and from the 24th day of July, 1990. (4) Subject to subclause (2) of this clause, junior employees, casual employees, part time employees, apprentices receiving less than adult rate and employees employed for less than a full week shall receive that proportion of the location allowance as equates with the proportion that their wage for ordinary hours that week is to the adult rate for the work performed. (5) Where an employee is on annual leave or receives payment in lieu of annual leave he/she shall be paid for the period of such leave the location allowance to which he/she would ordinarily be entitled. (6) Where an employee is on long service leave or other approved leave with pay (other than annual leave) he/she shall only be paid location allowance for the period of such leave he/she remains in the location in which he/she is employed. 94 W.A.I.G. WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 677 (7) For the purposes of this clause: (a) “Dependant” shall mean - (i) a spouse or defacto partner; or (ii) a child where there is no spouse or defacto partner; who does not receive a location allowance or who, if in receipt of a salary or wage package, receives no consideration for which the location allowance is payable pursuant to the provisions of this clause. (b) “Partial Dependant” shall mean a “dependent” as prescribed in paragraph (a) of this subclause who receives a location allowance which is less than the location allowance prescribed in subclause (1) of this clause or who, if in receipt of a salary or wage package, receives less than a full consideration for which the location allowance is payable pursuant to the provisions of this clause. (8) Where an employee is employed in a town or location not specified in this clause the allowance payable for the purpose of subclause (1) of this clause shall be such amount as may be agreed between Australian Mines and Metals Association, the Chamber of Commerce and Industry of Western Australia and the Trades and Labor Council of Western Australia or, failing such agreement, as may be determined by the Commission. (9) Subject to the making of a General Order pursuant to s.50 of the Act, that part of each location allowance representing prices shall be varied from the beginning of the first pay period commencing on or after the 1st day in July of each year in accordance with the annual percentage change in the Consumer Price Index (excluding housing), for Perth measured to the end of the immediately preceding March quarter, the calculation to be taken to the nearest ten cents. 678 WESTERN AUSTRALIAN INDUSTRIAL GAZETTE 94 W.A.I.G. FULL BENCH—Appeals against decision of Commission— 2014 WAIRC 00408 APPEAL AGAINST A DECISION OF THE COMMISSION IN MATTER NO. B 162 OF 2012 GIVEN ON 20 MAY 2013 WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION FULL BENCH