C2001/107, Transcript of Proceedings [2001] AIRCTrans 1040 (31 May 2001)

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TRANSCRIPT OF PROCEEDINGS


O/N 7334
A 15.5.01

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

VICE PRESIDENT McINTYRE
SENIOR DEPUTY PRESIDENT WATSON
COMMISSIONER GAY

C Nos 2001/107, 298, 419, 1234,
1235, 1304, 1589 and 1590

AUSTRALIAN PUBLIC SERVICE AWARD
1998

Application by the Community and Public Sector
Union to vary the above award re supported
wage system

RETAIL AND WHOLESALE INDUSTRY,
SHOP EMPLOYEES, AUSTRALIAN CAPITAL
TERRITORY, AWARD 2000

Application by the Shop Distributive and Allied
Employees Association to vary the above award re
supported wage system clause

SADDLERY, LEATHER, CANVAS AND PLASTIC
MATERIAL WORKERS AWARD 2000

Application by the Australian Liquor, Hospitality
and Miscellaneous Workers Union to vary the above
award re variation to salaries for employees with
disabilities

TIMBER AND ALLIED INDUSTRIES AWARD 1999

Application by the Construction, Forestry, Mining and
Energy Union, Construction and General Division, South
Australian Divisional Branch to vary the above award re
supported wage system for employees with disabilities

TIMBER INDUSTRY, CSR AND SUCCESSORS/CFMEU
WOOD PANELS AWARD 2000

Application by the Construction, Forestry, Mining and
Energy Union, Construction and General Division, South
Australian Divisional Branch to vary the above award re
supported wages system for employees with disabilities

COMMUNITY AND AGED CARE SERVICES (ACT)
AWARD 1995

Application by the Australian Liquor, Hospitality and
Miscellaneous Workers Union to vary the above award re
increasing the minimum amount payable under the
Supported wage system for employees with disabilities
clause

BRISBANE CITY COUNCIL SALARIED STAFF
AWARD 1992

Application by the Australian Municipal, Administrative,
Clerical and Services Union to vary the above award re
the supported wage clause

GENERAL CLERKS (NORTHERN TERRITORY) CONSOLIDATED
AWARD 2000

Application by the Australian Municipal, Administrative,
Clerical and Services Union to vary the above award re
the supported wage system clause

MELBOURNE

10.03 AM, FRIDAY, 11 MAY 2001

PN1

MS M. GAYNOR: I seek leave to appear for the union applicants in the case, the ASU, CFMEU, CPSU, LHMU and SDAEA. I seek leave to intervene on behalf of the ACTU.

PN2

MR R. HAMILTON: I appear on behalf of the Victorian Employers Chamber of Commerce and Industry, with MR P. RYAN on behalf of the Victorian Association of Forest Industries and the Timber Trades Industrial Association, and with MR M. WELDON on behalf of the Australian Retailers Association, on behalf of Business, South Australia, the Australian Business Limited, the Tasmanian Chamber of Commerce and Industry, the Australian Mines and Metals Association, the Northern Territory Chamber of Commerce and Industry and on behalf of the Australian Chamber of Commerce and Industry as an intervener.

PN3

MS J. McCARTHY: I appear on behalf of the Minister for Employment, Workplace Relations and Small Business.

PN4

VICE PRESIDENT McINTYRE: Thanks. Yes, Ms Gaynor.

PN5

MS GAYNOR: Thank you, your Honour. Your Honours and Commissioner, can I indicate that the applications and notice of today's hearing have been served or served in accordance with substituted service granted by the Commission in all these matters. The applications before the Commission seek to increase the minimum payment under the supported wage system clause in these awards which constitute the awards or successors to the awards used in the 1994 test case.

PN6

Your Honours, Commissioner, this hearing provides an opportunity to provide to the Commission information on the operation of the supported wage system. Figures researched for the Federal Department of Family and Community Services show that following the 1994 introduction of the supported wage system there were 19 supported wage system employees in '94/95, 662 new participants in '95/96 and 1040 in 1996/97. Supported wage system employees at the end of June 1999 totalled 2157, and supported wage system employees at June 2000 totalled 2340.

PN7

Your Honours, Commissioner, the minimum payment under the supported wage system has a practical application. According to departmental figures, up to June 2000, approximately 15.42 per cent of all assessed wages under the support wage system have been paid at the minimum payment. This means that for 685 workers with a disability the minimum payment has been the wage received.

PN8

Turning to the applications at hand, the minimum payment is determined having regard to the disability support pension, income-test-free area of earnings, which currently stands at $106 per fortnight, equivalent to the $53 per week claimed in the applications. I can table the relevant Centrelink guide to the Commonwealth Government payments which confirms this figure. The figure that confirms the $53 figure that is claimed in these applications is on the second page. The top left-hand corner charts the income test for pensions and the relevant benchmark is the single. For a full pension a pensioner can earn up to $106 per week.

PN9

Given that the supported wage system was negotiated on a tripartite basis, the ACTU wrote to the ACCI and the Department of Family and Community Services to advise our intention to seek to up-date the minimum payment in federal awards consistent with the disability support pension income test fee earnings figure. The Department has written to the ACTU to indicate its support, and we understand the ACCI has no objection to the grant of the applications.

PN10

In its letter to the ACTU the Department of Family and Community Services notes that the minimum payment has not been adjusted in the test case awards since 1997 and suggests that the parties consider an annual review. The ACTU agrees, and will undertake such a review in future, with the intention of making applications to vary the minimum payment on an annual basis.

PN11

Your Honours, Commissioner, this hearing also provides an opportunity to raise with the Commission the issue of the consistency of the rate of minimum payment under the supported wage system across awards of the Commission. The supported wage system clause appears in many of the Commission's awards. A recent review of those awards undertaken for the Department of Family and Community Services reveal that the minimum payment in some awards remains as originally determined at $45 per week.

PN12

Some awards reflect the increase to $50 per week, and in other awards ACTU affiliates have sought to adjust the minimum payment; at the same time they have sought adjustment for safety net reviews, and consequently the minimum payment is ahead of $50. In the past, for our part, we have requested that our affiliates up-date the payment to the rate determined for the test case awards, but as the review of awards revealed, this has not resulted in operation of a consistent rate across all federal awards. We are not confident that we could achieve a better outcome on this occasion.

PN13

Rather than concede the inevitability of awards not being adjusted, the ACTU is considering proposing to the Commission and all parties to the supported wage system a change to a National Training Wage Award approach. The Commission will be aware that rates for most traineeships under a contract of training are to be found under one award of the Commission, the National Training Wage Award. This one award approach facilitates efficient variation and consistent application of rates for trainees when rates are adjusted in accordance with the safety net reviews of the Commission.

PN14

In order to bring the same benefit to the supported wage system, the ACTU has decided to propose to the July meeting of the ACTU executive that unions agree to seek the establishment by the Commission of one federal award for the supported wage system. This of course would necessitate variation of awards to delete the supported wage system model clause, where existing, and to insert a relationship clause similar to the clause which appears in federal awards picking up the provisions of the National Training Wage Award.

PN15

In this way further variation of the supported wage system minimum payment would have consistent application in the federal area and under awards containing the relationship clause. Consistent with the tripartite nature of the supported wage system, we have raised this proposal with ACCI, and Mr Hamilton has indicated that they would take it under consideration. We have also this week written to the Department of Family and Community Services.

PN16

Your Honours, Commissioner, in advance of this move we seek the grant of the increase in the minimum payment to $53 in those awards currently before the Commission, and we seek a date of effect of today. If the Commission pleases.

PN17

VICE PRESIDENT McINTYRE: Thanks, Ms Gaynor. Mr Hamilton.

PN18

MR HAMILTON: Thank you, your Honour. If the Commission pleases, as the ACTU has indicated, we have no objection to grant these applications. The supported wage system and the income-test-free threshold level in the supported wage system was the basis originally of the minimum payment, and we have not opposed adjustment of the minimum payment to reflect the changes in that income test threshold in the past.

PN19

It is not necessarily an invariable rule. There may come a time when changes are made to the income-test-free threshold which necessitate a different approach by us, but at this stage on a case-by-case basis we certainly don't have any objections to the application being granted. On the wider issue of one award, we have briefly consulted with our membership on this issue and our membership has identified no problems to date with that sort of approach.

PN20

We are therefore happy at this stage to give in principle endorsement to that suggestion, and to enter into discussions with the ACTU about it. Obviously if problems are identified with the over-all approach, we will need to deal with those problems, but at this stage we do give in principle endorsement. That endorsement is, of course, given on the basis that there is no implications for the issue of award structures generally.

PN21

Consistency in the award system doesn't necessarily mean uniformity in many other aspects of award provisions, and it is important for our part that we make that point and that it be understood as part of our position in relation to this issue. If the Commission pleases, those are our submissions.

PN22

VICE PRESIDENT McINTYRE: Thanks, Mr Hamilton. Ms McCarthy.

PN23

MS McCARTHY: Thank you, your Honour. I am appearing in relation to only those matters regarding the Australian Public Service Award. As a respondent to the APS Award, the Minister does not object to the application. It is the Minister's understanding that, in negotiating the supported wage system, the level of minimum payment was aligned to the income-free threshold of the disability support pension. That figure is now $106 per fortnight, and as you are aware the minimum payment arises in two areas of the model clause, under the supported wage rates and also under the trial period. Therefore it is appropriate to increase the current allowance to $53 in both circumstances.

PN24

In relation to the APS Award, the Minister recognises that it is important that minimum payments under the supported wage system be adjusted regularly to ensure their continuing viability, and we would be willing to discuss further a method of consistently adjusting the minimum rates. If the Commission pleases.

PN25

VICE PRESIDENT McINTYRE: Thanks, Ms McCarthy. Ms Gaynor, do you wish to say anything in reply?

PN26

MS GAYNOR: No, thank you, your Honour.

PN27

VICE PRESIDENT McINTYRE: Thank you all for those submissions. It is our decision to vary the awards before us so that the supported wage is shown in them as $53 per week. The variations will be operative from the beginning of the first pay period commencing on or after today. We will publish reasons for our decision. We have noted with interest that there may be some further developments in this area, and if any application is filed it will, of course, be dealt with as soon as possible. Thank you.

ADJOURNED INDEFINITELY [10.16am]