The Fair Work Commission has awarded an annual wage increase of 1.75 percent to be phased in over three separate operative dates based on award groups.
The Fair Work Commission awarded a 1.75 percent increase to all minimum award rates of pay based on a 38-hour week. Taking into account current economic circumstances, the Annual Wage Bench departed from its normal approach of awarding a minimum wage increase across all awards effective from a common operative date of 1 July 2020.
In this decision, the Annual Wage Bench split the increase across three award groupings to become operative on three separate dates. For the automotive industry the relevant operative dates of the increase are:
• Clerks - Private Sector Award 2020
The minimum award wage increase applies from the first full pay period commencing on or after 1 November 2020.
• Manufacturing and Associated Industries and Occupations Award 2020
The minimum award wage increase applies from the first full pay period commencing on or after 1 November 2020. This award only applies to businesses that prior to 29 May 2020 were covered in Section 2 of the Vehicle Manufacturing, Repair, Services and Retail Award 2010.
• Vehicle Repair, Services and Retail Award 2020
The minimum award wage increase applies from the first full pay period commencing on or after 1 February 2021.
The Federal Minimum Wage will increase as set out below:
Current Federal Minimum Wage
New Federal Minimum Wage
All other minimum award rates of pay will also increase by 1.75 percent per week from the above dates.
As the wage increase will apply to minimum award rates of pay only, the minimum wage increases will be fully absorbed into any existing over-award rates of pay. Proportionate increases will flow on to junior employees and employees to whom training arrangements apply (apprentices and trainees), employees with a disability and casual employees.
VACC will update the Wage Guides for Clerical employees for Victoria and Tasmania and they will be emailed to members by 19 October 2020, as well as revised minimum award rates of pay for businesses covered by the Manufacturing and Associated Industries and Occupations Award 2020.
Article to be featured in VACC Update July 2020.