The Expert Panel considers the modern awards objective, and the economic and labour market considerations including statistical data such as economic growth, productivity, business competitiveness and viability, and unemployment. External parties are also invited to lodge submissions for the Expert Panel to consider when making their final decision. In a typical year, when the final decision is handed down, any increases take effect in the first full pay period on or after 1 July. However, due to COVID-19, this year may be different. Furthermore, although the decision will be effective from the first full pay period on or after 1 July 2020, as per the Commission’s naming convention, it is known as the Annual Wage Review 2019–2020 (“Wage Review 2019-2020”).

Annual Wage Review 2019–2020: The effect of COVID-19

On 23 March 2020 and 6 April 2020, the Commission extended the timetable for receiving submissions from interested parties regarding the wage increase in 2020. This was in order to better consider the consequences of the COVID-19 pandemic and to allow the Commission to take into account the Australian Bureau of Statistics’ (ABS) National Accounts for the March Quarter 2020 which will be released on 3 June 2020.

In its commentary, the Commission highlighted the requirement under the FW Act to conduct a wage review each year. This means “30 June 2020 provides the outer limit for the completion” of the Wage Review 2019-2020.

A discussion paper published by the Commission on 13 May 2020, has confirmed the Commission does have the power to delay the commencement date of any wage increase.

Australian Government Submission

On 3 April 2020, the Australian Government filed a submission to the Commission urging a “cautious approach” to be taken. The state of the economy was also explored throughout the submission which highlighted a reduction in the demand for goods and services in the tourism, hospitality and retail sectors as well as the anticipated impacts and challenges of “scaling up” preventative health measures and subsequent economic effects. At the core of the submission was the importance of keeping Australians in jobs and maintaining “the viability of the businesses, particularly small businesses, that provide those jobs”.

Position of the Australian Council of Trade Unions

The Australian Council of Trade Unions (“ACTU”) is urging the Expert Panel to deliver a four percent increase resulting in a new national minimum wage of $770.43 per week or $20.27 per hour. The ACTU submitted the COVID-19 pandemic is not a reason to delay an increase to minimum wages in Australia and that a wage increase would be consistent with the “government model of offering stimulus tranches”. Likewise, the ACTU highlighted economic growth in the Australian economy to December 2019 and in turn a “record low” growth in wages.

Position of the Australian Chamber of Commerce and Industry and other employer groups

In light of the continued impact of the pandemic, employer groups, including the Australian Chamber of Commerce and Industry (“ACCI”), are lobbying the Commission for:

• A zero percent wage increase due to the highly unprecedented effects of COVID-19 on business;
• Utilisation of the FW Act’s ‘exceptional circumstances’ clause to delay the operative date for any increase until 15 July 2020 (i.e. delaying the usual date by two weeks);
• Staggering or excluding any announced percentage wage increase for certain employers and employees.

The Victorian Chamber will continue to engage with ACCI, and will review and monitor changes as they are made.

To receive modern award specific updates, Victorian Chamber members are urged to utilise our award subscription service. By doing so you will be notified of draft and finalised wage information when it is available following a decision by the Commission. To access the award subscription page you are required to log in to your Victorian Chamber account. If this is your first visit to our website you will be required to select ‘request a new password’ (via the login tab located in the top right hand corner of the home page) and follow the prompts. If you are unsure of the award applying to your business, please contact the Workplace Relations Advice Line on 8662 5222.