State Wage Case 2024 (No 2) [2024] NSWIRComm 6

State Wage Case 2024 (No 2) [2024] NSWIRComm 6

Both the quantum and timing of the Fair Work Commission's Annual Wage Review 2023-24 are provisions the Commission must consider adopting under s 50. There are no longer any statutory or policy reasons, such as the former 'wages cap' or '12-month rule', to delay adoption of the national increase. Proceeding with increases from 1 July 2024 is necessary to prevent further decline in the real value of award wages, to prevent certain award classifications from falling below the National Minimum Wage, and to fulfil the Commission’s statutory mandate to set fair and reasonable conditions. No countervailing evidence for delay or for pro-rata adjustment was provided.

Parties
Secretary: Industrial Relations Secretary (Secretary); LGNSW: Local Government and Shires Association of New South Wales; Unions NSW: Unions NSW on behalf of affiliated unions (Health Services Union NSW, New South Wales Nurses and Midwives' Association, Electrical Trades Union of Australia, New South Wales Branch, Media Entertainment and Arts Alliance New South Wales)
Jurisdiction
Australia
Judgment Date
09 October 2024
Procedural Posture
Award Variation / State Wage Case / Principal Judgment – Final Disposition at First Instance
Outcome
Application for award variation (wage increase) allowed as sought by Unions NSW in relation to Category 1; consent orders in Categories 2 and 3.
Legal Topics
Award Variation, State Wage Case, Minimum Wage, Adoption of National Decision, Timing of Wage Increases
Employment Law Industrial Law Award Variation State Wage Case Minimum Wage Adoption of National Decision Timing of Wage Increases

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Parties

Industrial Relations Secretary (Secretary)

Secretary

Local Government and Shires Association of New South Wales

LGNSW

Unions NSW on behalf of affiliated unions (Health Services Union NSW, New South Wales Nurses and Midwives' Association, Electrical Trades Union of Australia, New South Wales Branch, Media Entertainment and Arts Alliance New South Wales)

Unions NSW

Procedural Posture

Award Variation / State Wage Case / Principal Judgment – Final Disposition at First Instance

Legal Issues

  1. 1 Whether to adopt the National Minimum Wage increase and operative date for state awards under the Industrial Relations Act 1996 (NSW)
  2. 2 Whether the timing of the increase (1 July 2024) forms part of the ‘provisions’ of the National decision to be adopted under s 50
  3. 3 Whether there is any statutory, practical, or policy basis for not implementing increases from 1 July 2024 for Category 1 awards

Ratio Decidendi

Both the quantum and timing of the Fair Work Commission's Annual Wage Review 2023-24 are provisions the Commission must consider adopting under s 50. There are no longer any statutory or policy reasons, such as the former 'wages cap' or '12-month rule', to delay adoption of the national increase. Proceeding with increases from 1 July 2024 is necessary to prevent further decline in the real value of award wages, to prevent certain award classifications from falling below the National Minimum Wage, and to fulfil the Commission’s statutory mandate to set fair and reasonable conditions. No countervailing evidence for delay or for pro-rata adjustment was provided.

Court Disposition

Application for award variation (wage increase) allowed as sought by Unions NSW in relation to Category 1; consent orders in Categories 2 and 3.

Orders

  • The Commission adopts the Annual Wage Review 2023-24 decision as a National decision for Category 1, Category 2, and Category 3 awards.
  • Rates of pay and pay-related allowances in Category 1 awards increased by 3.75%, operative from first full pay period on or after 1 July 2024, with offsetting provisions.