Re Crown Employees Wages Staff (Rates of Pay) Award 2011 & Ors (No 3) [2013] NSWIRComm 109

Re Crown Employees Wages Staff (Rates of Pay) Award 2011 & Ors (No 3) [2013] NSWIRComm 109

On its proper construction, s 146C of the Industrial Relations Act 1996 and the Regulation require the Commission to give effect to the policy that public sector wage increases not exceed 2.5% per annum, but do not guarantee that increases of 2.5% must be awarded each year. The Commission retains a constrained discretion to award less than 2.5% when warranted on public interest grounds, such as significant economic or fiscal harm. In this case, no sufficient evidence was shown that an increase over 2.27% to 2.5% would cause real harm to the state's economy or public finances; thus, the awards should be varied to provide a 2.5% increase from 1 July 2013.

Parties
Party: Australian Manufacturing Workers' Union; Party: Australian Salaried Medical Officers' Federation (New South Wales); Party: Australian Workers Union NSW Branch; Party: Construction, Forestry, Mining and Energy Union (New South Wales Branch); Party: Electrical Trades Union, NSW Branch; Party: Fire Brigade Employees Union; Party: Health Services Union NSW; Party: Landcom; Party: NSW Ministry of Health; Party: NSW Nurses and Midwives Association; Party: NSW Teachers Federation; Party: Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales; Party: Secretary of the Treasury; Party: The Association of Professional Engineers, Scientists and Managers, Australia (NSW Branch); Party: Transport Workers' Union of New South Wales; Party: Unions NSW; Party: United Services Union; Party: United Voice; Party: Roads and Maritime Services
Jurisdiction
Australia
Judgment Date
17 December 2013
Procedural Posture
Award Variation Applications—industrial Arbitration / Final Judgment Deciding Wage Increase for 12 Months From 1 July 2013
Outcome
Awards varied to provide a 2.5% increase in wages and relevant allowances from 1 July 2013. No finding for lower increase justified.
Legal Topics
Public Sector Wage Setting, Statutory Construction—industrial Relations Act 1996 (nsw), S 146 C, Industrial Awards—variation of Wages, Government Wage Policy, Role of Economic and Fiscal Considerations in Industrial Arbitration
Industrial Law Employment Law Statutory Interpretation Public Sector Wage Setting Statutory Construction—industrial Relations Act 1996 (nsw), S 146 C Industrial Awards—variation of Wages Government Wage Policy Role of Economic and Fiscal Considerations in Industrial Arbitration

Case Brief

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Parties

Australian Manufacturing Workers' Union

Party

Australian Salaried Medical Officers' Federation (New South Wales)

Party

Australian Workers Union NSW Branch

Party

Construction, Forestry, Mining and Energy Union (New South Wales Branch)

Party

Electrical Trades Union, NSW Branch

Party

Fire Brigade Employees Union

Party

Health Services Union NSW

Party

Landcom

Party

NSW Ministry of Health

Party

NSW Nurses and Midwives Association

Party

NSW Teachers Federation

Party

Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales

Party

Secretary of the Treasury

Party

The Association of Professional Engineers, Scientists and Managers, Australia (NSW Branch)

Party

Transport Workers' Union of New South Wales

Party

Unions NSW

Party

United Services Union

Party

United Voice

Party

Roads and Maritime Services

Party

Procedural Posture

Award Variation Applications—industrial Arbitration / Final Judgment Deciding Wage Increase for 12 Months From 1 July 2013

Legal Issues

  1. 1 Whether the Industrial Relations Commission could award increases of less than 2.5% per annum in public sector wages on economic or fiscal grounds in light of s 146C and the Regulation under the Industrial Relations Act 1996
  2. 2 Whether economic and fiscal considerations justified limiting wage increases to 2.27%
  3. 3 Whether s 146C and the Regulation displaced or qualified the Commission's public interest role under ss 10, 17(3)(d), and 146

Ratio Decidendi

On its proper construction, s 146C of the Industrial Relations Act 1996 and the Regulation require the Commission to give effect to the policy that public sector wage increases not exceed 2.5% per annum, but do not guarantee that increases of 2.5% must be awarded each year. The Commission retains a constrained discretion to award less than 2.5% when warranted on public interest grounds, such as significant economic or fiscal harm. In this case, no sufficient evidence was shown that an increase over 2.27% to 2.5% would cause real harm to the state's economy or public finances; thus, the awards should be varied to provide a 2.5% increase from 1 July 2013.

Court Disposition

Awards varied to provide a 2.5% increase in wages and relevant allowances from 1 July 2013. No finding for lower increase justified.

Orders

  • The awards that are the subject of these proceedings are to be varied to provide for an increase in wages and relevant allowances by 2.5 per cent from the beginning of the first pay period to commence on or after 1 July 2013.