Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

Minimum Wage Fixing Convention, 1970 (No. 131) - Australia (Ratification: 1973)

The Committee takes due note of the Government’s detailed report and attached documentation concerning the Commonwealth and State legislation giving effect to the provisions of the Convention.

Article 1, paragraph 1, of the Convention. The Committee notes the powers and functions of the Australian Industrial Relations Commission (AIRC) under the Workplace Relations Act, 1996 in making wage awards for various classes of workers. According to the Government’s report, there are around 2,200 federal awards which specify minimum rates of pay for various occupations and industry sectors, while 23.2 per cent of all employees have their pay set by federal and state awards. The Committee also notes that the AIRC is required to ensure that a safety net of fair minimum wages and conditions of employment is established having regard to the needs of employees in the light of living standards generally prevailing in the country and economic factors such as the level of productivity, inflation and the desirability of attaining a high level of employment. To this end, the AIRC considers each year an application for an increase in award rates of pay, known as the Safety Net Review - Wages Case. All interested parties, including employers and employee organizations, are notified of any application before the AIRC and may make submissions to the Commission. In its most recent Safety Net Review - Wages Decision of May 2002, the AIRC increased all minimum rates of pay by A$18 per week and set the federal minimum wage at A$431.40 per week.

The Committee further notes that the Workplace Relations Act, 1996, while retaining existing arrangements for making collective (certified) agreements with unions, introduced new arrangements which allow certified agreements to be made directly with employees. Moreover, a new system of individual agreements called Australian Workplace Agreements (AWAs) has been introduced to allow for greater flexibility at workplaces. These agreements can be negotiated collectively but must be signed individually and have to be approved by the Employment Advocate. Both certified agreements and AWAs cannot be less favourable to the employees concerned than the relevant award. According to the data furnished by the Government, in March 2002 there had been 45,000 collective agreements approved by the AIRC covering more than 8 million workers, while in July 2002 there had been 248,000 AWAs filed and approved by the Employment Advocate and the AIRC involving more than 4,300 employers. The Committee notes that, by comparison with statistical figures communicated by the Government in its 1997 report, there seems to be a significant drop in the coverage of employees by federal and state wage awards (23.2 per cent in May 2000 as contrasted to 80 per cent in August 1996) and also a considerable increase in the number of certified collective agreements and individual agreements (45,000 collective agreements and 248,000 AWAs in 2002 as compared to 14,000 collective agreements and 1,280 AWAs in 1997). The Committee invites the Government to comment on this inverse trend and explain what it may practically signify in terms of workers’ minimum wage protection.

Article 1, paragraph 2. The Committee notes the information supplied by the Government of New South Wales concerning the Clothing Outwork Strategy, launched in 2001, to improve the working conditions of home-based clothing outworkers. It requests the Government to keep it informed of any further developments and results achieved in this regard.

In addition, the Committee notes the indication of the Government of Queensland that by virtue of a recent amendment of the Industrial Relations Act, 1999, the Queensland Industrial Relations Commission (QIRC) is required to make a general ruling on a Queensland minimum wage at least once a year so that all employees including those whose employment is not covered by an award or other form of agreement (presently estimated to represent 17 per cent of all employees) have access to a minimum wage. While noting that to date the QIRC has not handed down such general ruling, the Committee requests the Government to keep it informed of any progress made in this respect.

Moreover, the Committee notes the information provided by the Government of Victoria relating to the Industrial Relations Task Force set up in 2000 and the various legislative initiatives undertaken in response to the Task Force report and recommendations. The Committee requests the Government to continue providing detailed information on all those measures, whether planned or implemented, aiming at extending minimum wage coverage to award-free areas of employment.

Article 2, paragraph 1. The Committee notes that existing Commonwealth and State legislation allows for lower minimum wage rates to apply in the case of junior employees. It also notes that, under section 509 of the Workplace Relations Act, 1996, the Australian Industrial Relations Commission may grant exemptions from the minimum rates of pay normally applicable to persons who, because of their age, infirmity or slowness, are unable to obtain work at the relevant minimum rates. In this connection, the Committee wishes to refer to paragraph 176 of its General Survey of 1992 on minimum wages in which it concluded that the reasons that prompted the adoption of lower minimum wage rates for groups of workers on account of their age and disabilities should be regularly re-examined in the light of the principle of equal remuneration for work of equal value and also that remuneration levels should be determined on the basis of objective factors such as the quantity and quality of work performed. The Committee would therefore appreciate receiving additional information on this point, including for instance any recent studies and surveys addressing these issues and examining the advisability of pursuing a policy of minimum wage differentials on account of workers’ characteristics such as age or reduced ability to work arising from a handicap.

Article 5 and Part V of the report form. The Committee notes the increased monetary fines prescribed under the Workplace Relations Act, 1996 for award breaches. It also notes the statistics provided by the Governments of Queensland and Western Australia regarding the number of wage complaints investigated and the amount of unpaid wages recovered in the period 2000-01 and 2001-02 respectively. The Committee requests the Government to continue supplying up-to-date information on the practical application of the Convention at both the federal and state levels, including (i) the evolution of minimum rates of pay, (ii) the available data on the number and different categories of low paid workers not yet covered by minimum wage provisions, and (iii) the results of inspections carried out (e.g. the number of violations observed, the penalties imposed, etc.).