NatRoad is receiving a number of calls from members about whether there will be minimum wage and Award increases from 1 July 2020. The COVID-19 pandemic has delayed the process of setting wages for the next financial year.
Each year, the Fair Work Commission (FWC) reviews the minimum wage and modern award rates for each classification in all 122 modern awards including the two main transport awards. Wage increases decided by the FWC usually take effect on 1 July. This year is different and there may or may not be a wage increase from 1 July 2020 for minimum wage and award reliant employees. At present, the FWC is considering submissions made to it on 10 June 2020 and we are awaiting notification as to when the Commission will be handing down its decision.
NatRoad is of the view that no increase should occur as has been argued in the Fair Work Commission by a number of employer bodies. But that outcome cannot be guaranteed. The ACTU has called for a 4% increase in minimum and award wages, partly, it says, as a means to stimulate the economy. One scenario is that any increase ordered by the Commission could be made in two bites, for example from 1 December 2020 and then at a point in 2021.
We expect a decision within the next fortnight and we will alert all members once we know the outcome.