2003 WAIRC 08452
100317126
WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

PARTIES ON THE COMMISSION'S OWN MOTION

TRADES AND LABOR COUNCIL OF WESTERN AUSTRALIA, CHAMBER OF COMMERCE & INDUSTRY OF WESTERN AUSTRALIA INC., AUSTRALIAN MINES & METALS ASSOCIATION INC. AND THE MINISTER FOR CONSUMER AND EMPLOYMENT PROTECTION

CORAM COMMISSION IN COURT SESSION
CHIEF COMMISSIONER W S COLEMAN
SENIOR COMMISSIONER A R BEECH
COMMISSIONER J F GREGOR

DATE THURSDAY, 5 JUNE 2003
FILE NO APPLICATION 569 OF 2003
CITATION NO. 2003 WAIRC 08452

Result State Wage Case Increase – Principles, Safety Net Adjustment and Minimum Adult Award Wage
Representation
RESPONDENTS MS S MAYMAN AND WITH HER MS C OZICH ON BEHALF OF THE TRADES AND LABOR COUNCIL OF WESTERN AUSTRALIA
MR P WILDING AND WITH HIM MR J RIDLEY AND MS W HADINGHAM ON BEHALF OF THE MINISTER FOR CONSUMER AND EMPLOYMENT PROTECTION
Mr A Caccamo and then Mr T Adams on behalf of the Australian Mines and Metals Association Inc.
Mr G Bull and with him Ms N Cusworth on behalf of the Chamber of Commerce and Industry of Western Australia Inc.
MR D CROWE ON BEHALF OF THE AUSTRALIAN HOTELS ASSOCIATION WA BRANCH


General Order

THE COMMISSION, constituted for the purpose of section 51 of the Industrial Relations Act, 1979 (“the Act”) having heard from Ms S Mayman and Ms C Ozich on behalf of the Trades and Labor Council of WA, Mr A Caccamo and then Mr T Adams on behalf of the Australian Mines and Metals Association, Mr G Bull and Ms N Cusworth on behalf of the Chamber of Commerce and Industry of Western Australia, Mr P Wilding and Ms W Hadingham on behalf of the Minister for Consumer and Employment Protection and Mr D Crowe on behalf of the Australian Hotels Association WA Branch, having concluded that there are no good reasons not to give effect to the National Wage Decision issued as the “Safety Net Review – Wages May 2003” [PR002003],

AND HAVING addressed matters raised in proceedings pursuant to section 35 of the Act including the following:

Ÿ clarification of amounts to be paid under the arbitrated safety net adjustments when payments are prescribed in fortnightly and annual rates of remuneration;
Ÿ with the adjustments to the minimum adult award wage, the minimum weekly wage rate to which an apprentice 21 years of age and above shall be paid;
Ÿ clarification to ensure that only clauses, schedules or appendices in awards that serve only to facilitate transitional or interim arrangements or the translation of wage rates to revised schedules and which no longer have relevance to current wage rates paid under these awards are excised from the application of the arbitrated safety net adjustment, and
Ÿ redrafting of the schedule which sets out the Statement of Principles – June 2003 to clarify the operation of those principles within the statutory framework of the Act;

NOW THEREFORE, pursuant to section 51 and the powers conferred under the Act hereby orders-

1. THAT the General Order which issued in Matter Number 797 of 2002 [(2002) 82 WAIG 1369] is cancelled with effect on and from 5 June 2003.

2. THAT the Statement of Principles under the General Order in Matter Number 797 of 2002 be replaced by the Statement of Principles – June 2003 (in the schedule attached hereto).

3. THAT rates of pay in relevant awards, as set out in the schedules published by the Commission, be increased by the arbitrated safety net adjustment of $17.00 per week in Award Rates up to and including $731.80 per week and $15.00 per week in Award Rates above $731.80 per week payable on and from 5 June 2003 AND this increase shall be subject to absorption in the same terms as previous State Wage Decisions; and

THAT any increase to wages resulting from this Order unless provided for elsewhere shall be calculated on the basis that:

(a) Where the award prescribes an adult weekly rate of pay, the weekly rate of pay is increased by the amount of $17.00 per week in Award Rates up to and including $731.80 per week and $15.00 per week in Award Rates above $731.80.
(b) Where the award prescribes an adult fortnightly rate of pay, the fortnightly rate of pay in increased by amounts of $34.00 in Award Rates up to and including $1463.60 and $30.00 in Award Rates above $1463.60.
(c) Where the award prescribes an adult annual rate of pay, the annual rate of pay is increased by the amounts of $887.00 in Award Rates up to and including $38176.00 and $782.00 in Award Rates above $38176.00.
(d) Where the award prescribes an adult hourly rate of pay, the hourly rate of pay is increased by the amount of $17.00 per week in Award Rates up to and including $731.80 per week and $15.00 per week in Award Rates above $731.80 divided by the number of ordinary hours of work prescribed by the relevant award for a full time employee. Where applicable, casual loadings are to be calculated based on the hourly rate.

Increases under the State Wage Case Principles prior to June 2003, except those resulting from enterprise agreements, are not to be used to offset the arbitrated safety net adjustments of $17.00 or $15.00 per week as the case may be.

4. (a) THAT all Awards which contain Clause 1B – Minimum Adult Award Wage shall be varied to delete the existing provision and in lieu thereof insert the following:

1B. - MINIMUM ADULT AWARD WAGE

(1) No adult employee shall be paid less than the Minimum Adult Award Wage unless otherwise provided by this clause.

(2) The Minimum Adult Award Wage for full time adult employees is $448.40 per week payable on and from 5 June 2003.

(3) The Minimum Adult Award Wage of $448.40 per week is deemed to include all arbitrated safety net adjustments from State Wage Case decisions.

(4) Unless otherwise provided in this clause adults employed as casuals, part time employees or pieceworkers or employees who are remunerated wholly on the basis of payment by result shall not be paid less than pro rata the Minimum Adult Award Wage according to the hours worked.

(5) Juniors shall be paid no less than the wage determined by applying the percentage prescribed in the junior rates provision to the Minimum Adult Award Wage of $448.40 per week.

(6) (a) The Minimum Adult Award Wage shall not apply to apprentices, employees engaged on traineeships or Jobskill placements or employed under the Commonwealth Government Supported Wage System or to other categories of employees who by prescription are paid less than the minimum award rate.

(b) Liberty to apply is reserved in relation to any special categories of employees not included here or otherwise in relation to the application of the Minimum Adult Award Wage.

(7) Subject to this clause the Minimum Adult Award Wage shall -

(a) apply to all work in ordinary hours.

(b) apply to the calculation of overtime and all other penalty rates, superannuation, payments during any period of paid leave and for all purposes of this award.

(8) Minimum Adult Award Wage

The rates of pay in this award include the minimum weekly wage for adult employees payable under the 2003 State Wage Case Decision. Any increase arising from the insertion of the minimum adult award wage will be offset against any equivalent amount in rates of pay received by employees whose wages and conditions of employment are regulated by this award which are above the wage rates prescribed in the award. Such above award payments include wages payable pursuant to enterprise agreements, consent awards or award variations to give effect to enterprise agreements and over award arrangements. Absorption which is contrary to the terms of an agreement is not required.

Increases under previous State Wage Case Principles or under the current Statement of Principles, excepting those resulting from enterprise agreements, are not to be used to offset the minimum adult award wage.

(9) Adult Apprentices
(a) Notwithstanding the provisions of this clause, an apprentice, 21 years of age or over, shall not be paid less than $406.70 per week.
(b) The rate paid in paragraph (a) above is payable on superannuation and during any period of paid leave prescribed by this Award.
(c) Where in an Award an additional rate is expressed as a percentage, fraction, multiple of the ordinary rate of pay, it shall be calculated upon the rate prescribed in this Award for the actual year of apprenticeship.
(d) Nothing in this clause shall operate to reduce the rate of pay fixed by the award for an adult apprentice in force immediately prior to 5 June 2003.


4. (b) THAT in awards set out hereunder which contain in another Clause text identical to that in Clause 1B (prior to the variation under 4(a) above) shall be varied by deleting that clause and inserting in lieu thereof in the relevant Clause the following:

1B. - MINIMUM ADULT AWARD WAGE

(1) No adult employee shall be paid less than the Minimum Adult Award Wage unless otherwise provided by this clause.

(2) The Minimum Adult Award Wage for full time adult employees is $448.40 per week payable on and from 5 June 2003.

(3) The Minimum Adult Award Wage of $448.40 per week is deemed to include all arbitrated safety net adjustments from State Wage Case decisions.

(4) Unless otherwise provided in this clause adults employed as casuals, part time employees or pieceworkers or employees who are remunerated wholly on the basis of payment by result shall not be paid less than pro rata the Minimum Adult Award Wage according to the hours worked.

(5) Juniors shall be paid no less than the wage determined by applying the percentage prescribed in the junior rates provision to the Minimum Adult Award Wage of $448.40 per week.

(6) (a) The Minimum Adult Award Wage shall not apply to apprentices, employees engaged on traineeships or Jobskill placements or employed under the Commonwealth Government Supported Wage System or to other categories of employees who by prescription are paid less than the minimum award rate.

(b) Liberty to apply is reserved in relation to any special categories of employees not included here or otherwise in relation to the application of the Minimum Adult Award Wage.

(7) Subject to this clause the Minimum Adult Award Wage shall -

(a) apply to all work in ordinary hours.

(b) apply to the calculation of overtime and all other penalty rates, superannuation, payments during any period of paid leave and for all purposes of this award.

(8) Minimum Adult Award Wage

The rates of pay in this award include the minimum weekly wage for adult employees payable under the 2003 State Wage Case Decision. Any increase arising from the insertion of the minimum adult award wage will be offset against any equivalent amount in rates of pay received by employees whose wages and conditions of employment are regulated by this award which are above the wage rates prescribed in the award. Such above award payments include wages payable pursuant to enterprise agreements, consent awards or award variations to give effect to enterprise agreements and over award arrangements. Absorption which is contrary to the terms of an agreement is not required.

Increases under previous State Wage Case Principles or under the current Statement of Principles, excepting those resulting from enterprise agreements, are not to be used to offset the minimum adult award wage.

(9) Adult Apprentices
(a) Notwithstanding the provisions of this clause, an apprentice, 21 years of age or over, shall not be paid less than $406.70 per week.
(b) The rate paid in paragraph (a) above is payable on superannuation and during any period of paid leave prescribed by this Award.
(c) Where in an Award an additional rate is expressed as a percentage, fraction, multiple of the ordinary rate of pay, it shall be calculated upon the rate prescribed in this Award for the actual year of apprenticeship.
(d) Nothing in this clause shall operate to reduce the rate of pay fixed by the award for an adult apprentice in force immediately prior to 5 June 2003.

Awards
Award No
Clause



  Egg Processing Award 1978
R42/1978
1A
  Grain Handling Salaried Officers’ Consolidated Award 1989
37/1965
1A
  Hospital Salaried Officers (Australian Red Cross Blood Service, Western Australia) Award, 1978
R 17/1974
2B
  Independent Schools Psychologists and Social Workers Award
3/1996
2
  State Research Stations, Agricultural Schools and College Workers’ Award 1971
23/1971
27
  Watchmakers’ and Jewellers Award 1970
10/1970
8A

4. (c) THAT the awards set out hereunder which prescribe a minimum weekly wage for adult employees are varied by deleting that provision and inserting the text of the Adult Minimum Award Wage at Clause 4(a) of this Order.

Awards
Award No
Clause



  Air Conditioning and Refrigeration Industry (Construction and Servicing) Award
R 10/1979
29A
  Animal Welfare Industry Award
8/1968
19A
  Asbestos Jointings Industry Award 1967
7/1967
24A
  AWU Gold (Mining and Processing) Award 1993
A 1/1992
16(5)
  B.P. Refinery (Kwinana) Construction, Mining and Energy Workers Union Award 1980 - The
A 2/1981
36
  Bag, Sack and Textile Award
3/1960
25(4)
  Bakers' (Country) Award No. 18 of 1977
R 18/1977
8(6)
  Bespoke Bootmakers' and Repairers' Award No. 4 of 1946
4/1946
8A
  Building Trades (Goldmining Industry) Award
29/1965, 32/1965, 4/1966
9A
  Building Trades Award 1968
31/1966
10A
  Burswood Island Resort Employees Award
A 23/1985,
A 25/1985
6
  Burswood Island Resort Employees Award 2002 No. A4 of 2002
A 4/2002
6
  Burswood Catering and Entertainment Pty Ltd Employees Award 2001
A 4/2001
6
  Case and Box Makers Award, 1952
48/1951
6A
  Cement Workers' Award, 1975
10/1967
11A
  Clothing Trades Award
16/1972
19
  Club Workers' Award, 1976
12/1976
21A
  Dried Vine Fruits Industry Award, 1951 - The
8/1951
22(3)
  Earth Moving and Construction Award
10/1963
27 - after Part 3
  Electrical, Engineering and Building Trades (West Australian Newspapers Limited) Award, 1988
A 17/1985
First Schedule Cl. 8
  Electronics Industry Award No. A22 of 1985
A 22/1985
Part II – Construction Work Cl 10(9) (also contains a standard ‘1B’ clause)
  Engineering and Engine Drivers' (Nickel Smelting) Award, 1973
4/1973
23
  Engineering Trades (Government) Award, 1967 Award Nos. 29, 30 and 31 of 1961 and 3 of 1962
29/1961, 30/1961, 31/1961, 3/1962
First Schedule Wages - Cl. 14
  Fire Brigade Employees (Workshops) Award 1983
A 6/1981
19(8)
  Foremen (Building Trades) Award 1991
A 5/1987
6
  Fruit Growing and Fruit Packing Industry Award - The
R 17/1979
24A
  Furniture Trades Industry Award
A 6/1984
8(6)
  Gaol Officers' Award 1998
12/1968
2B
  Gold Mining Engineering and Maintenance Award
26/1947
5(8)
  Golf Link and Bowling Green Employees' Award, 1993
16/1967
27(4)
  Government Railways Locomotive Enginemen's Award 1973 - 1990
13/1973
14(14)
  Government Water Supply, Sewerage and Drainage Employees Award 1981
2/1980
38(9)
  Hotel and Tavern Workers' Award, 1978
R 31/1977
21A
  Industrial Catering Workers' Award, 1977
29A/1974
22A
  Landscape Gardening Industry Award
R 18/1978
25A
  Marine Stores Award
13/1958
6A
  Meat Industry Award, 1980
R 9/1979
9A
  Metal Trades (General) Award 1966
13/1965
Part I - Cl. 31(6)
Part II - Cl. 10(8)
  Metropolitan Health Service Engineering and Building Services Enterprise Award 1999
A 1/1999
Append A(6)
  Mineral Sands Mining and Processing (Engineering and Building Trades) Award, 1977
6/1977
26A
  Mineral Sands Mining and Processing Industry Award, 1981
A 38/1981
28
  Minerals Production (Salt) Industry Award 1969
36/1968
26(4)
  Motel, Hostel, Service Flats and Boarding House Workers' Award, 1976
29/1974
21A
  Nickel Mining and Processing Award, 1975
18/1975
40
  Nickel Smelting (Western Mining Corporation Limited) Award, 1972
18/1972
25
  Optical Mechanics' Award, 1971
9/1970
24A
  Pastrycooks' Award No. 24 of 1981
24/1981
10(4)
  Plastic Manufacturing Award 1977
5/1977
22(7)
  Private Hospital Employees' Award, 1972
27/197
35
  Quadriplegic Centre Award
A 1/1993
27 Part C (1)(e)
  Quarry Workers' Award, 1969
13/1968
Cl. 27(6)
  Radio and Television Employees' Award
R 3/1980
29A
  Railway Employees' Award No. 18 of 1969
18/1969
44(9)
  Restaurant, Tearoom and Catering Workers' Award, 1979
R 48/1978
21A
  Saddlers and Leatherworkers' Award
7/1962
9A
  Saw Servicing Establishments Award No. 17 of 1977
17/1977
29
  Sheet Metal Workers' Award No. 10 of 1973
10/1973
6A
  Soft Furnishings Award
A 23/1982
7A
  Sugar Refining Award - The
A 41/1982
7(14)
  Timber Workers Award No. 36 of 1950
36/1950
52(9)
  Timber Yard Workers Award No. 11 of 1951
11/1951
30
  Tin and Associated Minerals Mining and Processing Industry Award No.14 of 1971
14/1971
31
  Vehicle Builders' Award 1971
9/1971
9(9)
  Wineries Award 1969
31/1969
7(5)
  Wire Manufacturing (Australian Wire Industries Pty. Ltd.) Award No.24 of 1970
24/1970
25(5)
  Wundowie Foundry Award 1986
A 8/1986
23(6)

5. THAT this General Order has no application to wage rates set out in clauses, schedules or appendices in the awards set out hereunder as these wage rates serve only to facilitate transitional or interim arrangements or the translation of wage rates to revised schedules. These clauses, schedules or appendices have no relevance to current rates of pay under the awards specified.

Awards





  Clerks’ (R.A.C. Control Room Officers) Award of 1988; No. A 42 of 1987

Appendix A - Translation Table
  Clothing Trades Award 1973; Award No. 16 of 1972

Clause 18.- Wages
  Club Workers’ Award, 1976, No. 12 of 1976

Subclause (4) of Clause 10A.– Translation of Casual Employees



Subclause (4) of Clause 21B.– Translation of Full-Time and Part-Time Employees
  Egg Processing Award 1978; Award No. R 42 of 1978

Appendix 4 – Transitional Arrangement
  Family Day Care Co-ordinators’ and Assistants’ Award, 1985; Award No. A 16 of 1985

Schedule C – Family Day Care Co-ordinators and Assistants Award Implementation of Minimum Rates Adjustment
  Gold Mining Engineering and Maintenance Award; Award No. 26 of 1947

Schedule II - Superseded Classification Structure and Definitions


Appendix I – Kalgoorlie Consolidated Gold Mines Pty Ltd
  Hotel and Tavern Workers’ Award, 1978; No. R 31 of 1977

Subclause (4) of Clause 10A.– Translation of Casual Employees


Subclause (4) of Clause 21B.– Translation of Full-Time and Part-Time Employees
  Motel, Hostel, Service Flats and Boarding House Workers’ Award, 1976, Award No. 29 of 1974

Subclause (4) of Clause 10A.– Translation of Casual Employees


Subclause (4) of Clause 20A.– Translation of Full-Time and Part-Time Employees
  Railway Employees' Award No 18 of 1969

Appendix A
Appendix C


Appendix D


Appendix E


Appendix F


Appendix G
  Railway Officers’ Award, 1985; No 1 of 1985

Schedule D - Transitional Provisions - Broadbanding of Salaries
  Restaurant, Tearoom and Catering Workers’ Award 1979; Award No. R 48 of 1978

Subclause (4) of Clause 10A. – Translation of Casual Employees


Subclause (4) of Clause 20A. – Translation of Full-Time and Part-Time Employees
  State Energy Commission of Western Australia Wages and Conditions Award, 1988; Award No. A 1 of 1989

Schedule 1


6. NOTWITHSTANDING the terms of clause 3 of this General Order, the arbitrated safety net adjustment of $17.00 per week or $15.00 per week shall not have application to wage rates in the Awards listed hereunder:

  ANI Engineering Bassendean (WA) Way Forward Enterprise Award 1998, No A2 of 1998
  Bradken Bassendean (WA) Way Forward Enterprise Award 2001, No A6 of 2001
  Clerks (Racing - Betting) Award 1978, No R 22 of 1977; Schedule C only
  Kalgoorlie Consolidated Gold Mines Award, 2002; Clause 10 only.






COMMISSION IN COURT SESSION
SCHEDULE

STATEMENT OF PRINCIPLES – June 2003


1. Role of Arbitration and the Award Safety Net

Existing wages and conditions in awards of the Commission constitute the safety net which protects employees who may be unable to reach an industrial agreement.

Wages and conditions of employment maintained in awards in accordance with these Principles and through the operation of section 40B of the Act are the safety net.

These Principles do not have application to Enterprise Orders made under section 42I of the Act.

2. When an Award may be varied or another Award made without the claim being regarded as above or below the Safety Net:

In the following circumstances an award or relevant agreement may, on application, be varied or another award made without the application being regarded as a claim for wages and/or conditions above or below the award safety net:

(a) to include previous State Wage Case increases in accordance with Principle 3.

(b) to incorporate test case standards in accordance with Principle 4.

(c) to adjust allowances and service increments in accordance with Principle 5.

(d) to adjust wages pursuant to work value changes in accordance with Principle 6.

(e) to reduce standard hours to 38 per week in accordance with Principle 7.

(f) to adjust wages for arbitrated safety net adjustments in accordance with Principle 8.

(g) to vary an Award or relevant Agreement to include the Minimum Adult Award Wage in accordance with Principle 9.

(h) a consent variation to a single enterprise specific award or a consent replacement award to a single enterprise specific award under Principle 10 giving effect to structural efficiency initiatives or productivity based arrangements.

(i) where awards already make provision for superannuation pursuant to principles which operated under State Wage Cases from 1986 until 1993 the terms of those clauses may be varied to refer to current Federal Statutes in lieu of employers’ contributions, but these clause shall not be varied otherwise.

(j) to vary the award to incorporate industrial agreement provisions into the award by consent pursuant to section 40A of the Act. The incorporated industrial agreement wage rate and allowance provisions will not be subject to arbitrated safety net adjustments and will be identified separately in the award at the time of variation.

3. Previous State Wage Case Increases

Increases available under previous State Wage Case Decisions such as structural efficiency adjustments, and previous arbitrated safety net adjustments will, on application, still be accessible.

Minimum rates adjustments may also be progressed under this principle.

4. Test Case Standards

Test Case Standards established and/or revised by the Commission may be incorporated in an award. Where disagreement exists as to whether a claim involves a test case standard, those asserting that it does, must make an application and justify its referral. The Chief Commissioner will decide whether the claim should be dealt with by a Commission in Court Session.

5. Adjustment of Allowances and Service Increments

Existing allowances which constitute a reimbursement of expenses incurred may be adjusted from time to time where appropriate to reflect the relevant change in the level of such expenses.

Adjustment of existing allowances which relate to work or conditions which have not changed and of service increments will be determined in each case in accordance with State Wage Decisions.

Allowances which relate to work or conditions which have not changed and service increments may be adjusted as a result of the arbitrated safety net increase in Clause 8 of this Section.

In circumstances where the Commission has determined that it is appropriate to adjust existing allowances relating to work or conditions which have not changed and service increments for a monetary safety net increase, the method of adjustment shall be that such allowances and service increments should be increased by a percentage derived as follows: divide the monetary safety net increase by the rate of pay for the key classification in the relevant award immediately prior to the application of the safety net increase to the award rate and multiply by 100.

Existing allowances for which an increase is claimed because of changes in the work or conditions will be determined in accordance with the relevant provisions of the Work Value Changes Principle of this Statement of Principles.

New allowances to compensate for the reimbursement of expenses incurred may be awarded where appropriate having regard to such expenses.

Where changes in the work have occurred or new work and conditions have arisen, the question of a new allowance, if any, shall be determined in accordance with the relevant principles of this Statement of Principles. The relevant principles in this context may be Work Value Changes Principle or First Award and Extensions to an Existing Award Principle.

New service increments may only be awarded to compensate for changes in the work and/or conditions and will be determined in accordance with the relevant parts of the Work Value Changes Principle of this Statement of Principles.

6. Work Value Changes

(a) Changes in work value may arise from changes in the nature of the work, skill and responsibility required or the conditions under which work is performed. Changes in work by themselves may not lead to a change in wage rates. The strict test for an alteration in wage rates is that the change in the nature of the work should constitute such a significant net addition to work requirements as to warrant the creation of a new classification or upgrading to a higher classification.

In addition to meeting this test a party making a work value application will need to justify any change to wage relativities that might result not only within the relevant internal award classifications structure but also against external classifications to which that structure is related. There must be no likelihood of wage "leapfrogging" arising out of changes in relative position.

These are the only circumstances in which rates may be altered on the ground of work value and the altered rates may be applied only to employees whose work has changed in accordance with this provision.

In applying the Work Value Changes Principle, the Commission will have regard to the need for any alterations to wage relativities between awards to be based on skill, responsibility and the conditions under which work is performed.

(b) Where new or changed work justifying a higher rate is performed only from time to time by persons covered by a particular classification or where it is performed only by some of the persons covered by the classification, such new or changed work should be compensated by a special allowance which is payable only when the new or changed work is performed by a particular employee and not by increasing the rate for the classification as a whole.

(c) The time from which work value changes in an award should be measured is the date of operation of the second structural efficiency adjustment allowable under the September 1989 State Wage Decision [69 WAIG 2917].

(d) Care should be exercised to ensure that changes which were or should have been taken into account in any previous work value adjustments or in a structural efficiency exercise are not included in any work evaluation under this provision.

(e) Where the tests specified in (1) are met, an assessment will have to be made as to how that alteration should be measured in money terms. Such assessment should normally be based on the previous work and the nature and extent of the change in work.

(f) The expression "the conditions under which the work is performed" relates to the environment in which the work is done.

(g) The Commission should guard against contrived classifications and over-classification of jobs.

(h) Any changes in the nature of the work, skill and responsibility required or the conditions under which the work is performed, taken into account in assessing an increase under any other provision of this Statement of Principles, shall not be taken into account in any claim under this provision.

7. Standard Hours

In approving any application to reduce standard hours to 38 per week, the Commission will satisfy itself that the cost impact is minimised.

8. Arbitrated Safety Net Adjustments

Where the minimum rates adjustment process in an award has been completed, the Commission may consider an application for the base rate, supplementary payment and arbitrated safety net adjustments to be combined so that the award specifies only the total minimum rate for each classification.

By consent of all parties to an award, where the minimum rates adjustment has been completed, award rates may be expressed as hourly rates as well as weekly. In the absence of consent, a claim that award rates be so expressed may be determined by arbitration.

The arbitrated safety net adjustment arising from the decision in Matter No 569 of 2003 is $17.00 per week for award rates up to and including $731.80; and $15.00 per week for award rates above $731.80 per week.

9. Minimum Adult Award Wage

A minimum adult award wage clause will be required to be inserted in any new award.
The minimum adult award wage clause will be as follows –

MINUMUM ADULT AWARD WAGE

(1) No adult employee shall be paid less than the minimum adult award wage unless otherwise provided by this clause.

(2) The minimum adult award wage for full time adult employees is $448.40 per week payable on and from 5 June 2003.

(3) The minimum adult award wage of $448.40 per week is deemed to include all arbitrated safety net adjustments from State Wage Case decisions.

(4) Unless otherwise provided in this clause adults employed as casuals, part time employees or piece workers or employees who are remunerated wholly on the basis of payment by result shall not be paid less than pro rata the minimum adult award wage according to the hours worked.

(5) Juniors shall be paid no less than the wage determined by applying the percentage prescribed in the junior rates provision to the minimum adult award wage of $448.40 per week.

(6) (a) The minimum adult award wage shall not apply to apprentices, employees engaged on traineeships or Jobskill placements or employed under the Commonwealth Government Supported Wage System or to other categories of employees who by prescription are paid less than the minimum award rate.

(b) Liberty to apply is reserved in relation to any special category of employees not included here or otherwise in relation to the application of the minimum adult award wage.

(7) Subject to this clause the minimum adult award wage shall –

(a) apply to all work in ordinary hours.

(b) apply to the calculation of overtime and all other penalty rates, superannuation, payments during any period of paid leave and for all purposes of this award.

(8) Minimum Adult Award Wage

The rates of pay in this award include the minimum weekly wage for adult employees payable under the 2003 State Wage Case Decision. Any increase arising from the insertion of the minimum adult award wage will be offset against any equivalent amount in rates of pay received by employees whose wages and conditions of employment are regulated by this award which are above the wage rates prescribed in the award. Such above award payments include wages payable pursuant to enterprise agreements, consent awards or award variations to give effect to enterprise agreements and over award arrangements. Absorption which is contrary to the terms of an agreement is not required.

Increases under previous State Wage Case Principles or under the current Statement of Principles, excepting those resulting from enterprise agreements, are not to be used to offset the minimum adult award wage.

(9) Adult Apprentices

(a) Notwithstanding the provisions of this clause, an apprentice, 21 years of age or over, shall not be paid less than $406.70 per week.

(b) The rate paid in paragraph (a) above is payable on superannuation and during any period of paid leave prescribed by this award.

(c) Where in an award an additional rate is expressed as a percentage, fraction or multiple of the ordinary rate of pay, it shall be calculated upon the rate prescribed in this award for the actual year of apprenticeship.

(d) Nothing in this clause shall operate to reduce the rate of pay fixed by the award for an adult apprentice in force immediately prior to 5 June 2003.

10. Making or Varying an Award or issuing an Order (other than an Enterprise Order under section 42I of the Act) which has the effect of varying wages or conditions above or below the safety net

An application or reference for a variation in wages or conditions above or below the safety net will be referred to the Chief Commissioner for him to determine whether the matter should be dealt with by a Commission in Court Session or by a single Commissioner.

A party seeking such a claim must support it with material justifying:

· why the matter has not been progressed and/or finalised pursuant to s.41 of the Act;
· why the matter has not been pursued under any other Principle set out in this Statement; and
· how in the discharge of its statutory function to consider varying above or below the safety net the Commission should take into account, to the extent that it is relevant, each of the matters identified in section 26 of the Act.

Provided that where parties to a single enterprise specific award apply to vary the award by consent or consent to a replacement award to give effect to structural efficiency initiatives or productivity based arrangements the Chief Commissioner may allocate the matter to a single Commissioner.

11. New Awards (including interim Awards) and Extensions to an existing Award

The following shall apply to the making of a new award (including an interim award) and an extension to an existing award:

(a) In the making of a new award, the main consideration shall be that the award meets the needs of the particular industry or enterprise while ensuring that employees' interests are also properly taken into account. Structural efficiency considerations shall apply in the making of such an award.

(b) Subject to section 36A(3) in the making of an interim award the Commission shall ensure that the award meets the needs of the particular industry or enterprise while ensuring that employees' interests are also properly taken into account. Structural efficiency considerations shall apply in the making of such an award.

(c) A new award (including and interim award) shall have a clause providing for the minimum award wage [see Clause 9 of this Section] included in its terms.

(d) In the extension of an existing award to new work or to award-free work the rates applicable to such work will be assessed by reference to the value of work already covered by the award, providing structural efficiency considerations including the minimum rates adjustment provisions where relevant have been applied to the award.

12. Economic Incapacity

Any respondent or group of respondents to an award may apply to reduce and/or postpone the variation which results in an increase in labour costs under this Statement of Principles on the ground of very serious or extreme economic adversity. The merit of such application shall be determined in the light of the particular circumstances of each case and any material relating thereto shall be rigorously tested. The impact on employment at the enterprise level of the increase in labour costs is a significant factor to be taken into account in assessing the merit of an application. A party making such an application must make and justify an application as a Special Case. It will then be a matter for the Chief Commissioner to decide whether it should be dealt with by a Commission in Court Session.

13. Duration

This Statement of Principles will operate until reviewed.