The 2019 State Wage Case and Equal Remuneration Principle
The Western Australian Industrial Relations Commission has increased the State Minimum Wage by 2.75% which brings the State Minimum Wage to $746.90 per week from 1 July 2019. The Commission also increased award wages by 2.75% from that time.
The increases apply only to employees who are paid the minimum wage or award rates in the State industrial relations system. Approximately 27,000 employers and more than 300,000 employees are estimated to be affected by the decision.
In making its decision, the Commission is required to consider a broad range of economic and labour market factors, and social and equity considerations. Last year the Commission noted that Western Australia was likely to have reached the bottom of the economic cycle of the last few years which had seen a reversal of the fortunes that were experienced by the State during the resources and infrastructure investment boom.
The Western Australian economy is now in the process of improving from that trough and there are signs of growth. However, Western Australia’s economy compares unfavourably with the rest of the national economy, and in that context, the national economy also has its challenges.
The Commission also considered an application for the creation of a principle to deal with claims for equal remuneration for men and women for work of equal or comparable value. The Commission has examined the proposed principle and are satisfied that it is appropriate for inclusion in the Statement of Principles.
Relevant criteria
In making its decision, the Commission is required to consider the need to —
- ensure that Western Australians have a system of fair wages and conditions of employment; and
- meet the needs of the low paid; and
- provide fair wage standards in the context of living standards generally prevailing in the community; and
- contribute to improved living standards for employees; and
- protect employees who may be unable to reach an industrial agreement; and
- encourage ongoing skills development; and
- provide equal remuneration for men and women for work of equal or comparable value.
It is also required to consider:
- the state of the economy of Western Australia and the likely effect of its decision on that economy and, in particular, on the level of employment, inflation and productivity in Western Australia; and
- to the extent that it is relevant, the state of the national economy; and
- to the extent that it is relevant, the capacity of employers as a whole to bear the costs of increased wages, salaries, allowances and other remuneration; and
- the need to ensure that the Western Australian award framework represents a system of fair wages and conditions of employment; and
- relevant decisions of other industrial courts and tribunals; and
- any other relevant matters.
People interested in making a submission are invited to address those issues.
Who is covered by the 2019 State Wage Case General Order?
The General Order applies to those employers and employees covered by the WA industrial relations system. To find out if you are covered by the state system, or for further information on your employment conditions, please contact Wageline on 1300 655 266.