Fair Work Commission

Summary of research reports published for the Annual Wage Review 2009-10

An overview of compositional change in the Australian labour market and award reliance

David Rozenbes, Minimum Wage and Research Branch, Fair Work Australia

This paper analyses types of compositional change in the Australian labour market and in industrial arrangements with a particular focus on award reliance. It analyses compositional changes to separate labour market segments followed by a description of changes to award reliance. A comparison is then made between these changes to determine whether compositional change examined in the labour market had an effect on the proportion of employees reliant on awards.

Literature review on social inclusion and its relationship to minimum wages and workforce participation

Lucy Nelms and Dr Constantine Tsingas, Minimum Wage and Research Branch, Fair Work Australia

Under the Fair Work Act 2009, the minimum wages objective requires Fair Work Australia to establish and maintain a safety net of fair minimum wages, taking into account, amongst other factors, promoting "social inclusion through increased workforce participation". This is also a requirement of the modern awards objective. This paper reviews the concept of social inclusion and, in particular, the relationship between social inclusion and workforce participation.

Social research – Phase one

TNS Social Research

This project involves qualitative research that accesses the views and experiences of Australians directly affected by adjustments to minimum wages. The project comprises two waves of focus groups, in-depth interviews and online discussion forums with minimum wage reliant employees and employers of minimum wage reliant workers. Participants are sourced from a mix of metropolitan and regional locations across all states and territories.

This research report explores issues relevant to the minimum wages objective of the Fair Work Act 2009 and includes findings from the first stage of research conducted in November/December 2009.

Earnings of employees who are reliant on minimum rates of pay

Tom Bolton and Troy Wheatley, Minimum Wage and Research Branch, Fair Work Australia

This report provides detailed information on the earnings and occupational status of employees who are receiving minimum rates of pay, using data from the May 2006 Australian Bureau of Statistics' (ABS) Employee Earnings and Hours (EEH) survey.

The report describes the distributions of hourly ordinary-time earnings for various types of employees receiving minimum rates of pay. It finds that employees receiving minimum rates of pay are most likely to be employed as Community and personal service workers, Sales workers, and Labourers.

Employees with disability: Open employment and the Supported Wage System

Joelle Leggett, Shannon-Kate Archer and Elizabeth Leung, Minimum Wage and Research Branch, Fair Work Australia

This paper reviews the history of wage setting arrangements for employees with disability in open employment with and without affected productivity. It also reviews the development of the Supported Wage System (SWS) and the Fair Work Act 2009 annual wage review requirements in relation to employees with disability.

Research to be finalised after the Annual Wage Review 2009 10

Development of a research framework and data strategy

National Institute of Labour Studies, Flinders University

The objective of the project is to provide a framework that will facilitate research priorities to be identified.

The research framework will assist with understanding and evaluating how individual research projects complement other research and contribute to an understanding of minimum wage-setting issues.

This project will also incorporate a review of available data and information sources concerned with setting and adjusting minimum wages, identify relevant sources and gaps in data and information, and propose options for remedial strategies.

Enterprise-level case studies

Workplace Research Centre, University of Sydney

This three-wave longitudinal study will explore the effects of minimum wage setting at an enterprise level. The case studies will collect qualitative material from employers, employees and representative organisations; from a diverse range of enterprises that pay staff according to national minimum rates; and from a range of industries and business sizes, across both metropolitan and regional areas.

Information collected from enterprises will include information on organisational demographics; adjustment variables used to maintain business performance; effects of statutory minimum wages adjustments on business performance, and on the circumstances of employees; history and outcomes of enterprise wage-setting practices, including methods of wage setting; business performance indicators; and triggers for changes to business strategies and labour-use practices.

Review of productivity, business competitiveness and viability

Economic Analysis Section, Minimum Wage and Research Branch, Fair Work Australia

This project will review both the literature on and the available measures of productivity, business competitiveness and viability, and examine relevant medium-term trends in these measures.

Review of equal remuneration principles

Workplace Relations Analysis Section in collaboration with Safety Net Analysis Section, Minimum Wage and Research Branch, Fair Work Australia

This project will review principles of equal remuneration, particularly in the context of minimum wage setting. The project will include: a review of case law relating to the application of the equal remuneration principle and the Fair Work Act 2009 equal remuneration provisions; an overview of equal remuneration matters considered by minimum wage-setting bodies in wage-setting decisions; a review of international approaches to equal remuneration matters and a review of literature and research concerning equal remuneration in Australia and overseas.

Review of data on people earning below the transitional Federal Minimum Wage

Safety Net Analysis Section, Minimum Wage and Research Branch, Fair Work Australia

This project will outline the characteristics including earnings, hours worked, gender, age, industry and occupation of adult employees who earn below the Federal Minimum Wage. The research will explore possible explanations for this phenomenon, including survey reporting errors, significant sources of non-cash remuneration, unpaid overtime (which reduces measured hourly rates of pay), forms of employment outside the coverage of statutory wages-setting, and non-compliance.

Approaches to defining and measuring relative living standards and needs of low-paid employees

Safety Net Analysis Section, Minimum Wage and Research Branch, Fair Work Australia

This project will canvass possible approaches to defining and assessing the living standards of low-paid employees. Approaches previously used to derive income benchmarks (e.g. poverty lines, budget standards) and other possible indicators of living standards (e.g. assets, consumption, financial hardship and material deprivation) will be reviewed.

Industry profiles

Workplace Research Centre, University of Sydney

Profiles including both qualitative and quantitative components will be undertaken of the following industries:

• Administrative and support services
• Personal and other services.

These profiles will provide information on medium-term trends in these labour markets, as well as on the experiences of employers and employees in these industries.

Social research – Phase one and two

TNS Social Research

This project involves qualitative research to access the views and experiences of Australians who are directly affected by adjustments to minimum wages. The program comprises two waves of focus groups, in-depth interviews and online discussion forums with minimum wage reliant employees and employers of minimum wage reliant workers sourced from a mix of metropolitan and regional locations across all states and territories.

These findings will explore observed changes between the first stage and second stage of research conducted in February 2010 and also highlight issues relevant to subgroups of employees, including non-English speaking and indigenous Australians.

The research will be presented as consolidated findings across the two stages of research.

Apprentice wages

Workplace Relations Analysis Section, Minimum Wage and Research Branch, Fair Work Australia

This project will provide an overview of modern award provisions and pre-modern arrangements in relation to apprentice wages (the latter giving an overview of the diversity of arrangements within industries across states and territories). In particular, it will focus on reviewing:

• the diversity in apprenticeship duration
• the availability of school-based apprenticeships
• adult apprenticeship rates
• cases where there is consistency across tradesperson rates and variability across apprenticeship rates
• canvass competency progression issues in wage instruments as well as undertake qualitative research into the operation of competency based progression in industries where competency based progression exists, and
• review available data to develop a demographic profile of apprentices.

Expert Review Panel

Independent external academic comment is sought on research papers prepared by the Minimum Wage and Research Branch. To assist in identifying academics with expertise in relevant areas an Expert Review Panel has been established.

If you would like to be considered for inclusion in the Expert Review Panel, please complete the Expert Review Panel form (Word 81kb) and email the completed form to academicpanel@fwa.gov.au.