Fair Work Commission

Overview

Fair Work Commission staff in the Workplace and Economic Research Section of the Tribunal Services Branch may conduct research as part of the annual wage review. On 30 September 2014, the Expert Panel outlined its medium-term research program following a process where interested parties were invited to submit proposals and participate in consultations.

In undertaking the research program, the Workplace and Economic Research Section consults a Minimum Wages Research Group comprising a chair from the Section and representatives nominated by:

• Australian Chamber of Commerce and Industry (ACCI)
• Australian Industry Group (Ai Group)
• Australian Council of Social Service (ACOSS)
• Australian Council of Trade Unions (ACTU)
• Australian Government
• state and territory governments.

In addition to research projects, statistical reporting is also undertaken on a range of data relevant to annual wage reviews. This work will be published separately from the research reports.

Research published for the 2014-15 review

Award reliance and business size: a data profile using the Australian Workplace Relations Study

Workplace and Economic Research Section

This report provides a data profile of Australian businesses using the Australian Workplace Relations Study (AWRS) and the Award Reliance Survey. It presents information on the characteristics and performance of businesses by business size and degree of award reliance and as such provides further understanding of the way businesses operate in Australia. The linked nature of the AWRS is utilised to analyse the characteristics of employees within businesses.

Research reference list

Workplace and Economic Research Section

The list references Australian and international literature (such as working papers, journal articles or other types of published reports) relevant to the minimum wages and modern awards objectives. The list encompasses relevant literature published between March 2014 and March 2015.

Award Reliance Survey data release

ORC International

In 2013, the Award Reliance Survey was undertaken on behalf of the Fair Work Commission by the Workplace Research Centre (WRC) at the University of Sydney Business School, in collaboration with ORC International.

Data and analysis from the survey were presented in two research reports, Research Report 6/2013 – Award reliance and Research Report 7/2013 – Minimum wages and their role in the process and incentive to bargain, both published on 20 December 2013.

The confidentialised dataset and supporting materials are available, upon request, for use by researchers and the public, for the purpose of analysing award-reliant employers and wage-setting arrangements.

The Award Reliance Survey Data user manual provides more information on the scope of the survey and data items.

To apply for the confidentialised dataset, please complete the Application and Deed of Licence for access to the Award Reliance Survey and submit it to surveyresearch@fwc.gov.au.

Future research

The following research projects will be undertaken to inform future annual wage reviews.

The impact of changes in the national minimum wage and award rates of pay on employment and hours worked

Pursuant to the Expert Panel’s medium-term research program, a tender process was commenced on 2 September 2014 to procure research to address the following question:

• What is the impact of changes in the national minimum wage and award rates of pay on employment and hours worked?

The procurement process has concluded, and the outcome is that no contract has been awarded.

An international comparison of minimum wages and labour market outcomes

This project would be a quantitative investigation that would compare the labour market outcomes of countries similar to Australia with relatively high and low minimum wages. This may be undertaken by comparing particular employment indicators, including for those of low-paid workers. These indicators would include unemployment and underemployment rates, employment to population ratios, labour market transitions (between low paid jobs and unemployment), the minimum wage bite, average earnings and the distribution of earnings for groups that are relatively more likely to be low paid.

The timing of the finalisation of this research will be dependent on more detailed scoping of the project.

The youth labour market

This project would involve an analysis of the characteristics of the youth labour market, including comparisons over time. Characteristics would include employment type, hours worked, educational attainment, and industry and occupation of those employed. Differences in unemployment and underemployment between youth who are and who are not full-time students would also be explored. Analysis would be performed using various Australian data sources. A literature review on the causes of youth unemployment may also be included.

The timing of the finalisation of this research will be dependent on more detailed scoping of the project.

The characteristics of the underemployed and unemployed

This project would track the changes over time in the extent of underemployment for those who are employed part-time, and its relation with unemployment. It would compare and analyse the characteristics of persons who are underemployed with persons unemployed, including over time. The characteristics that would be considered include gender, age, student status, location, industry and occupation. For underemployed workers, the characteristics for analysis would also include method of setting pay, hours worked and work schedules. It would seek information on the duration of underemployment and mobility to alternative employment states.

The timing of the finalisation of this research will be dependent on more detailed scoping of the project.

Pay Equity Unit research

The Expert Panel’s medium term research program noted that the Commission’s Pay Equity Unit (Unit) had research underway that is relevant to annual wage reviews. This research would be published in time for the Annual Wage Review 2015-16.

Further information on the Unit’s research is available on the Unit’s section of the Commission’s website:

Previous research

Research material from past annual wage reviews is available.