Fair Work Commission

Pay Equity Unit

The Fair Work Commission established a Pay Equity Unit to undertake pay equity related research and provide information to inform matters relating to pay equity under the Fair Work Act 2009. In particular, related matters include:

• annual minimum wage reviews
• the 4 yearly reviews of modern awards, and
• equal remuneration cases.

Work Program 2014-15

The Pay Equity Unit finalised its research program for 2014-15. New research projects used data collected in the Australian Workplace Relations Study (AWRS) to investigate wage-setting matters with a focus on pay equity outcomes.

The Director of the Tribunal Services Branch established a research committee to consult on the research to be prepared and published as part of the Pay Equity Unit's 2014-15 Work Program. The research committee comprises representatives nominated by:

• Australian Chamber of Commerce and Industry (ACCI)
• Australian Industry Group (Ai Group)
• Australian Council of Trade Unions (ACTU)
• Australian Government's Department of Employment
• Australian Government's Office for Women, Department of Prime Minister and Cabinet
• Fair Work Ombudsman (FWO), and
• Workplace Gender Equality Agency (WGEA)

The following projects were undertaken as part of the 2014-15 Work Program:

Analysis and reporting of findings from the Australian Workplace Relations Study

Pay Equity Unit, Tribunal Services Branch, Fair Work Commission

The AWRS is a quantitative study of employers and employees in the national system of workplace relations. Data on a range of workplace relations matters was collected between February 2014 and July 2014 from just over 3,050 employers and 7,800 employees. Introductory analysis of the AWRS data is presented in a First Findings report that summarises key findings on the main themes covered in the AWRS, including:

• business conditions and performance
• wages and wage-setting
• pay equity matters, and
• characteristics and experiences of employees.

The First Findings report can be accessed from the Australian Workplace Relations Study page.

Conference exploring the Australian Workplace Relations Study data

The Fair Work Commission hosted a two-day conference in June 2015 focusing on research using the AWRS dataset.

The conference featured contributed and invited papers. Further information on the conference is available on the AWRS Conference 2015 website.

Earnings and characteristics of employees by gender and industrial arrangements

Workplace and Economic Research Section, Fair Work Commission

Using the AWRS and other data, the Earnings and characteristics of employees by gender and industrial arrangements report (PDF) addresses three research questions:

• How do earnings differ by gender?
• What are the characteristics of female and male employees?
• What are the characteristics of firms that employ female and male employees?

The exploration of these questions particularly focuses on variation between employees by method of setting pay (award, enterprise agreement or individual arrangement).

Low-paid women's workforce participation decisions and pay equity

Melbourne Institute of Applied Economic and Social Research, University of Melbourne

This research examines a range of influences and constraints on low-paid women’s workforce participation decisions (to work or not work, hours of work, extended leave periods and type). It also explores the impact, if any, of women’s workforce participation decisions on pay equity outcomes.

The Low-paid women's workforce participation decisions and pay equity report (PDF) uses Household Income and Labour Dynamics in Australia (HILDA) and AWRS data to address the following research questions:

• What are the characteristics of low-paid women, and how do they differ from high-paid women, or from low-paid and high-paid men? Namely, what are their personal characteristics, family characteristics and current job characteristics (including the method of setting pay in their current job), as well as their work histories and future work experiences?
• What characteristics and circumstances impact on or constrain low-paid women’s workforce participation decisions? How do their personal and family characteristics, as well as current job characteristics (including the method of setting pay) impact on their future decisions to work or not to work or how many hours to work?
• What effect do past workforce participation decisions have on their pay and employment outcomes, and on pay equity? What role do other personal or family characteristics, as well as past job characteristics (including method of setting pay) play?

Other published research

Equal remuneration research report

The Fair Work Commission's Pay Equity Unit commissioned Adelaide Research and Innovation Pty Ltd to prepare the Equal Remuneration under the Fair Work Act 2009 (PDF) report (the ER Report).

The authors of the ER Report are:

• Dr Robyn Layton AO QC, Adjunct Professor School of Law University of SA
• Dr Meg Smith, Senior Lecturer, University of Western Sydney, and
• Professor Andrew Stewart, Professor of Law, University of Adelaide.

Building on previous Commission research for Research Report 5/2011 – Review of equal remuneration principles (PDF), and drawing on the Equal Remuneration Case 2010-12, the ER Report explains key constructs, identifies the usefulness of material parties may bring to equal remuneration proceedings, and directs parties to key resources which may be relevant to an equal remuneration case.

The ER Report is the product of independent research by the authors, and the views it contains are those of the authors, not of the staff or Members of the Commission.