1
Fair Work Act 2009
s.157—FWC may vary etc. modern awards if necessary to achieve modern awards objective
Review of certain C14 rates in modern awards
(C2019/5259)
JUSTICE ROSS, PRESIDENT MELBOURNE, 27 JULY 2022
Review of the classification rates at the C14 rate in modern awards – introductory rates –
further steps at Commission’s initiative – matter listed for conference.
[1] This statement concerns the review of modern awards which have classification rates at
the C14 rate which are either not transitional rates or where the transition period is not specified.
The C14 rate is equivalent to the National Minimum Wage (NMW) rate.
[2] The review has arisen following a statement issued on 28 August 20191 (the August
2019 Statement). The August 2019 Statement referred to an extract from the 2018-19 AWR
decision2 which noted that 45 modern awards included a rate of pay at the C14 rate. The NMW
is currently $812.60 per week or $21.38 per hour.3
[3] In the August 2019 Statement the 45 modern awards were divided into 5 categories
including:
those in which the C14 classification appeared to be transitional, but no particular
transition period was specified (category iv), and
those in which the C14 classification level was not a transitional level (category v).
[4] In the August 2019 Statement I expressed the provisional view that the modern awards
in categories (iv) and (v) be referred to a Full Bench for review. In such a review the Full Bench
would consider whether the C14 classifications in each of these awards provides a fair and
relevant safety net of terms and conditions. Parties were invited to comment on the provisional
view and the accuracy of the list of awards.
[5] The relevant awards are set out below:
1 [2019] FWC 5863.
2 [2019] FWCFB 3500.
3 Increases to minimum wages following the 2021-22 AWR will be applicable from 1 October 2022 for modern awards in the
aviation, tourism and hospitality sectors including the Air Pilots Award 2020.
[2022] FWC 1989
STATEMENT
AUSTRALIA FairWork Commission
https://www.fwc.gov.au/documents/decisionssigned/html/2019fwc5863.htm
https://www.fwc.gov.au/documents/decisionssigned/html/2019fwcfb3500.htm
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Category (iv)
Cement, Lime and Quarrying Award 20204
Concrete Products Award 2020
Meat Industry Award 2020
Oil Refining and Manufacturing Award 2020
Port Authorities Award 2020
Rail Industry Award 2020
Stevedoring Industry Award 2020
Category (v)
Air Pilots Award 2020
Broadcasting, Recorded Entertainment and Cinemas Award 2020
Dry Cleaning and Laundry Industry Award 2020
Funeral Industry Award 2020
Sugar Industry Award 2020
Travelling Shows Award 2020
[6] I note that the modern awards listed at [3] have been extensively varied since the August
2019 Statement, including as part of the 4 yearly review of modern awards, however the terms
of the awards relevant to this review remain substantively unchanged. A description and extract
of each relevant classification is set out in Attachment A.
[7] A number of unions and employer groups filed submissions in response to the August
2019 Statement.
[8] The MEAA indicated it would not be seeking to vary the Broadcasting, Recorded
Entertainment and Cinemas Award 2010 on the basis that the award did not have employee
classifications at the Grade 1 (C14) level.5 In these circumstances, it is my provisional view
that the references to the Grade 1 classification in the Broadcasting Award are obsolete and
should be deleted. It is my provisional view that the removal of the references to the Grade 1
classification is necessary to meet the modern awards objective.
[9] The CFMMEU – MUA Division indicated that it would not be seeking to vary the Port
Authorities Award 2010 or the Stevedoring Industry Award 2010 on the basis that the awards
were ‘in sufficient terms.’ It is my provisional view that these 2 awards will not be reviewed
further as part of this matter.
[10] A Statement was subsequently issued on 2 December 2019 (the December 2019
Statement) inviting the unions to make applications to vary the remaining awards in the manner
4 The Cement and Lime Award 2010 has been amalgamated with the Quarrying Award 2010 to become the Cement, Lime
and Quarrying Award 2020.
5 Transcript 29 November 2019 at [66].
https://www.fwc.gov.au/documents/sites/rates-c14-review/291119-c20195259.htm
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they proposed, however no applications or requests for assistance were received by the
Commission.
[11] The December 2019 Statement also noted that the ACTU intended to provide a written
request for the Commission to obtain certain statistical information from the Australian Bureau
of Statistics (ABS) Survey of Employee Earnings and Hours (EEH) as to the number of award
reliant employees in receipt of C14 level wages in the modern awards which were to be the
subject of the union applications.
[12] The ACTU submitted its request in correspondence dated 19 December 2019.
[13] The request sought an analysis of unpublished microdata from the ABS EEH survey.
[14] In its correspondence, the ACTU also commented that the form of the queries in the
request may need some revision based on feedback from the ABS.
[15] The Commission agreed to correspond with the ABS and requested that the ABS clarify:
whether the ACTU’s treatment of casual loading is appropriate; and
if a finer level of data can be analysed using data collected in the EEH survey but not
available as part of the microdata.
[16] The ABS responded to the Commission that:
it considers the treatment of casual loading a reasonable approach in identifying and
adjusting for employees that receive casual loading; and
it does not consider the data requested suitable for release.
[17] A copy of the ABS’ response was annexed to a further Statement issued on 10 December
20206 (the December 2020 Statement).
[18] Since this correspondence, the ABS has published the 2021 EEH survey data. In June
2022, the ABS published microdata which includes information about modern awards for the
first time. The microdata is available on the ABS website. Parties may wish to access the
microdata to assist with the review of C14 rates.
[19] In the December 2020 Statement the Commission said that it did not propose to take any
further steps in relation to the issue of the abovementioned C14 (or NMW) rates on its own
initiative at the time, but the offer of assistance to facilitate discussions remained open.
[20] No applications or requests for assistance have been received since the December 2020
Statement was issued. However, now that the 4 yearly review of modern awards is largely
complete, I have decided that the C14 rates in the following awards will be reviewed on the
Commission’s own motion:
6 [2020] FWC 6647.
https://www.abs.gov.au/statistics/microdata-tablebuilder/available-microdata-tablebuilder/employee-earnings-and-hours-australia
https://www.fwc.gov.au/documents/sites/rates-c14-review/2020fwc6647.pdf
[2022] FWC 1989
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Cement, Lime and Quarrying Award 2020
Concrete Products Award 2020
Meat Industry Award 2020
Oil Refining and Manufacturing Award 2020
Rail Industry Award 2020
Air Pilots Award 2020
Dry Cleaning and Laundry Industry Award 2020
Funeral Industry Award 2020
Sugar Industry Award 2020
Travelling Shows Award 2020
[21] The matter will be listed for conference before Commissioner Hampton to discuss:
the programming of the review, and
the provisional views at [8] and [9].
[22] A notice of listing will be issued shortly.
[23] I anticipate that the Commissioner will subsequently provide a Report to a Full Bench
on this matter.
PRESIDENT
Printed by authority of the Commonwealth Government Printer
PR744244
5
Attachment A
Award Classification Description Extract
Category (iv) awards
Cement and
lime industry,
Level 1
A Level 1 employee is
paid at the NMW (cl.
16.1). Schedule A.1.1
describes a Level 1
employee as ‘entry
level’ and ‘undertaking
Basic competency
training’
A.1.1 Level 1
A Level 1 employee is an entry level employee
without the necessary competency to be classified
in Levels 2 to 6 undertaking Basic competency
training.
Cement, Lime
and Quarrying
Award 2020
Quarrying
industry,
Grade 1
A Grade 1 employee is
paid at the NMW (cl.
16.2) Schedule B.1.1
describes a Grade 1
employee as
‘undertaking Basic
competency training’
B.1.1 Grade 1
A Grade 1 employee is an employee who is
undertaking training to become competent in the
Basic Quarry competency.
Concrete
Products Award
2020
Level 1 A Level 1 employee is
paid at the NMW (cl.
16.2). Schedule A.1.1
refers to ‘undertaking
the employer’s
induction programme’
A.1 Level 1
A.1.1 Undertaking the employer’s induction
programme which may include information on the
enterprise, conditions of employment, introduction
to supervisors and fellow employees, training and
career path opportunities, plant layout, work and
documentation procedures, work health and safety
and quality assurance.
A.1.2 Employees at this level perform routine
duties essentially of a manual nature and to the
level of their training;
(a) perform general labouring and cleaning
duties;
(b) exercise minimal judgment;
(c) work under direct supervision;
(d) may undertake structured training so as to
enable them to work at level 2; and
(e) within the limitations of the skill levels as
defined employees will be expected to be
responsible for the quality of their own work.
A.1.3 Classification descriptors
Operator of concrete mixing machine with
a rated capacity in excess of 0.4 cubic
metres (1/2 cubic yard approximately)
Automatic tile/ridge machine operator
Maker by hand of tiles, ridges, apexes and
starters
Pipe machine operator
Employee making pipe specials, i.e.
concreting junctions, splays or other
articles including the use of cortex and
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who may be required to work from plans
and/or specifications
Moulder special, employed working from
plans and specifications
Pre-stressed concrete—steel stressing
operator
Automatic block/brick machine operator
Off-bearer operator
Operator bending, cutting and/or fixing
bars, rods or reinforcement working from
plans
Exposed aggregate maker-finisher
(includes control of washing off of wet
concrete surfaces)
Coating machine operator
Meat Industry
Award 2020
MI 1 An MI 1 employee is
paid at the NMW (cl.
16.1). Schedule A.3.1
refers to an employee
at this level
‘undergoing on-the-job
training for an initial
period of at least 3
months’
A.3.1 Meat Industry Level 1
An employee at this level will be a person with no
experience in the industry undergoing on-the-job
training for an initial period of at least 3 months.
Oil Refining and
Manufacturing
Award 2020
Lubricants/
bitumen plants
and terminals,
Trainee
(level 1)
A Lubricants/bitumen
plants and terminals
trainee (level 1) is paid
at the NMW (cl. 16.1).
Schedule A.1.4
describes this as an
employee undergoing
the necessary
orientation and training
to enable safe and
efficient performance
as an operator
A.1.4 Lubricants/bitumen plants and
terminals
…
Trainee (level 1) … A trainee plant and terminal
operator is an employee undergoing the necessary
orientation and training to enable safe and efficient
performance as an operator.
Port Authorities
Award 2020
Level 1 A Level 1 employee is
paid at the NMW (cl.
15.1). Schedule A.1
describes an employee
at this level as having
‘completed induction’
A.1 Level 1
o Completed induction
o Works under detailed instruction
o Basic civil/maintenance work, mooring
deckhand, cleaning wharves and sheds
o Operating small plant, fork lifts (up to
10,000 kg), bob cats, sweepers, line
markers
Rail Industry
Award 2020
Operations
(Op), Level 1
Rail Worker
An Operations (Op)
Level 1 Rail Worker is
paid at the NMW (cl.
15.1). Schedule A
states that employees at
this level ‘undertake
and successfully
complete standard
induction training’
Schedule A—Classification Definitions
…
Operations Classifications
…
1 … Employees at this level undertake and
successfully complete standard induction training
and will be required to:
o Be responsible for personal safety and use
the protective equipment provided to
perform work safely.
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o Undertake a range of functions with a
basic knowledge of policies, procedures
and guidelines using a sound level of skill
to perform the functions.
o Perform routine customer service,
presentation and operations duties
requiring minimal judgment.
o Undertake tasks with direct supervision
and guidance.
Stevedoring
Industry Award
2020
Grade 1 A Grade 1 employee is
paid at the NMW (cl.
16.1). Schedule A.1
describes an employee
at this level as someone
‘who is undergoing
induction and initial
training prior to
appointment as a
stevedoring employee
Grade 2’
A.1 Grade 1
A Grade 1 employee is an employee who is
undergoing induction and initial training prior to
appointment as a stevedoring employee Grade 2.
Category (v) awards
Single engine
UTBN
1360 kg, First
Officers and
Second Pilots
First Officers and
Second Pilots of Single
engine UTBNI 1360 kg
are paid at the NMW
(Schedule A.1.1). It is
noted that there are
additions to salary in
A.1.3 and A.1.4 which
may mean that
employees receive an
amount greater than the
NMW.
No description
Single engine
1360 kg-
3359 kg, First
Officers and
Second Pilots
First Officers and
Second Pilots of Single
engine 1360 kg-3359
kg are paid at the
NMW (Schedule
A.1.1). It is noted that
there are additions to
salary in A.1.3 and
A.1.4 which may mean
that employees receive
an amount greater than
the NMW.
No description
Air Pilots
Award 2020
Aerial
application
pilot, 0-1000
flying hours
experience in
the industry
An Aerial application
pilot with less than
1000 hours of flying
experience is also paid
at the NMW (Schedule
C.9.1). It is noted that
there are additions to
salary in C.9.5 which
may mean that
employees receive an
amount greater than the
NMW.
C.1.1 Aerial application pilot means a pilot
holding an agricultural or aerial application
rating issued by CASA but does not include an
executive officer of the company.
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Broadcasting,
Recorded
Entertainment
and Cinemas
Award 2020
Entertainment
employee,
Grade 1
A Grade 1
entertainment
employee is paid at the
NMW (cl. 13.3).
Clause 13.2(a) suggests
that there may not be
any employees paid at
the Grade 1 rate under
the award.
No description
Dry Cleaning
and Laundry
Industry Award
2020
Dry cleaning
employee,
Level 1
A Dry cleaning
employee Level 1 is
paid at the NMW (cl.
18.1(a)
A.1 Dry cleaning employee Level 1
An employee who is below the level of a
tradesperson dry cleaner and is not within Levels 2
to 4.
Funeral
Industry Award
2020
Grade 1 A Grade 1 employee is
paid at the NMW (cl.
15.1)
12.1 Grade 1
(a) Funeral director’s assistant;
(b) coffin draper; or
(c) adult employee not mentioned elsewhere in
any of Grades 2 to 6.
Sugar Industry
Award 2020
C14/L2 The C14/L2-milling
general operator is paid
at the NMW (cl. 19.1).
B.1.1 Milling general operator—level 2 (C14)
(a) An employee at this level is required to:
(i) work under supervision;
(ii) exercise decision
making/responsibility within their level of
skill and training;
(iii) demonstrate awareness of general
quality control standards in particular
responsibility for their own work and
advise of quality control problems where
identified;
(iv) assist with on-the-job training;
(v) service and adjust equipment
according to their level of skill and
training and advise of any additional
maintenance required;
(vi) demonstrate general housekeeping
skills; and
(vii) demonstrate ability to use common
language skills to engage in
communication and to read and
understand written and oral instructions
plus prepare records that convey
information accurately and concisely.
(b) Indicative classifications would include,
for example:
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(i) General mill worker
(ii) Bagasse loftperson
(iii) Bagasse reclaimer operator
(iv) Carrier hand
(v) Greaser
(vi) Locomotive driver’s assistant
(vii) Tram construction and maintenance
worker
(viii) Watchperson
(ix) Bulk sugar loader
(x) Malcolm Moore driver’s assistant
(xi) Form setter’s assistant
BT1 The BT1 rate (cl 21.1)
applies to ‘new
starters’ who undertake
a 3 month probation
period
C.1 Bulk terminals employee level 1 (BT1)
New starter—basic labouring duties. This is
the level for a new terminal technician who
undertakes a 3 month probation period whilst
training and performing basic labouring
duties.
Travelling
Shows Award
2020
Grade 1 A Grade 1 employee is
paid at the NMW (cl.
16.1)
12.2 Grade 1
An employee at this level is employed as a ride
attendant and includes employees not otherwise
classified. An employee at this level:
(a) is responsible for the quality of their own
work, subject to routine supervision;
(b) works under routine supervision either
individually or in a team environment;
(c) performs tasks under general supervision,
exercising limited discretion within defined
procedures;
(d) performs work which is subject to final
checking and, as required, progress checking;
(e) is trained in, and applies, basic
quality/service requirements relating to their
own work and may be required to give general
inquiry assistance to the customer;
(f) has a good working knowledge of health
and safety procedures;
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(g) may require basic technical skills to
perform the work;
(h) is engaged in the operation of rides,
amusements, games, stalls or general
labouring duties as directed; and
(i) may carry out all work incidental,
peripheral or necessary for the proper conduct
of the business including driving a motor
vehicle, painting and digging.