Review of C14 and C13 rates in modern awards

In the 2018-19 Annual Wage Review proceedings, the ACTU and ACBC contended that the Expert Panel should set the C14 rate at a level which lifted certain hypothetical single earner household types above the 60% relative poverty line. This contention was rejected, however in the course of addressing the contention advanced, the Expert Panel raised an issue for further examination.

The Expert Panel noted that 45 modern awards include a rate of pay at the C14 (or National Minimum Wage, NMW). Of these 45 awards, the classification at the NMW appears to be transitional in 8 modern awards but no particular transition period is specified, and not transitional in 6 modern awards.

On 28 August 2019, the President issued a Statement [2019] FWC 5863 and expressed a provisional view that the 14 awards identified above should be referred to a Full Bench for review. The list of awards are set out at paragraph [5] of the Statement. In the review, the Full Bench will 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 President’s provisional view set out at paragraph [5] of the Statement
• the accuracy of the list of awards at paragraph [5]
• in relation to the 8 modern awards not appearing to specify a particular transition period – what transition period the interested party proposes, and
• in relation to the 6 modern awards not containing a transitional arrangement – whether the C14 classification levels in these awards provide a fair and relevant safety net and if there has there been any work value determination of these classifications.