State Wage Case 2008

Executive, 25 August 2008

Report adopted

The NSW Industrial Relations Commission handed down the State Wage Case Decision in June 2008, awarding a 4% increase to award rates of pay and expense related allowances.

Importantly, the IRC also granted the application of the Catholic Commission for Employment Relations to establish a NSW Minimum Wage equal to the award review classification rate. The minimum wage will apply to all adult employees who are employed in the jurisdiction of the NSW Industrial Relations Commission and whose employment is not subject to the terms of an industrial instrument.

The newly established NSW minimum wage is $552.70 per week.

The minimum wage was established by way of order and is operative for six months. After that time the IRC will relist the matter for a full hearing regarding continuity of the order.

The Federal minimum wage set by the Australian Fair Pay Commission in July 2008 is $543.78 per week.

The only PSA award affected by the State Wage Case decision is the Crown Employees (Public Service Training Wage) Award 2005 which will be varied by application later this year, after a further decision of the IRC relating to wage calculations for training wage awards.

The dispute about the calculation of wages for State training wage awards relates to the SWC decision to award a percentage increase rather than a flat rate increase. Unions NSW and most employer organisations support a compromise position proposed by Vice President Walton, with the exception of Employers First, and so the matter will be the subject of a brief hearing before the Full Bench in September 2008.