The Fair Work Commission (FWC) has handed down its Annual Wage Review 2021-2022 Decision. Key elements of the Decision include:
Ai Group played a major role in the FWC’s Annual Wage Review 2021-2022, including strongly opposing the ACTU’s proposed 5.5% wage increase.
Ai Group filed four written submissions during the FWC proceedings and appeared before the Expert Panel at the Hearings.
Ai Group proposed a 2.5% minimum wage increase and argued that the FWC should take into account the 0.5% increase in the Superannuation Guarantee (SG) from 1 July, the removal of the $450 threshold for SG eligibility and the increase in the Low and Middle Income Tax Offset which will deliver the equivalent of a 1.3% increase in pre-tax income to an employee on the National Minimum Wage over the coming months.
In our media release, Ai Group expressed the view that the wage increase that the FWC has awarded is too high and risks fuelling inflation and leading to even higher interest rates. The cost increase will be difficult to absorb for businesses that are already struggling to cope with big increases in material and energy costs, interest rate rises, supply chain disruptions and labour shortages.
Over the next few weeks, Ai Group will distribute a Compliance Advice to Members on individual modern awards setting out the new wage rates and allowances once these are determined by the FWC.