On Friday the 19th of June 2020, the Fair Work Commission issued its decision for the Annual Wage Review 2019-20. The increase decided upon was 1.75%.
Due to the COVID-19 Pandemic, the Commission altered and extended its timetable, to allow it to make its decision on the national wage increase. They took into consideration the labour and economic markets focusing on data such as growth, productivity, and unemployment, as well as looking at the objectives of modern awards.
The Commission also allowed for external parties to also lodge submissions with their comments and views in relation to the wage review to be considered, prior to the final decision.
After all the relevant information being received, viewed, and discussed, the Commission decided that there should be a wage increase for businesses, of 1.75%. Yet, on the 1st of July 2020, there will be only a select number of industries receiving this increase.
Due to COVID-19 pandemic and the effect on industry in Australia, the commission decided it was only fair that industries were provided leniency due to the detrimental effect felt. As certain industries were affected more than others, wage increases will occur at 3 different times for differing industries.
The industries applicable modern awards, were allocated into 3 different groups. The dates of the wage increases for these groups are the following:
- Group 1 Modern Awards – First full pay period on or after the 1st of July 2020.
- Group 2 Modern Awards – First full pay period on or after the 1st of November 2020.
- Group 3 Modern Awards – First full pay period on or after the 1st of February 2021.
For members of the Victorian Farmers Federation (VFF), this means the 1.75 % annual wage increase will not affect your business on the 1st of July 2020, like usual. Members at the VFF are covered by modern awards allocated to either group 2 & 3 e.g. Pastoral Award 2010 and Horticulture Award 2010 will fall into group 2 (1st of November 2020).
The Workplace Relations Team at the VFF, will notify members prior to the effect date, of how they will be receiving their applicable wage sheets this year. Due to COVID-19, VFF staff are currently working remotely. Reliant on when return to work occurs, will determine if wage sheets are still sent via post or by other methods e.g. via members only section on website or via email.