Research

 

Overview

Fair Work Australia's Minimum Wages and Research Branch is required to conduct research as part of the annual wage review.

The research program for the Annual Wage Review 2010-11 was finalised in a statement on 1 October 2010 following a process where interested parties were invited to submit proposals.

In undertaking the research program, the Minimum Wages and Research Branch consults a Minimum Wage Research Group comprising a chair from the branch and representatives nominated by:

  • Australian Chamber of Commerce and Industry (ACCI)
  • Australian Industry Group (Ai Group)
  • Australian Council of Social Service (ACOSS)
  • Australian Council of Trade Unions (ACTU)
  • Australian Government
  • State and Territory Governments.

In addition to research projects, statistical reporting is also undertaken on a range of data relevant to annual wage reviews. This work is published separately to the research reports.

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Research reports published for the 2010-11 review

Research report summaries

7/2010 – Enterprise Case Studies: Effects of minimum wage-setting at an enterprise level

Workplace Research Centre, University of Sydney

This three-wave longitudinal study explores the effects of minimum wage-setting at an enterprise level. The case studies collect qualitative material from employers, employees and representative organisations; from a diverse range of enterprises that pay staff according to national minimum rates; and from a range of industries and business sizes, across both metropolitan and regional areas.

Information collected from enterprises includes information on organisational demographics; adjustment variables used to maintain business performance; effects of statutory minimum wages adjustments on business performance, and on the circumstances of employees; history and outcomes of enterprise wage-setting practices, including methods of wage setting; business performance indicators; and triggers for changes to business strategies and labour-use practices.

8/2010 & 9/2010 – Industry profiles

Workplace Research Centre, University of Sydney

Profiles including both qualitative and quantitative components will be undertaken of the following industries:

  • Administrative and support services
  • Personal and other services.

These profiles will provide information on medium-term trends in these labour markets, as well as on the experiences of employers and employees in these industries.

10/2010 – Consolidated Social Research Report

TNS Social Research

This project involves qualitative research to access the views and experiences of Australians who are directly affected by adjustments to minimum wages. The program comprises two waves of focus groups, in-depth interviews and online discussion forums with minimum wage-reliant employees and employers of minimum wage-reliant workers sourced from a mix of metropolitan and regional locations across all states and territories.

These findings explore observed changes between the first stage and second stage of research conducted in February 2010 and also highlight issues relevant to subgroups of employees, including non-English speaking and indigenous Australians.

The research is presented as consolidated findings across the two phases.

1/2011 – An overview of productivity, business competitiveness and viability

Economic Research Team, Minimum Wages and Research Branch, Fair Work Australia

This project will review both the literature on and the available measures of productivity, business competitiveness and viability, and examine relevant medium-term trends in these measures.

2/2011 – Relative living standards and needs of low-paid employees: definition and measurement

Safety Net Research Team, Minimum Wages and Research Branch, Fair Work Australia

This project will canvass possible approaches to defining and assessing the living standards of low-paid employees. Approaches previously used to derive income benchmarks (e.g. poverty lines, budget standards) and other possible indicators of living standards (e.g. assets, consumption, financial hardship and material deprivation) will be reviewed.

3/2011 – Employees earning below the Federal Minimum Wage: Review of data, characteristics and potential explanatory factors

Safety Net Research Team, Minimum Wages and Research Branch, Fair Work Australia

This project will outline the characteristics including earnings, hours worked, gender, age, industry and occupation of adult employees who earn below the Federal Minimum Wage. The research will explore possible explanations for this phenomenon, including survey reporting errors, significant sources of non-cash remuneration, unpaid overtime (which reduces measured hourly rates of pay), forms of employment outside the coverage of statutory wages-setting, and non-compliance.

4/2011 – Research framework and data strategy

National Institute of Labour Studies, Flinders University

The objective of this project is to provide a framework that will facilitate research priorities to be identified.

The research framework will assist with understanding and evaluating how individual research projects complement other research and contribute to an understanding of minimum wage-setting issues.

This project will also incorporate a review of available data and information sources concerned with setting and adjusting minimum wages, identify relevant sources and gaps in data and information, and propose options for remedial strategies.

5/2011 – Review of equal remuneration principles

Workplace Relations Research Team in collaboration with Safety Net Research Team, Minimum Wages and Research Branch, Fair Work Australia

This project will review principles of equal remuneration, particularly in the context of minimum wage setting. The project will include: a review of case law relating to the application of the equal remuneration principle and the Fair Work Act 2009 equal remuneration provisions; an overview of equal remuneration matters considered by minimum wage-setting bodies in wage-setting decisions; a review of international approaches to equal remuneration matters and a review of literature and research concerning equal remuneration in Australia and overseas.

6/2011 Australian apprentice minimum wages in the national system

Workplace Relations Research Team, Minimum Wages and Research Branch, Fair Work Australia

Since 2006, the Australian Government has defined 'Australian Apprentices' to be people undertaking an Australian Apprenticeship that 'combine[s] training and employment [which] can lead to a nationally recognised qualification'. Australian Apprentices can encompass employees in a wide variety of occupations and training with differing qualifications from any accreditation. However, some analysis draws a distinction between a 'traineeship' (an arrangement that does not lead to a trade qualification) and a 'traditional' apprenticeship (an arrangement that results in a trade qualification).

This project will principally provide an overview of modern award provisions and pre-modern arrangements in relation to 'traditional' apprentice wages (the latter giving an overview of the diversity of arrangements within industries across states and territories). The project will also review the historical development of traineeships and state regulation. A review of the data will examine the demographics of Australian apprenticeships disaggregated by traineeships and traditional apprenticeships.

Research to be finalised after the 2010-11 review

Research question

The Minimum Wage Panel is interested in investigating the following research question:

'Do differences in the quantum of minimum wage adjustments in the federal and state industrial relations jurisdictions in 2009 provide an opportunity for robust research into the employment impact of minimum wage adjustments?'

A member of the Panel will consult on possible research methodologies and data availability with a range of researchers and academics in the first instance.

Award-reliance

Workplace Research Centre, University of Sydney in collaboration with ORC International

This project will primarily examine national system organisations in which at least one employee has their pay set at the specified award rate. The key objective of the study is to understand the mix or ‘categories’ of such employees and, where possible, their location on award classification scales. A particular focus of the research will be to identify professionals and other employees on higher award classifications whose pay is set at the specified award rate. The study will consist of a quantitative survey of such organisations. Data will be gathered on the size and structure of these organisations, the nature of employment arrangements within these organisations as well as information on bargaining activity within them.

Workplace Relations Research Team, Minimum Wages and Research Branch, Fair Work Australia

This project will provide in-depth qualitative analysis of the factors leading to, and resulting from, award wage reliance among a collection of workers in higher award classification/professional employment. The objectives of the research will be met by examining the experiences of higher classification award wage-reliant workers, and will have a particular focus on professionals. Data collection and analysis will occur over two phases that will assist in informing the design of a quantitative survey of award wage reliance.

Minimum wages and their role in the process and incentive to bargain

Workplace Research Centre, University of Sydney

This project will examine how minimum wage increases impact on over award wages and the incentive to bargain. The study will include enterprise case studies, the content analysis of enterprise agreements, and the generation and statistical analysis of workplace survey data. This multi-method approach will be used to investigate the motivations, processes and outcomes of wage setting at the workplace level, and examine the role that the minimum wages increases play in shaping agreement-making and over award wage determination.

Minimum wage-reliant small businesses

Research will be conducted into the impact of minimum wage increases on small minimum wage-reliant businesses.

Extent and composition of award reliance by gender

This research will analyse Australian data on award reliance and equal remuneration issues. The research will include published and unpublished data from the Australian Bureau of Statistics (ABS).

Updated time

Last updated

29 February 2016

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