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Safety Net Review 2003

 

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Table of contents

On this page

  • Introduction
  • Procedures
  • Notice of listings
  • Transcript
  • Decisions
  • ACCI
  • ACTU
  • AIG
  • Commonwealth
  • State/Territories
  • Other parties & interveners
  • Exhibits

Introduction

This site provides links to submissions, transcript and other material for the Safety Net Review 2003.

  • Safety Net Review – Wages 6 May 2003, Decision [PR002003]
  • Safety Net Review – Wages 6 May 2003, Statement
  • Statement & Directions – 19 December 2002 

Procedures

  • Statement of 12 February 2002
  • Procedures for this site

Notice of listings

  • Notice of Listing – 16 December 2002
  • Notice of Listing (hearing dates) – 19 December 2002

Transcript

  • 16 December 2002
  • 31 March 2003
  • 1 April 2003
  • 2 April 2003
  • 3 April 2003
  • 4 April 2003

Decisions

  • Safety Net Review May 2002 – 9/5/2002
  • Safety Net Review May 2001 – 2/5/2001
  • Safety Net Review May 2000 – 1/5/2000
  • Safety Net Review April 1999 – 29/4/99
  • Safety Net Review April 1998 – 29/4/98
  • Safety Net Review April 1997 – 22/4/97
  • Furnishing and Glass Industries Allowances decision [Print M9675] – 21/03/1996
  • Third Safety Net Adjustments and Section 150A Review October 1995 – 10/10/95
  • Safety Net Adjustments and Review September 1994 – 29/9/94
  • Review of Wage Fixing Principles November 1993 – 15/11/93
  • Review of Wage Fixing Principles October 1993 – 25/10/93
  • National Wage October 1991 – 30/10/91
  • National Wage April 1991 – 16/4/91
  • National Wage August 1989 – 7/8/89
  • February 1989 Review – 25/5/89
  • National Wage August 1988 – 12/8/88
  • National Wage February 1988 – 5/2/88
  • National Wage December 1987 – 17/12/87
  • National Wage March 1987 – 10/3/87
  • National Wage June 1986 – 26/6/86
  • National Wage November 1985 – 4/11/85
  • National Wage April 1985 – 4/4/85

ACCI

Correspondence 

  • Correspondence from ACCI to the AIRC, dated 22 April 2003, regarding additional and updated economic material
  • Correspondence from ACCI to the ACTU, dated 27 March 2003, regarding paragraphs [R6.31] to [R6.37] of the ACCI reply submission of 25 March 2003
  • 5 March 2003
  • 13 December 2002

Submissions

Submission – February 2003 (PDF)

1 Introduction

1.1

2 Statutory Considerations

2.1

 

Introduction

2.1

 

The Safety Net Concept

2.1

 

A Safety Net Targeted to the Low Paid

2.3

 

Balancing Economic and Needs Consideration Equally

2.10

 

Conclusion

2.13

3 The Australian Economy

3.1

 

Underemployment

3.3

 

ACCI Business Barometer

3.7

 

National Accounts

3.8

 

Business Investment

3.9

 

Employment

3.10

 

Inflation

3.18

 

Private Sector Earnings

3.19

 

Capital Account and Interest Rates

3.21

 

Overview on the Economy

3.22

4 Economic Indicators

4.1

 

Table 1: Gross Domestic Product

4.5

 

Table 2: Gross Domestic Product – Market Sector

4.7

 

Table 3: Non Farm Gross Domestic Product

4.7

 

Table 4: Agricultural Gross Value Added

4.7

 

Table 5: Private Consumption Expenditure

4.8

 

Table 6: Total Private Investment Growth Fixed Capital

4.8

 

Table 7: Dwellings Investment

4.9

 

Table 8: Non Dwelling Investment

4.9

 

Table 9: Machinery and Equipment Investment

4.10

 

Table 10: Private Business Investment

4.10

 

Table 11: Actual and Expected Capital Expenditure in Current Prices

4.11

 

Table 12: Exports and Imports

4.12

 

Table 13: Total Employment

4.12

 

Table 14: Full-Time Employment

4.15

 

Table 15: Part-Time Employment

4.16

 

Table 16: Unemployment

4.16

 

Table 17: Unemployment Rate

4.17

 

Table 18: Consumer Price Index

4.18

 

Table 19: Wage Cost Index

4.19

 

Table 20: Real Wage Cost Index

4.20

 

Table 21: Average Weekly Ordinary Time Earnings

4.21

 

Table 22: Real Full-Time Adult Ordinary Time Earnings

4.21

 

Table 23: GDP Per Hour Worked

4.22

 

Table 24: Market Sector GDP Per Hour Worked

4.22

 

Conclusion on the Economy

4.23

5 Employment, Wages And The Safety Net

5.1

 

Unemployment and Real Incomes

5.2
 

The Nature of Australian Unemployment

5.6

 

Survey on Employment Effects

5.8

 

What are the Lessons?

5.9

6 Drought

6.1

7 Geopolitical Risk

7.1

 

The World

7.4

 

Australia

7.9

 

The Lessons of History

7.14

 

The State and Territory Governments

7.16

 

The ACTU

7.18

 

How the Commission Should Proceed

7.20

8 Costing The Claim

8.1

9 Academic Discussion Of Minimum Wages

9.1

 

Comments on`A Survey Of The Literature Of Minimum Wages' by Steve Dowrick and John Quiggin

9.1

 

NSBR Commentary On Minimum Wages

9.6

 

NBER – Minimum Wages and Wage Distribution

9.8

10 Needs And The Low Paid

10.1

 

The Workplace Relations Act 1996 and Needs

10.1

 

ACTU Witness Evidence

10.6

 

No Relation to Capacity to Pay

10.31

 

Effect on Prices

10.32

 

Effect on Employment

10.34

 

Needs of the Low Paid

10.35

 

Calculating the Real Wage

10.37

 

Conclusion

10.39

 

ACTU Contentions On Fertility

10.43

11 Survey On The Safety Net

11.1

 

Weighted Full Survey Results

11.5

 

Firms Where No Safety Net Increase Granted

11.7

 

Firms in which Safety Net Increases were Granted

11.8

12 Job Security

12.1

 

Job Security versus Increased Wages

12.1

 

Security and Wages

12.3

13 Executive Salaries – A Persistent And Convenient Obfuscation

13.1

 

First Things First – Executives and CEOs are Not The Ones Who Will Pay Any Award Wage Increase

13.2

 

There Is Nothing In The Act To Support The Comparison Proposed

13.6

 

The Commission No Longer Looks To Such Issues (To The Extent It Ever Did)

13.23

 

Executive Salaries Reflect A Unique Range Of Considerations

13.24

 

Executive Salary Outcomes – Fact, Fiction and So What?

13.30

 

The ACTU's Survey Of Its Members On Executive Salaries

13.37

 

This is Not a Zero Sum Game: Executive Gain ¹Employee Loss

13.42

 

Does The ACTU Propose We Follow The Snakes As Well As The Ladders?

13.49

 

Salaries and Allowances Tribunal

13.54

14 Labour On-Costs

14.1

 

Labour On-Costs

14.1

 

Superannuation

14.5

15 Other Issues

15.1

 

Additional Considerations

15.1
 

Principles

15.10
 

Supported Wage Minimum Payment

15.10

 

Award Only Employment

15.13

 

Award Employment and Wage Mobility

15.19

 

ACTU Newspaper Articles

15.23

16 State / Territories Submission

16.1

 

State and Territory Governments Reject The ACTU Claim

16.1

 

Inconsistency & Contradiction

16.3

 

State and Territory Legislation

16.3

 

Global Economic Outlook and Geopolitical Risk

16.4

 

Drought

16.6

 

Needs of the Low Paid

16.9

 

Conclusion

16.10

Reply submission

Reply submission – March 2003 (PDF)

1. Update On The Economy

1.1

 

The Economy is Not as Robust as it was Last Year

1.1

 

Looking to the Year Ahead

1.3

 

Labour Force Statistics

1.5

 

Final Comments on the Economy

1.11

2. The Safety Net And Economic Outcomes

2.1

 

Safety Net Increases Have Consequences

2.1

 

Labour Market

2.4

 

Underemployment

2.6

 

Investment

2.9

 

Current Account Deficit

2.11

 

Consumer Price Index

2.12

 

Conclusion

2.13

3. ACCI Survey On The Safety Net

3.1

 

There is More Evidence of Harm than Found in our Surveys

3.1

 

Reply to Professor Gordon's Analysis

3.3

 

Response Rates To Commercial Surveys

3.10

 

Understanding the Statutory Context

3.15

 

Other Methodological Flaws

3.20

4. Age Economic Forecasts

4.1

 

Age Forecasts on Economic Indicators

4.1

 

Additional Age Forecasts

4.2

5. Minimum Wages

5.1

 

Employment Responses To Minimum Wage Increases

5.2

 

Distribution Of Poverty And Minimum Wages

5.3

 

Own Business And Poverty

5.4

 

Who Is Affected By Unemployment?

5.6

 

Putting Statements Into Perspective

5.9

 

Adjusting Award Rates is Different from Adjusting the Minimum Wage

5.10

6. Costing The Claim

6.1

 

Distributional Considerations in Award Wage Increases

6.1

 

Understanding the Aggregate Costings

6.2

 

Increases in a Firm's Wages Bill if ACTU Claim is Granted

6.2

 

Increases in the Economy's Wages Bill Due To $24.60 Claim

6.4

 

Public Sector Should Be Excluded

6.6

 

ACTU's Average Cost Increase To The Average Firm

6.7

 

Average Cost Increase To The Non-Average Firm

6.9

 

The Use of Total AWOTE or AWTE

6.10

 

ACTU Costing of Private Sector

6.11

 

Cost of the Claim to the Firm

6.13

 

ACCI Costing of the Claim

6.14

7. UK Low Pay Commission

7.1

 

Introduction

7.1

 

Australia Has The Highest Minimum Wages In The World

7.1

 

A Genuine Safety Net

7.3

 

The Timing Of Minimum Wage Increases

7.4

 

A Focus On Small Business

7.4

 

Indirect Effect

7.5

 

Research

7.5

 

Implementation of Increases

7.7

 

Conclusion

7.8

8. Needs Of The Low Paid

8.1

 

ACTU Witness Material

8.1

 

Intervening Organisations

8.6

 

Witnesses – Fallacious Comparisons

8.11

 

Witnesses – Conclusions

8.12

 

Small Business Employers – A Fair Go For Low Income Earners

8.13

9. Other Issues

9.1

 

War

9.1

 

Drought

9.4

 

Principles – Economic Incapacity

9.6

 

Industry Submissions

9.7

 

Industry Submissions – Consideration Under the WR Act 1996

9.12

 

Executive Salaries

9.16

  • Tag A: Updated Economic Data (March 2003)
  • Tag B: Answers to The Age Supplementary Questions, Provided by ACCI Chief Economist Dr Steven Kates to The Age (December 2002).
  • Tag C: The National Minimum Wage, Fourth Report of the Low Pay Commission – United Kingdom (March 2003), Secretary of State for Trade and Industry by Command of Her Majesty [Appendix 4] – “Low Pay Commission Survey of Employers”.
  • Tag D: The National Minimum Wage, Fourth Report of the Low Pay Commission – United Kingdom (March 2003), Secretary of State for Trade and Industry by Command of Her Majesty [Appendix 5] – “Minimum Wage Systems in Other Countries”.
  • Tag E: ABC PM Programme / Steven Long (2003), “Long term uncertainty in the world’s markets”, 21 March 2003, ABC Online.
  • Tag F: DEWR Vacancy Report (March 2003), Department of Employment and Workplace Relations
  • Tag G: DEWR Leading Indicator of Employment (March 2003), Department of Employment and Workplace Relations

ACTU

ACTU – draft directions – 16 December 2002 (PDF)

Correspondence

  • Correction to submission – 12 February 2003 (PDF)
  • Correction to submission – 14 February 2003 (PDF)
  • UK Low Pay Commission Information – March 2003 (PDF)

Submissions 

Submission – February 2003 (PDF) (includes corrections to submission)

1 Introduction

 

Last Year's Safety Net Increase and Current Economic Conditions

 

This Year's Claim and Economic Prospects

 

Life for the Low Paid is a Struggle

 

Characteristics of Award Only Workers

 

A Fair Go

2 Characteristics of Award Only Employees

 

Declining Proportion of Award Only Employees

 

Award Only Employees are Predominantly Private Sector

 

Gender, Age and Employment Type

 

Industry Sector

 

Occupations

 

Earnings

3 Wages Update

 

Introduction

 

Trends in Wages Growth in the Australian Economy

 

Management and Executive Remuneration

 

Remuneration Tribunal Decisions

 

Comparing Recent trends in Wages Growth

 

How have award dependent workers fared ?

4 The ACTU Claim is Moderate

 

Introduction

 

Costing the Claim

 

The Level of Increase for Award Workers

5 Economic Conditions and Outlook

 

Current Economic Conditions

   

Economic Growth

   

Composition of economic growth

   

Aggregate Demand

   

Private Consumption

   

Private Investment Expenditure

   

The Business Sector

   

Company Profits

   

The Labour Market

   

Labour Productivity

   

Wages

   

Prices

   

The external sector

 

Economic Outlook and Prospects

   

The Outlook for the Domestic Economy

   

Economic Growth

6 Economic Effects

 

Macroeconomic Effects

 

Microeconomic Effects

   

Employment

   

Output

   

Productivity

 

A Survey of the Literature on Minimum Wages

7 Needs of the Low Paid

 

Introduction

 

Witness Evidence

 

Expenditure is moderate and focussed on necessities

 

Going Without, and Difficulty Affording Necessities

 

Financial difficulties

 

Low Paid Jobs are Hard Work

 

Low income and Australia's declining fertility rate

 

Low Wage Jobs and Wage Mobility

 

Interaction of Safety Net Adjustments and the Tax/Transfer System – Effective Marginal Tax Rates

   

What Really Happened to George and Julie and John and Cathy?

   

Effective Marginal Tax Rates for individuals earning wages and salaries

8 Conclusion

Appendix A: An Overview of Wage Measures in Australia

 

Measures of Aggregate – Economy Wide Wage Movements

 

So which is the Best Indicator of Wage Movements?

 

Measures of Wages Growth Within Sections of the Economy

   

Indicators of award rates of pay

   

Measures of wages adjusted through enterprise agreements

List of Figures

 

Figure 3.1: Average Weekly Earnings – comparisons – 1983 to 2002

 

Figure 3.2: Growth in the AENA wages measure – 1972 to 2002

 

Figure 3.3: Wage Cost Index – Total Hourly Rates of Pay, excluding bonuses 1997 to 2002.

 

Figure 3.4: Employees covered by a Federal Wage Agreement (all current agreements)

 

Figure 3.5: Average Annual Wage Increase per employee for agreements certified in the current quarter

 

Figure 3.6: Average Annual Wage Increase per employee (for all current agreements)

 

Figure 3.7: Average Annual Wage Increase per agreement – for all agreements registered during the quarter

 

Figure 3.8: Quarterly Wage Movements: September 1992 to 2002

 

Figure 3.9: Quarterly wage trend comparisons – September 1997 to 2002

 

Figure 3.10: Annual Growth in C14, C10 and AWOTE

 

Figure 3.11: Wages Growth Comparison – AWOTE, C10, and C14

 

Figure 3.12: Growth in the C10 rate as a proportion of AWOTE growth

 

Figure 3.13: Growth in the C14 rate as a proportion of AWOTE growth

 

Figure 3.14: C10 and C14 as a proportion of AWOTE

 

Figure 5.1: Yearly GDP and GNFP Growth – 1990 to 2002 (seasonally adjusted estimates)

 

Figure 5.2: Quarterly GDP and GNFP Growth – 1996 to 2002 (seasonally adjusted estimates)

 

Figure 5.3: Comparison of past three economic expansions

 

Figure 5.4: International comparisons of Real GDP growth (1995-2004)

 

Figure 5.5: Real GDP Growth (cumulative 1994 to 2004) International Comparisons

 

Figure 5.5: Contributions to Australian GDP Growth

 

Figure 5.6: Company profits before income tax 1991 to 2002 ($ millions)

 

Figure 5.7: Gross Operating Surplus – Australia 1996 to 2002

 

Figure 5.8: Wage and Profit shares of total factor income – 1974 to 2002

 

Figure 5.9: Total Employment – Australia – 1996 to 2002.

 

Figure 5.10: Total Employment – Australia – 1996 to 2002.

 

Figure 5.11: Unemployment rate – Australia – 1991 to 2002.

 

Figure 5.12: International Comparisons of employment growth

 

Figure 5.13: Cumulative employment growth in OECD economies 1993 to 2002

 

Figure 5.14: Labour Productivity growth – Australia – 1979 to 2002

 

Figure 5.15: Quarterly CPI growth – December 1991 to December 2002

 

Figure 5.16: OECD Employment growth forecasts – 2003 and 2004 International comparisons

 

Figure 6.1: Employment Growth – industry comparisons -1996 to 2002

 

Figure 6.2: Industry comparisons of gross value added growth, 2001-02

 

Figure 6.3: Productivity – Gross product per hour worked – industry comparisons of growth during 2001-02

 

Figure 7.1: Estimated proportion of individuals with earnings facing different ranges of EMTRs

List of Tables

 

Table 2.1: Comparison Pay Setting Methods for Employees

 

Table 2.2: Characteristics of Award Only and All Employees

 

Table 2.3: Industry Sector data for Award Only Employees

 

Table 2.4: Occupational data for Award Only Employees

 

Table 2.5: Comparison Average Weekly Earnings by Pay Setting Method ($ per week)

 

Table 2.6: Average Hourly Ordinary Time Earning by Pay-Setting Method ($ per week)

 

Table 4.1: Cost Impact of the ACTU Claim

 

Table 4.2 Gross impact various safety net adjustments.

 

Table 4.3: Net impact various safety net adjustments.

 

Table 4.4: Commonwealth Government estimates of cost impact of Commission decision.

 

Table 4.5: Average Increases for Award Workers

 

Table 4.6: Average Real Increases in Award Wages

 

Table 4.7: Comparison Various Wage Measures

 

Table 4.8: Increases Selected Metal Industry Award Classifications

 

Table 4.9: Real Increases Selected Award Rates

 

Table 5.1: MYEFO Domestic Economic Forecasts(a)

 

Table 5.2: MYEFO Key Economic Forecasts and Projections(a)

 

Table 7.1: Witness Length of Employment

 

Table 7.2: Witness Age

 

Table 7.3: Estimated proportion of individuals with earnings, classified by family type, in EMTR ranges

 

Table 7.4: Percentage of individuals with earnings in families with EMTR in ranges below greater than 40 and 60 per cent

 

Table 7.5: EMTRs of individuals with earnings according to their deciles of gross family income

 

Table 7.6: EMTRs of individuals with earnings

 

Table 7.7: Estimated percentage distribution of individuals with earnings, classified by labour market status, in EMTR ranges

Composite exhibits

Composite exhibits – February 2003 (PDF)

1.  Economic Conditions – Tables and Commentary
2.  Mid-Year Economic and Fiscal Outlook 2002-2003 (Extract)
3.  EEH Survey
4.  ACTU Costing
5.  Average Increases Award Workers 2000-2003
6.  Increases in Metal Industry Rates 1997-2003
7.  Employment Growth Chart
8.  Dowrick, S., and Quiggin, J., “A Survey of the Literature on Minimum Wages”, February 2003
9.  Newspaper Articles:

  • “Fast and Fastidious” Sydney Morning Herald,Tuesday 7 January 2003, p.14.
  • “Yuk! And May all your Trouble be Wee Ones" The Age, Tuesday 14 January 2003, p.8. 
  • “Fertility Crisis: Why you can’t Blame the Blokes” The Age, 17 January 2003, Opinion page.

10.  “Low Wage Jobs & Pathways to Better Outcomes”, Sue Richardson assisted by Lauren Miller-Lewis, National Institute of Labour Studies Monograph Series Number 7.
11.  The AIG Examples Revisited.

Witness statements

Witness statements – February 2003 (PDF) 

Reply submission

Reply Submission – March 2003 (PDF) (includes corrections to reply submission, 1 April 2003)

R1 Introduction

 

The Economy

 

Last year's $18 increase

 

The Economic Impact of the ACTU claim

 

Needs of the Low Paid

 

A Fair Go

R2 Characteristics of Award Only Employees

R3 Wages Update

 

Introduction

   

Average Weekly Earnings

   

Average Earnings on a National Accounts Basis (AENA)

   

Wage Cost Index

   

Agreements

   

Executive Salaries

R4 The ACTU Claim is Moderate

 

Introduction

 

Costing the Claim

   

Direct Costs

   

Indirect Costs

 

The Level of Increase for Award Workers

R5 Economic Update

 

Economic Conditions

   

Economic Growth – the December quarter national accounts

   

The Business Sector

   

The Labour Market

   

Wages

   

Inflation

 

Economic Prospects

   

AiG and ACCI outlooks for the Australian economy

   

Investment Intentions

   

The Labour Market

   

Inflation outlook

   

The Possible war with Iraq

   

Drought

R6 Economic Effects

 

Macroeconomic Effects

 

Microeconomic Effects

   

Employment

   

Profits

   

Productivity

 

Surveys on the Impact of the Safety Net

 

A Survey of the Literature on Minimum Wages

 

Conclusion

R7 Needs of the Low Paid

 

Introduction

 

Witness Evidence

 

Low paid jobs are hard work/Fertility

 

Interaction of Safety Net Adjustment and the Tax/Transfer System -Effective Marginal Tax Rates

 

Minimum Wages are a critical floor

 

Living Standards

 

Commonwealth Capping Proposal

R8 Other Matters

 

Industry Specific Submissions

 

AiG Miscellaneous Matters

 

Supported Wage Minimum Payment

 

The submissions of DEAC and NCID

List of Figures

 

Figure R5.1: Company Profits before tax – Australia – 1991 to 2002 ($m)

 

Figure R5.2: Gross Operating Surplus – Australia 1996 to 2002

 

Figure R5.3: Wage and Profit Share of National Income: 1974 to 2002

 

Figure R5.4: Employment Growth – 1996 to 2003

 

Figure R5.5: Unemployment Rate – Australia – 1991 to 2003

List of Tables

 

Table R1.1: Key Economic Indicators Comparison

 

Table R1.2: Commonwealth Modelling of macroeconomic effects of ACTU claim1

 

Table R4.1: Comparison Various Wage Measures (updated)

 

Table R4.2: Percentage Increase in Award Rates

 

Table R4.3: Real Wage Cuts under ACCI, AiG and Commonwealth proposals

 

Table R5.1: What the ACCI really thinks about the Australian Economy

 

Table R6.1: Commonwealth Modelling of macroeconomic effects of ACTU claim

 

Table R6.2: Changes in average annual productivity growth 1990-93 and1993-2002

 

Table R7.1: Witness Expenditure on Necessities

Reply composite exhibit

Reply composite exhibits – March 2003 (PDF)

1.  Economic Conditions – Tables and Commentary (update)
2.  Box A: Economic Effects of the Drought
3.  Correspondence re Commonwealth Macroeconomic Modelling
4.  Analysis of Survey Evidence
5.  Further Material re RMI Survey
6.  Brief CV’s of Professor Dowrick and Quiggin

Supplementary submission

Supplementary submission – 28 March 2003 (PDF)

AIG

Submissions 

Submission - February 2003 (PDF)

1.

Introduction

2.

Ai Group's Position

3.

Economic Conditions and Outlook

4.

The Relationship Between the Award Safety Net and the Broader Social Safety Net

5.

Impact of the ACTU Claim

6.

Need for an AIRC Survey

7.

Other Factors Supporting Ai Group's Position

8.

Skills-based Classification Structures and Relativities

9.

Principles

10.

Conclusion

  • Annexure A: Ai Group Survey, “Business Prospects for Australian Manufacturing in 2003” (PDF Format)
  • Annexure D: "Economic Outlook", Glenn Stevens, Deputy Reserve Bank Governor (Word Format)
  • Annexure G: Ai Group Australian PMI Survey, January 2003 (PDF Format)
  • Annexure H: "Statement on Monetary Policy", Reserve Bank of Australia, February 2003 (PDF Format)
  • Annexure I: Ministerial Consultation Paper, "Building a Simpler System to Help Jobless Families and Individuals", Commonwealth of Australia, 2002 (PDF Format)
  • Annexure J: Effective Marginal Tax Rates and Actual Benefit Ratios faced by Low Income Households (PDF Format)
  • Annexure K: Ai Group Wages Survey Questionnaire (PDF Format)
  • Annexure L: Ai Group Survey Report on the Impact of the May 2002 Safety Net Review Decision, February 2003 (PDF Format)
  • Annexure M: Data supplied by DEWR from Workplace Agreements Database (WAD) (Excel Format)

Reply submission

Reply submission - March 2003 (PDF)

1.

Introduction

2.

Economic Issues

3.

Needs of the Low Paid

4.

Assessing the Impact of the ACTU Claim

5.

Impact upon Enterprise Bargaining

6.

Retrospective Wage Adjustments

7.

Conclusion

  • Annexure A - "Economic Performance and Issues in 2003", Address to the Australian Industry Group Forum on 5 March 2003 by Malcolm Edey, Assistant Governor (Economic), Reserve Bank of Australia
  • Annexure B - Additional Labour Costs - Sensitivity Analysis

Commonwealth

Correspondence 

  • Correspondence to the AIRC - 22 April 2003 (PDF) Responses to questions and requests taken on notice:
    • Revised figures sent out 28 March 2003 (PDF)
    • Update of Appendix C Pay setting methods (PDF)
    • Response to Questions from oral hearings (PDF)
    • DEWR leading indicator (PDF)
    • More further questions (PDF)

Submissions

Submission - February 2003 (PDF)

Section 1:

Commonwealth Position

Section 2:

Economic Outlook

Section 3:

Wages And Earnings Developments

Section 4:

Wage And Employment Trade-Off

Section 5:

Minimum Wage Debate

Section 6:

Estimated Employment Impact

Section 7:

Sectoral Impact

Section 8:

Workplace Bargaining And Productivity

Section 9:

Living Standards

Appendixes

 

Appendix A:

Wage Cost Impact

Appendix B:

Growth Of Agreement Making

Appendix C:

Pay Setting Methods

Reply submission - March 2003 (PDF)

Section 1:

Commonwealth Position

Section 2:

Economic Outlook

Section 3:

Wages And Earnings Developments

Section 4:

Wage And Employment Trade-Off

Section 5:

Minimum Wages And Employment

Section 6:

Estimated Employment Impact

Section 7:

Sectoral Impact

Section 8:

Workplace Bargaining And Productivity

Section 9:

Living Standards

Appendixes

 

Appendix A:

Statistical Summary

Appendix B:

Treasurer's Press Release

Updated Data and Commentary - 28 March 2003 (PDF) (Includes Appendix C - Pay Setting Methods)

State/Territories

Submission - February 2003 (PDF)

Chapter 1: Introduction

Chapter 2: Legislative Background

 

Introduction

 

Workplace Relations Act 1996

 

Legislation of the States and Territories

 

New South Wales

 

Victoria

 

Queensland

 

South Australia

 

Western Australia

 

Tasmania

 

Northern Territory

 

Australian Capital Territory

Chapter 3: Economic Performance And Outlook

 

Introduction

 

National economic performance and outlook

 

Economic performance and outlook for the States and Territories

 

Gross State Product

 

Consumption

 

Dwelling investment

 

Business investment

 

Tourism

 

Labour market

 

Inflation

 

Wage Costs

 

Summary

 

New South Wales

 

Victoria

 

Queensland

 

South Australia

 

Western Australia

 

Tasmania

 

Northern Territory

 

Australian Capital Territory

Chapter 4: Support For An $18 Increase

 

Introduction

 

Economic factors considered by the Commission

 

Quantum of the increase

 

Needs of the low paid

Chapter 5: Conclusion

Other parties & interveners

Submissions

  • Australian Catholic Commission for Employment Relations (ACCER) (PDF) 
  • Australian Council of Social Service (ACOSS) (PDF)
  • Disability Employment Action Centre (DEAC)/ National Council on Intellectual Disability (NCID) (PDF)
  • Master Plumbers' and Mechanical Services' Association of Australia (MPMSAA) (PDF) 
  • Motor Trade Associations (PDF)
    • Appendix 1. Small Business Employment
    • Appendix 2. Horwath Profit Focus Overview 2002 Full Year Summary
    • Appendix 3. AC Nielsen National Survey Results 2003
    • Appendix 4. Effect Of The Drought On Rural Members
    • Appendix 5. Quarterly Economic Reports: VACC, MTA SA, MTA NSW

National Farmers' Federation

Submission - February 2003 (PDF)

  • Attachment 1. Australian Rainfall Deciles 1 November 2002 – 31 January 2003-02-24 National Climate Centre
  • Attachment 2. Australian Rainfall Deciles January 2003 National Climate Centre
  • Attachment 3. Relevant Sections of ABARE, Australian Commidities: Forecasts and Issues December Quarter 2002
  • Attachment 4. ABARE, Australian Crop Report 18 February 2003
  • Attachment 5. Reserve Bank of Australia, Statement on Monetary Policy February 2003 Graph 30, p24
  • Attachment 6. National, Quarterly Agribusiness Survey December Quarter 2002
  • Attachment 7. Department of Agriculture, Fisheries and Forestry Australia, Exceptional Circumstances Frequently Asked Question January 2003
  • Attachment 8. Bureau of Rural Science EC and Prima Facie EC Areas as at 20 February 2003
  • Attachment 9. Bureau of Rural Science Extent of a One in Twenty Year Drought Event March 2002 – November 2002
  • Attachment 10. NSW Rural Assistance Authority and Department of Agriculture, Fisheries and Forestry Australia Application for Exceptional Circumstances Assistance
  • Attachment 11. Centrelink Newstart Payment Rates 1 January – 19 March 2003
  • Attachment 12. Centrelink New Commonwealth Package for Drought Affected Farmers – Overview
  • Attachment 13. Centrelink New Income Support Arrangements for Drought Affected Farmers
  • Attachment 14. Centrelink Stock Support and Drought Recovery Assistance – Interest Rate Relief
  • Attachment 15. Centrelink Claim for Additional Assistance for Drought Affected Farmers
  • Attachment 16. Centrelink Commonwealth Drought Relief for Small Business
  • Attachment 17. Centrelink Drought Assistance, Claim for Small Business Interest Rate Relief
  • Attachment 18. Media Release Hon Warren Truss MP, Minister for Agriculture, Fisheries and Forestry “More Farmers Getting Federal Drought Aid” 20 February 2003

Reply Submission - March 2003 (PDF)

  • Attachment 1. Hon Peter Costello MP, Federal Treasurer Press Release No. 10 5 March 2003
  • Attachment 2. Sections of ABARE, Australian Commodities Vol. 10 No.1 March Quarter 2003
  • Attachment 3. Bureau of Rural Science Map Rainfall required by the end of May 2003
  • Attachment 4. Commonwealth Bureau of Meterology Map Probability of exceeding median rainfall: March to May 2003
  • Attachment 5. Agriculture, Fisheries and Forestry Australia Summary Slide from Agricultural Finance Forum 12 March 2003
  • Attachment 6. Bureau of Rural Science Map Exeptional Circumstances (EC) Declared Boundaries as at 21 March 2003
  • Attachment 7. Media Release Hon Warren Truss MP, Minister for Agriculture, Fisheries and Forestry “Federal Drought Relief Spending Continues to Rise” 21 March 2003
  • Attachment 8. Media Release Senator the Hon Amanda Vanstone, Minister for Family and Community Services “Extra Help for Drought Affected Communities and Individuals” 19 November 2002
  • Attachment 9. Centrelink, www.centrelink.gov.au Help for Farm Hands

Printing Industries Association of Australia – February 2003 (PDF)

Western Australian Farmers Federation Industrial Association

  • Submission – February2003 (PDF)
  • Reply Submission – March 2003 (PDF) 

Correspondence

ACCER

  • 25 February 2003 (PDF)

ACOSS

  • 31 January 2003 (PDF)

DEAC/NCID

  • 18 December 2002 (PDF)
  • 24 December 2002 (PDF)
  • 24 January 2003 (PDF)
  • 28 January 2003 (PDF)
  • 4 April 2003 (PDF)

MPMSAA

  • 25 February 2003 (PDF)

UnitingCare Employer Advisory Service

  • 5 December 2002 (PDF)

Exhibits

Australian Chamber of Commerce and Industry (ACCI)

ACCI 1

16/12/02

S Barklamb

List of Authorities

ACCI 2

1/4/03

P Anderson

Submissions - 26 February 2003

ACCI 3

1/4/03

P Anderson

Reply Submissions - 25 March 2003

ACCI 4

1/4/03

S Kates

ACCI Oral Submission on the Economy:

  • "No excuse for war deficit: Labor" ABC news
  • "Costello leaves chance of war deficit open" ABC news
  • Tag A: Updated Economic Data - March 2003
  • Tag B: Answers to The Age Supplementary Questions
  • Other additional economic tables

ACCI 5

2/4/03

S Kates

"Exports and housing to dent growth" Financial Review, 2 April 2003

ACCI 6

3/4/03

S Kates

Labour Force, Australia Preliminary 6202.0, January 2003, Page 1-2

 

Australian Catholic Commission Employment Relations (ACCER)

ACCER 1

1/4/03

F Costigan

Submissions - 25 F

Australian Chamber of Commerce and Industry (ACCI)

ACCI 1

16/12/02

S Barklamb

List of Authorities

ACCI 2

1/4/03

P Anderson

Submissions – 26 February 2003

ACCI 3

1/4/03

P Anderson

Reply Submissions – 25 March 2003

ACCI 4

1/4/03

S Kates

ACCI Oral Submission on the Economy:

  • "No excuse for war deficit: Labor" ABC news
  • "Costello leaves chance of war deficit open" ABC news
  • Tag A: Updated Economic Data – March 2003
  • Tag B: Answers to The Age Supplementary Questions
  • Other additional economic tables

ACCI 5

2/4/03

S Kates

"Exports and housing to dent growth" Financial Review, 2 April 2003

ACCI 6

3/4/03

S Kates

Labour Force, Australia Preliminary 6202.0, January 2003, Page 1-2

 

Australian Catholic Commission Employment Relations (ACCER)

ACCER 1

1/4/03

F Costigan

Submissions – 25 February 2003

Australian Council of Trade Union (ACTU)

ACTU 1

31/3/03

A Watson

Submissions – 5 February 2003

ACTU 2

31/3/03

A Watson

Witness Statements – 5 February 2003

ACTU 3

31/3/03

A Watson

Composite Exhibit – 5 February 2003

ACTU 4

31/3/03

A Watson

Written Reply Submission – 17 March 2003

ACTU 5

31/3/03

A Watson

Reply Composite Exhibit – 17 March 2003

ACTU 6

31/3/03

A Watson

Supplementary submission – 28 March 2003

ACTU 7

31/3/03

A Watson

UK Report

ACTU 8

1/4/03

A Watson

Table of Hours Worked 1999-2002

ACTU 9

1/4/03

A Watson

Notes from ABS Labour Force 6202.0 February 2003

ACTU 10

4/4/03

A Watson

(ABS) Job Vacancies – Feb 2003

ACTU 11

4/4/03

A Watson

Australian Grains Industry article from abareconomics

ACTU 12

4/4/03

A Watson

Employee Earnings and Hours, 6306.0, May 2002

Australian Industry Group (AiG) and Engineering Employers’ Association, South Australia

AiG 1

2/4/03

M Moir

Submissions – February 2003

  • Annexure A: Ai Group Survey, “Business Prospects for Australian Manufacturing in 2003” (PDF Format)
  • Annexure D: "Economic Outlook", Glenn Stevens, Deputy Reserve Bank Governor (HTML Format)
  • Annexure G: Ai Group Australian PMI Survey, January 2003 (PDF Format)
  • Annexure H: "Statement on Monetary Policy", Reserve Bank of Australia, February 2003 (PDF Format)
  • Annexure I: Ministerial Consultation Paper, "Building a Simpler System to Help Jobless Families and Individuals", Commonwealth of Australia, 2002 (PDF Format)
  • Annexure J: Effective Marginal Tax Rates and Actual Benefit Ratios faced by Low Income Households (PDF Format)
  • Annexure K: Ai Group Wages Survey Questionnaire (PDF Format)
  • Annexure L: Ai Group Survey Report on the Impact of the May 2002 Safety Net Review Decision, February 2003 (PDF Format)
  • Annexure M: Data supplied by DEWR from Workplace Agreements Database (WAD) (Excel Format)

     

AiG 2

2/4/03

M Moir

Reply Submission – March 2003

  • Annexure A - "Economic Performance and Issues in 2003", Address to the Australian Industry Group Forum on 5 March 2003 by Malcolm Edey, Assistant Governor (Economic), Reserve Bank of Australia
  • Annexure B - Additional Labour Costs – Sensitivity Analysis

     

Commonwealth

Cmwlth 1

3/4/03

E R Cole

Submission – 26 February 2003

Cmwlth 2

3/4/03

E R Cole

Reply Submission – 25 March 2003

Cmwlth 3

3/4/03

E R Cole

Revised material

Cmwlth 4

3/4/03

E R Cole

Economic Data Released Since MYEFO Forecast comparison: Mid-Year Economic and Fiscal Outlook (MYEFO) and Consensus Forecasts (October 2002 and March 2003)

Cmwlth 5

4/4/03

E R Cole

House of Representatives, Official Hansard, No. 3, 2003, Wednesday, 5 March 2003

Cmwlth 6

4/4/03

E R Cole

Commonwealth Supplementary Material

Disability Employment Action Centre (DEAC) and National Council on Intellectual Disability (NCID)

DEAC 1

1/4/03

K Wilson

Submissions – 18 February 2003

DEAC 2

1/4/03

K Wilson

Witness Statements – 18 February 2003

DEAC 3

1/4/03

K Wilson

3 Folders of Exhibits – 18 February 2003

PIAA

PIAA 1

3/4/03

J Hargrave

Submission – 25 February 2003

National Farmers’ Federation (NFF)

NFF 1

3/4/03

D Harris

Submission – 26 February 2003

  • Attachment 1. Australian Rainfall Deciles 1 November 2002 – 31 January 2003-02-24 National Climate Centre
  • Attachment 2. Australian Rainfall Deciles January 2003 National Climate Centre
  • Attachment 3. Relevant Sections of ABARE, Australian Commidities: Forecasts and Issues December Quarter 2002
  • Attachment 4. ABARE, Australian Crop Report 18 February 2003
  • Attachment 5. Reserve Bank of Australia, Statement on Monetary Policy February 2003 Graph 30, p24
  • Attachment 6. National, Quarterly Agribusiness Survey December Quarter 2002
  • Attachment 7. Department of Agriculture, Fisheries and Forestry Australia, Exceptional Circumstances Frequently Asked Question January 2003
  • Attachment 8. Bureau of Rural Science EC and Prima Facie EC Areas as at 20 February 2003
  • Attachment 9. Bureau of Rural Science Extent of a One in Twenty Year Drought Event March 2002 – November 2002
  • Attachment 10. NSW Rural Assistance Authority and Department of Agriculture, Fisheries and Forestry Australia Application for Exceptional Circumstances Assistance
  • Attachment 11. Centrelink Newstart Payment Rates 1 January – 19 March 2003
  • Attachment 12. Centrelink New Commonwealth Package for Drought Affected Farmers – Overview
  • Attachment 13. Centrelink New Income Support Arrangements for Drought Affected Farmers
  • Attachment 14. Centrelink Stock Support and Drought Recovery Assistance – Interest Rate Relief
  • Attachment 15. Centrelink Claim for Additional Assistance for Drought Affected Farmers
  • Attachment 16. Centrelink Commonwealth Drought Relief for Small Business
  • Attachment 17. Centrelink Drought Assistance, Claim for Small Business Interest Rate Relief
  • Attachment 18. Media Release Hon Warren Truss MP, Minister for Agriculture, Fisheries and Forestry “More Farmers Getting Federal Drought Aid” 20 February 2003

     

NFF 2

3/4/03

D Harris

Reply Submission – 25 March 2003

  • Attachment 1. Hon Peter Costello MP, Federal Treasurer Press Release No. 10 5 March 2003
  • Attachment 2. Sections of ABARE, Australian Commodities Vol. 10 No.1 March Quarter 2003
  • Attachment 3. Bureau of Rural Science Map Rainfall required by the end of May 2003
  • Attachment 4. Commonwealth Bureau of Meterology Map Probability of exceeding median rainfall: March to May 2003
  • Attachment 5. Agriculture, Fisheries and Forestry Australia Summary Slide from Agricultural Finance Forum 12 March 2003
  • Attachment 6. Bureau of Rural Science Map Exeptional Circumstances (EC) Declared Boundaries as at 21 March 2003
  • Attachment 7. Media Release Hon Warren Truss MP, Minister for Agriculture, Fisheries and Forestry “Federal Drought Relief Spending Continues to Rise” 21 March 2003
  • Attachment 8. Media Release Senator the Hon Amanda Vanstone, Minister for Family and Community Services “Extra Help for Drought Affected Communities and Individuals” 19 November 2002
  • Attachment 9. Centrelink, www.centrelink.gov.au Help for Farm Hands

NFF 3

3/4/03

D Harris

Map – Australian Rainfall Deciles – 1 Month, March 2003, Commonwealth Bureau of Meteorology

NFF 4

3/4/03

D Harris

Map – Chance of exceeding the median rainfall – April to June 2003, Commonwealth Bureau of Meteorology

State and Territory Governments

STG 1

1/4/03

G Martin

Submissions – 5 February 2003

VACC (Motor Trades organisations)

VACC 1

3/4/03

W Chesterman

Submission – 7 March 2003

ebruary 2003

 

Australian Council of Trade Union (ACTU)

ACTU 1

31/3/03

A Watson

Submissions - 5 February 2003

ACTU 2

31/3/03

A Watson

Witness Statements - 5 February 2003

ACTU 3

31/3/03

A Watson

Composite Exhibit - 5 February 2003

ACTU 4

31/3/03

A Watson

Written Reply Submission - 17 March 2003

ACTU 5

31/3/03

A Watson

Reply Composite Exhibit - 17 March 2003

ACTU 6

31/3/03

A Watson

Supplementary submission - 28 March 2003

ACTU 7

31/3/03

A Watson

UK Report

ACTU 8

1/4/03

A Watson

Table of Hours Worked 1999-2002

ACTU 9

1/4/03

A Watson

Notes from ABS Labour Force 6202.0 February 2003

ACTU 10

4/4/03

A Watson

(ABS) Job Vacancies - Feb 2003

ACTU 11

4/4/03

A Watson

Australian Grains Industry article from abareconomics

ACTU 12

4/4/03

A Watson

Employee Earnings and Hours, 6306.0, May 2002

Australian Industry Group (AiG) and Engineering Employers’ Association, South Australia

AiG 1

2/4/03

M Moir

Submissions - February 2003

  • Annexure A: Ai Group Survey, “Business Prospects for Australian Manufacturing in 2003” (PDF Format)
  • Annexure D: "Economic Outlook", Glenn Stevens, Deputy Reserve Bank Governor (HTML Format)
  • Annexure G: Ai Group Australian PMI Survey, January 2003 (PDF Format)
  • Annexure H: "Statement on Monetary Policy", Reserve Bank of Australia, February 2003 (PDF Format)
  • Annexure I: Ministerial Consultation Paper, "Building a Simpler System to Help Jobless Families and Individuals", Commonwealth of Australia, 2002 (PDF Format)
  • Annexure J: Effective Marginal Tax Rates and Actual Benefit Ratios faced by Low Income Households (PDF Format)
  • Annexure K: Ai Group Wages Survey Questionnaire (PDF Format)
  • Annexure L: Ai Group Survey Report on the Impact of the May 2002 Safety Net Review Decision, February 2003 (PDF Format)
  • Annexure M: Data supplied by DEWR from Workplace Agreements Database (WAD) (Excel Format)

     

AiG 2

2/4/03

M Moir

Reply Submission - March 2003

  • Annexure A - "Economic Performance and Issues in 2003", Address to the Australian Industry Group Forum on 5 March 2003 by Malcolm Edey, Assistant Governor (Economic), Reserve Bank of Australia
  • Annexure B - Additional Labour Costs - Sensitivity Analysis

     

Commonwealth

Cmwlth 1

3/4/03

E R Cole

Submission - 26 February 2003

Cmwlth 2

3/4/03

E R Cole

Reply Submission - 25 March 2003

Cmwlth 3

3/4/03

E R Cole

Revised material

Cmwlth 4

3/4/03

E R Cole

Economic Data Released Since MYEFO Forecast comparison: Mid-Year Economic and Fiscal Outlook (MYEFO) and Consensus Forecasts (October 2002 and March 2003)

Cmwlth 5

4/4/03

E R Cole

House of Representatives, Official Hansard, No. 3, 2003, Wednesday, 5 March 2003

Cmwlth 6

4/4/03

E R Cole

Commonwealth Supplementary Material

Disability Employment Action Centre (DEAC) and National Council on Intellectual Disability (NCID)

DEAC 1

1/4/03

K Wilson

Submissions - 18 February 2003

DEAC 2

1/4/03

K Wilson

Witness Statements - 18 February 2003

DEAC 3

1/4/03

K Wilson

3 Folders of Exhibits - 18 February 2003

PIAA

PIAA 1

3/4/03

J Hargrave

Submission - 25 February 2003

National Farmers’ Federation (NFF)

NFF 1

3/4/03

D Harris

Submission - 26 February 2003

  • Attachment 1. Australian Rainfall Deciles 1 November 2002 – 31 January 2003-02-24 National Climate Centre
  • Attachment 2. Australian Rainfall Deciles January 2003 National Climate Centre
  • Attachment 3. Relevant Sections of ABARE, Australian Commidities: Forecasts and Issues December Quarter 2002
  • Attachment 4. ABARE, Australian Crop Report 18 February 2003
  • Attachment 5. Reserve Bank of Australia, Statement on Monetary Policy February 2003 Graph 30, p24
  • Attachment 6. National, Quarterly Agribusiness Survey December Quarter 2002
  • Attachment 7. Department of Agriculture, Fisheries and Forestry Australia, Exceptional Circumstances Frequently Asked Question January 2003
  • Attachment 8. Bureau of Rural Science EC and Prima Facie EC Areas as at 20 February 2003
  • Attachment 9. Bureau of Rural Science Extent of a One in Twenty Year Drought Event March 2002 – November 2002
  • Attachment 10. NSW Rural Assistance Authority and Department of Agriculture, Fisheries and Forestry Australia Application for Exceptional Circumstances Assistance
  • Attachment 11. Centrelink Newstart Payment Rates 1 January – 19 March 2003
  • Attachment 12. Centrelink New Commonwealth Package for Drought Affected Farmers – Overview
  • Attachment 13. Centrelink New Income Support Arrangements for Drought Affected Farmers
  • Attachment 14. Centrelink Stock Support and Drought Recovery Assistance – Interest Rate Relief
  • Attachment 15. Centrelink Claim for Additional Assistance for Drought Affected Farmers
  • Attachment 16. Centrelink Commonwealth Drought Relief for Small Business
  • Attachment 17. Centrelink Drought Assistance, Claim for Small Business Interest Rate Relief
  • Attachment 18. Media Release Hon Warren Truss MP, Minister for Agriculture, Fisheries and Forestry “More Farmers Getting Federal Drought Aid” 20 February 2003

     

NFF 2

3/4/03

D Harris

Reply Submission - 25 March 2003

  • Attachment 1. Hon Peter Costello MP, Federal Treasurer Press Release No. 10 5 March 2003
  • Attachment 2. Sections of ABARE, Australian Commodities Vol. 10 No.1 March Quarter 2003
  • Attachment 3. Bureau of Rural Science Map Rainfall required by the end of May 2003
  • Attachment 4. Commonwealth Bureau of Meterology Map Probability of exceeding median rainfall: March to May 2003
  • Attachment 5. Agriculture, Fisheries and Forestry Australia Summary Slide from Agricultural Finance Forum 12 March 2003
  • Attachment 6. Bureau of Rural Science Map Exeptional Circumstances (EC) Declared Boundaries as at 21 March 2003
  • Attachment 7. Media Release Hon Warren Truss MP, Minister for Agriculture, Fisheries and Forestry “Federal Drought Relief Spending Continues to Rise” 21 March 2003
  • Attachment 8. Media Release Senator the Hon Amanda Vanstone, Minister for Family and Community Services “Extra Help for Drought Affected Communities and Individuals” 19 November 2002
  • Attachment 9. Centrelink, www.centrelink.gov.au Help for Farm Hands

NFF 3

3/4/03

D Harris

Map - Australian Rainfall Deciles - 1 Month, March 2003, Commonwealth Bureau of Meteorology

NFF 4

3/4/03

D Harris

Map - Chance of exceeding the median rainfall - April to June 2003, Commonwealth Bureau of Meteorology

State and Territory Governments

STG 1

1/4/03

G Martin

Submissions - 5 February 2003

VACC (Motor Trades organisations)

VACC 1

3/4/03

W Chesterman

Submission - 7 March 2003

Updated time

Last updated

01 March 2016

 

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