Minimum Wage Increase 2010 announced today - $26 per week
Background
HMAA represented Accommodation operators throught Australia in seeking a realistic wage increase of 3% or less in what is Fair Work Australia's (FWA) first annual minimum wage review.
The national minimum wage is currently $14.31 per hour. This rate was set by the Australian Fair Pay Commission (AFPC) during its annual review in July 2008. In the 2009 wage review, the AFPC resisted pressure to further increase the minimum wage and Australian Pay Scales in order to protect jobs and support a stronger recovery in employment during 2009.
HMAA argued that an increase of over 3% would impact severely on an industry, which like so many others, has been affected in 2009/10 by the GFC; the award modernisation process; and unseasonal weather patterns affecting tourism numbers
What is the increase?
$26.00 per week. Based on a 38 hour week, the hourly increase is 0.69 cents per hour. This brings the National minimum wage up to $15.00 per hour.
When will it apply?
First full pay period on or after 1 July 2010
Who will it apply to?
The increase applies to all Constitutional Corporations (e.g. Pty Ltd and Ltd companies) applying the Hospitality Industry (General) Award 2010. It also applies to non constitutional corporations (e.g. sole traders and partnerships) applying the Hospitality Industry (General) Award 2010.
Note: the only way a non constitutional corporation would be applying the Hospitality Industry (General) Award 2010 is if you were applying a Federal Transitional Award as at the 31st of December 2009.
The increase DOES NOT apply to all other non constitutional corporations (e.g. sole traders and partnerships) using a State Award (now referred to as a Division 2B State Award).
In its decision FWA stated "We have decided not to vary minimum wages, casual loadings or piece rates in Division 2B State awards as part of this review......It is relevant that employees covered by Division 2B State awards have generally had the benefit of an increase in minimum wages in calendar year 2009."
What happens to the Hospitality Industry (General) Award 2010 (HIA)?
The minimum wages reflected in HIA will increase by the above amount. HMAA will have the new wage schedule available in the Workplace Relations Section of the HMAA website late on Monday the 7th of June.
Transitional Arrangements
As you are aware HIA came into operation on 1 January 2010. The following conditions however were not effective immediately, and are subject to a 5 year phasing-in period from 1 July 2010:
- minimum wages including piecework rates and applicable industry allowances;
- casual and part-time loadings;
- Saturday, Sunday and public holiday pebalty rates;
- evening and other penalty rates; and
- shift allowances.
HMAA has prepared new wage schedules to account for the transition to the new federal award (HIA) for the majority of NAPSA's and Federal Awards that are currently being used by members.
What do I do now?
We are at currently adjusting the transitional wage schedules to account for the minimum wage increase. HMAA will make available the updated wage schedules on the Workplace Relations Section of the HMAA website late on Monday the 7th of June. This will allow members over 3 weeks to prepare payrol for the new wages, allowances, and penalty rates that will take effect from 1 July 2010.
HMAA Webinars
HMAA has been presenting online webinars on the following topics over the past week. Make sure you REGISTER for the next round of webinars to get the most up-to-date information on new wages, allowances, transitional provsions and the like.
National Employment Standards
Hospitality Industry (General) Award 2010 - part 1 and 2
Unfair Dismissal and the Fair Work Act 2009.
Please contact a Workplace Relations Advisor on 1300 304 397 or at workplacerelations@hmaa.com.au if you have any questions.
