The Fair Work Commission has announced the national minimum wage is set to increase by 3.5 per cent, meaning Australia’s lowest paid truck drivers and transport workers are set to receive an important pay rise.
The Fair Work Commission’s latest review of minimum wages in modern awards for the financial year has seen an increase applied from the first full pay period starting on or after July 1 this year.
The Queensland Transport Association (QTA) shared the news, which sees all modern award classification scales increase by 3.5 per cent (rounded to the nearest 10 cents).
This means the federal minimum wage for award free employees will become $24.95 per hour, equalling $948 per week. This is an increase of $32.10 per week to the weekly rate, or 84 cents per hour to the hourly rate.
The increases apply for most modern awards – in the transport sector, this applies to the Road Transport and Distribution Award 2020, the Road Transport (Long Distance Operations) Award 2020 and Clerks – Private Sector Award 2020.
The changes also impact the Vehicle Repair, Services and Retail Award 2020, the Waste Management Award 2020, the Manufacturing & Associated Industries and Occupations Award 2020 and the Storage Services and Wholesale Award 2020.
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The QTA says members who have workplace agreements in place will need to ensure the agreement rates meet or exceed the new minimum award rates.
“If the agreement pay increases are linked to the panel’s decision, the pay rates will need to be adjusted within the Workplace Agreement accordingly,” the QTA says.
“The increases can be absorbed into any amounts now being paid over and above the relevant minimum rates. However, be aware the Fair Work Ombudsman makes it clear that over award pay-rates can NOT off-set other award entitlements (e.g. penalties or loadings) unless there is a formal agreement in place. Rates for juniors, trainees and apprentices will also be adjusted, as usual, on a proportionate basis.”
The QTA says it can provide help to any operator who wants to formalise employment conditions in their workplace in an agreement certified by the Fair Work Commission.
“Members will receive amendments to their relevant Modern Award(s) specifying the new Pay Rates adjusted by the 3.5 per cent increase, once the awards are formally amended by the Fair Work Commission,” the QTA says.
“We hope this will be within a short timeframe and prior to the end of June.”
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