Hostname: page-component-848d4c4894-jbqgn Total loading time: 0 Render date: 2024-07-02T12:39:23.607Z Has data issue: false hasContentIssue false

‘Stolen Entitlements’: The 1997 Living Wage Case

Published online by Cambridge University Press:  01 January 2023

Braham Dabscheck*
Affiliation:
School of Industrial Relations and Organisational Behaviour, University of New South Wales

Abstract

In April 1997 the Australian Industrial Relations Commission established a federal minimum award wage of $359.40 per week, and awarded a $10 per week safety net increase for workers who had been unable to obtain wage increases under the regime of enterprise bargaining. The Commission produced a split decision, the first time this has occurred in twenty years. This article provides a commentary on the respective decisions of the majority and minority. It examines the background or context of the case, the claims of the parties, and the reasoning of the majority and minority in their respective decisions. The case reveals a widening gap in the income of workers. Those without bargaining power are falling behind in both real and relative terms, in the regulatory world of enterprise bargaining. The situation has only been partially addressed by the decision in this case.

Type
Research Article
Copyright
Copyright © The Author(s) 1997

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Accord Agreement 1993–1996 (1993) ‘Putting Jobs First’ (Accord Mark VII), February (mimeo)Google Scholar
Accord VIII 1995–1999 (1995) ‘Sustaining Growth, Low Inflation and Fairness’, Agreement between the Federal Labor Government and the ACTU, 22 June (mimeo)Google Scholar
Australian Conciliation, and Arbitration Commission (ACAC) (1974) National Wage Case 1974, 157 Commonwealth Arbitration Reports, CAR 293Google Scholar
ACAC (1977) National Wage Case 1977, 188 CAR 591Google Scholar
Australian Industrial Relations Commission (AIRC) (1991a) National Wage Case, 16 April 1991, Dec 300/91 M Print J7400, MelbourneGoogle Scholar
AIRC (1991b) National Wage Case, 30 October 1991, Dec 1150/90 M Print K0300, MelbourneGoogle Scholar
AIRC (1993) Review of Wage Fixing Principles, 25 October 1993, Dec 1300/93 M Print K9700, MelbourneGoogle Scholar
AIRC (1994) Safety Net Adjustments and Review, 21 September 1994, Dec 1634/94 M Print L5300, MelbourneGoogle Scholar
AIRC (1995) Third Safety Net Adjustment and Section 150A Review, 9 October 1993, Dec 2120/95 M Print M5600, MelbourneGoogle Scholar
AIRC (1997) Safety Net Review-Wages, 22 April 1997, Dec 335/97 S Print P1997, SydneyGoogle Scholar
Buchanan, J., Watson, I. (1997) A Profile of Low Wage Employees, Australian Centre for Industrial Relations Research and Teaching, University of Sydney, Working Paper 47, AprilGoogle Scholar
Card, D., Krueger, A.B. (1994) ‘Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania’, The American Economic Review, SeptemberGoogle Scholar
Card, D., Krueger, A.B. (1995) Myth and Measurement: The New Economics of the Minimum Wage, Princeton University Press, Princeton Google Scholar
Commonwealth Conciliation and Arbitration Commission (1970) National Wage Case 1970, 135 CAR 244Google Scholar
Commonwealth Court of Conciliation and Arbitration (1907) Haverster Case 1907 2 CAR 1Google Scholar
Dabscheck, B (1995) The Struggle for Australian Industrial Relations, Oxford University Press, Melbourne Google Scholar
Freeman, R.B. (1996) ‘The Minimum Wage as a Redistrubitive Tool’, The Economic Journal, MayGoogle Scholar
Gregory, B (1996) ‘Wage Deregulation, Low Paid Workers and Full Employment’, in Sheehan, P., Grewal, B., Kumnick, M. (eds), Dialogues on Australia’s Future. In Honour of the late Professor Ronald Henderson, Centre for Strategic Economic Studies, Victoria University, Melbourne Google Scholar
Gregory, R.G. (1993) ‘Aspects of Australian and US Living Standards: The Disappointing Decades’, The Economic Record, MarchCrossRefGoogle Scholar
MacDermott, T (1997) ‘Industrial Legislation in 1996: The Reform Agenda’, The Journal of Industrial Relations, MarchCrossRefGoogle Scholar
Nevile, J.W. (1996) ‘Minimum Wages, Equity and Unemployment’, The Economic and Labour Relations Review, DecemberGoogle Scholar
Reith, P, ‘Better Pay for Better Work’, The Federal Coalition’s Industrial Relations Policy (mimeo)Google Scholar
Webb, S., Webb, B. (1911) Industrial Democracy (Second edition), Longmans Green and Co, London Google Scholar