October 5, 2012.CONTEMPORARY REWARD MANAGEMENTExecutive SummaryAustralian Council of Trade Union (ACTU) and Australian Chamber of Commerce Industry are bodies that oversee implementation of interests of Australian workers represent Australian enterprise and industry at national and international level respectively. Thus, they play key roles in contemporary reward management and ensuring Fair Work Australia. In attempts to meet their goals, these two bodies play key roles in minimum wage determination for the Australian workers. Australian Council of Trade Union (ACTU) is the main body that oversees the implementation of the interests of the 2 million workers in Australia.
It consists of 46 affiliated unions which are also targeted at meeting the interests of workers across Australia. The main aim of ACTU is to improve the living standards as well as to raise the quality of working life of the Australian people. Therefore as a body aimed at improving living standards, ACTU has managed quite a number of industrial gains including, years of wage increase for the working Australians through the award system, improved working environment which is safe and non hazardous for workers, equity and equality of women together with better employment conditions (Shield, 2007, p. 23).
On the other hand, the Australian Chamber of Commerce and Industry (ACCI) is the leading council of business organization in Australia and it also represents the channel through which Australian Enterprise and Industry air their voices. Indeed, as the peak council for business organization, ACCI represents Australian enterprise and industry at national and international level. Therefore, owing to the work and importance of ACCI it plays a major role in bringing together industry, government, regulators and very important and influential policy forums which in one way or the other affect doing business at national and international level (Storey, 2009, p. 30). The role of ACTU and ACCI in the minimum wage determination is crucial and can’t be ignored.
And as part of the parties proposals ACTU and ACCI submitted their modern award minimum wage and national minimum wage. These were submitted by these two bodies to fulfill their mandate as outlined by the fair work act 2009 through which the minimum wage panel was established. Submissions that were proposed by the ACTU and ACCI recommended an increase to the national minimum wage as well as the modern awards.
ACTU recommended an increase to the minimum wage by a tired approach which established $26 dollar increase to the national minimum wage. ACTU also took a position of increasing modern award wages to C10 levels or higher. In percentage terms, ACTU has proposed a 3.8 percent increase at the C10 levels which it has suggested to be applied to all the individuals within the modern award wages. Thus, when ACTU refers to the C10 levels, it implies wage increase to all the engineers and manufacturing trade persons who are in the first level of the manufacturing award.
On the contrary, ACCI recommended a flat dollar increase considered on award to ward basis. ACCI therefore proposed an increase of $9.40 week (White & Druker, 2009, p. 106). The two parties, ACTU and ACCI developed their proposals in line with the Fair Work Australia minimum wages objectives. Thus while developing the proposal, the Fair Work Australia took into consideration some key factors like the performance and competitiveness which needs to be met to check on the national economy.
Also, while developing proposals, the ACTU and ACCI had to meet the expectations of the Fair Work Australia like business competitiveness and visibility, productivity and inflation and employment growth. This is so because when the above factors are observed the Fair Work Australia is going to meet one of its key objectives like increasing/ raising awareness on social inclusion through increased involvement of the workforce. Hence, when this is met, the Fair Work Australia will be in position of addressing the needs of the low paid.
Indeed it is on this basis that the ACTU and ACCI decided to increase minimal wage so as to ensure increase in the living standards, an aspect that is included by the Fair Work Australia as part of its objective (Shields, 2007. p. 25). Furthermore, to address the minimum wage requirement and enhance work fair Australia, there was need to ensure the remuneration increase cut across board so that the people in low pay group benefits as well. This is in line with the Work Fair Australia fourth objective where they expect that there should be equal remuneration which should measure to the work or value of the work done.
Hence, the two parties decided to award increase at a flat rate for all workforces. Indeed providing equal remuneration for work of comparable value as was factored in by the ACTU and ACCI was a necessity because through this they were able to fulfill the need of junior employees and those with the disability (Corby et al, 2009. p. 97).