The paper “ The Australian Council of Trade Unions and the Australian Chamber of Commerce and Industry's Approach to Minimum Wage Determination” is a worthy variant of assignment on finance & accounting. The success of any organization depends on the performance of its employees, which is directly proportionate to their motivation and satisfaction level. Please note that compensation or wages play a very important role in this regard. Therefore, it is almost mandatory for an organization to have their salary structure and wage mechanism designed in a way that is beneficial for both parties.
To be more specific, though companies these days come up with fancy CTC’ s, the break-up actually determines if the compensation is really meaningful for the employee. Whether an employee is fairly compensated is determined by the minimum wage structure of a company. The economy can progress only if companies look forward to revising their minimum wage policies from time to time, with the constantly changing times. This will also ensure dedicated employees, who are instrumental in any organization’ s growth. The paper thereby looks into the submissions of the Australian Council of Trade Unions (ACTU) and the Australian Chamber of Commerce and Industry (ACCI) and reveals their approach to minimum wage determination.
The paper also looks to present the extent to which these views were reflected in the Minimum Wage Review decision of Fair Work Australia. What do the submissions of the Australian Council of Trade Unions (ACTU) and Australian Chamber of Commerce and Industry (ACCI) reveal about their approach to minimum wage determination? The organization which upholds the responsibility of ensuring whether employees are getting fairly compensated is the Australian Council of Trade Unions (ACTU) & Australian Chamber of Commerce & Industry (ACCI).
The Minimum Wage Panel (the Panel) established under the Fair Work Act 2009 (FWA) is required to conduct and complete an annual wage review in each financial year. This panel through the Act sets out some important procedural fairness requirements for the review. It includes the provision of a reasonable opportunity for all persons and bodies to make written submissions, a publication of the written submissions and a reasonable opportunity for submissions to be made in reply. Interested organizations and bodies like ACCI and ACTU, referred to collectively as parties, participated in this review by written submission and some of them participated in public consultations. However, there is a fundamental difference between the lines of thought which is being adopted by these two organizations while submitting their recommendations to the panel. The ACTU examines the wage rate by comparing the changes in the recent trends in the living standards, which has come about and the various dimensions related to it; with the revisions made into the wage-structure.
“ The ACTU is entrusted with the responsibility of ensuring the Fair Work Australia Minimum Wage Panel and the National Minimum Wages that needs to be paid to the employees so that they are satisfied. ” (ACTU, 2011)Fundamentally, it’ s quite evident that ACTU is in favor of a safety net through a strong framework for minimum wages.
The ACTU supports the institutional intervention of FWA in ensuring a strong system of minimum wages. After examining the minimum wage rate, the Australian Council of Trade Unions (ACTU) suggested a layered or structured approach. It recommended a weekly increase of $26.00 to the national minimum wages as the flat dollar increase policy.
This is also applicable to the modern award wages and includes the C10 level. Now, this means that the raise is equivalent to 3.8 percent raise at the C10 level, which according to the ACTU recommendation, is also applicable to all modern wages higher than the C10 level (ACTU, 2012).