Essays on Australian Council of Trade Unions and Minimum Wage Case Study

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The paper 'Australian Council of Trade Unions and Minimum Wage " is a good example of a management case study. The submission of the Australian Council of Trade Unions has revealed a number of issues regarding its approach to contemporary reward management. One of the issues revealed in its introductory pages (pp. 1-24) is the commitment to be relevant and authoritative in ensuring that the Minimum Wage Panel discharges its statutory obligations (Perkins & Shortland, 2006). The Panel, for example, is obligated to establish and maintain the wages safety net for employees by ensuring that the wages are constantly reviewed (ACTU, 2010). One of the most significant principles of contemporary reward management is that it focuses on relevance and on the importance of reviews on minimum wages being relevant to the prevailing conditions of the community (Wright, 2004).

This has been provided in the submission whereby the ACTU provides that modern awards should be maintained at a level that will make them a relevant safety net for employees and a relevant benchmark to add force to enterprise bargaining. This is apparent when it appeals to the Fair Work Australia Minimum Wage Panel to increase minimum wages in modern awards as well as minimum wage orders by $27.00 a week.

The rest of the submission has been dedicated to showing how the increase is justified and reasonable, starting with illustrations of how the economy in the nation has steadily recovered from the economic downturn (ACTU, 2010). The appeal of the ACTU to the Minimum Wage Panel of Fair Work Australia to end the 2-year wage freeze that minimum wage reliant workers in Australia have experienced since 2008 is an important function that reveals its commitment for the good of the employee.

The ACTU has also provided various recommendations to the Fair Work Act with regard to providing fair and a valuable safety net of minimum wages and conditions; the fair Work Act should time and again adjust the safety net so as to be relevant to the community changes and expectations. This, according to the ACTU, can be achieved through the annual minimum wages adjustment as well as the four-year term reviews of the award adjustment (ACTU, 2010). Further, the ACTU has provided candid figures with regard to conditions of Australian employees, such as for example, the fact that 16.5 percent of employees are awarded only employees.

This means that they cannot bargain with their employer, hence relying on the wage adjustments decisions made by the Fair Work Australian Minimum Wage Panel to meet their needs. This does not only reveal the obligation of the ACTU in meeting the plight of employees, a recognition role of trade unions (Blyton & Jenkins, 2009), but also emphasizes the importance of the decisions made by the Fair Work Australia Minimum Wage panel in meeting the needs of employees (ACTU, 2010). Importantly, the ACTU has gone into depths of explaining the conditions and challenges that face minimum wage workers in the review, which is very critical in contemporary reward management (Heneman, 2002).

For example, very many workers face numerous challenges because they remain low paid for substantial lengths of time, ultimately facing cost pressures. Worth noting is that a modest increase in award minimum wages will have an insignificant inflationary impact.

By extensively demonstrating how increases in minimum wages amounting to $ 27.00 per week are justified and reasonable, the ACTU has revealed the essence of its role as a stakeholders’ entity whose objectives are in line with principles of contemporary reward management (ACTU, 2010).


Australian Council of Trade Unions (pp. 1-24, pp. 185-188) Annual Wage Review 2009–10 Retrieved October 21, 2010:

Australian Chamber of Commerce and Industry (pp. 1-26). Annual Wage Review 2009–10 Retrieved October 21:

Armstrong, M, Murlis, H. & Hay Group (2007) Reward management: a handbook of remuneration strategy and practice, London: Kogan Page Publishers.

Blyton, P. & Jenkins, R. (2007) Key Concepts in Work. London: SAGE.

Fair Work Australia (FWA) Decision Fair Work Act 2009 decision of the Minimum Wage Panel Retrieved October 21:

Heneman, R. L. (2002) Strategic reward management: design, implementation, and evaluation. New York: IAP.

Perkins, S. J. & Shortland, S. M. (2006) Strategic international human resource management: choices and consequences in multinational people management. London: Kogan Page Publishers.

White, G & Druker, J. (2000) Reward management: a critical text. Routledge studies in employment relations. London: Routledge.

Wright, A. (2004) Reward management in context. London: CIPD Publishing.

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