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Thursday, 1 December 2022
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Senator BARBARA POCOCK (South Australia) (17:04): by leave—I move Greens amendments (1) to (3) on sheet 1758 together:

(1) Clause 2, page 5 (after table item 32A), insert:

32B. Schedule 1, Part 25B	The day after this Act receives Royal Assent.

(2) Schedule 1, page 250 (after line 5), after Part 25A, insert:

Part 25B — Minimum wage

Fair Work Act 2009

659C Section 12

Insert:

median national hourly wage means the median weekly total cash earnings for all full-time employees paid at the adult rate of pay, most recently published by the Australian Statistician, divided by 38.

659D After subsection 294(1)

Insert:

(1A) The monetary amount per hour produced by the national minimum wage must at least equal 60% of the median national hourly wage.

Note: The national minimum wage must be expressed in a way that produces a monetary amount per hour (see section 295).

(3) Schedule 1, Part 26, page 263 (after line 15), after Division 19, insert:

Division 20 — Amendments made by Part 25B of Schedule 1 to the amending Act

85 Definitions

In this Division:

phase in period: see paragraph 87(1)(a).

86 Application of amendments — national minimum wage orders

Orders that come into operation after phase in period

(1) Subsection 294(1A) (as inserted by the amending Act) applies in relation to a national minimum wage order that comes into operation after the end of the phase in period.

Orders made and that come into operation during phase in period

(2) If a national minimum wage order is made, and comes into operation, during the phase in period, the national minimum wage set by the order must reflect the phase in referred to in subclause 87(1).

(3) Subclause (2) does not apply to the national minimum wage set by a national minimum wage order, if:

(a) FWC is satisfied that there are exceptional circumstances justifying the departure from the phase in, in relation to that particular national minimum wage order; and

(b) the national minimum wage order includes the FWC's reasons for the departure.

87 FWC must phase in increases in national minimum wage

FWC must determine rate of phase in

(1) In the first national minimum wage order that comes into operation after the commencement of the amending Act, the FWC must set out:

(a) the period (the phase in period) during which the effect of any increases in the national minimum wage that will be required because of subsection 294(1A) (as inserted by the amending Act) are to be phased in; and

(b) the rate of the phase in during that period.

(2) The phase in period must end no later than 6 years after the commencement of the amending Act.

(3) In determining the rate of the phase in, FWC must have regard to the following matters:

(a) the need to reduce inequality;

(b) the state of the economy;

(c) the circumstances of particular industries and classes of employers;

(d) any other matters the FWC considers relevant.

Special rules if a national minimum wage order is made shortly before commencement

(4) If the first national minimum wage order that is to come into operation after the commencement of the amending Act is made before that commencement, the FWC must, after that commencement and before the national minimum wage order comes into operation, make a determination varying the order so that the order complies with subclauses (1) to (3).

(5) To avoid doubt, subclause (4) applies despite paragraph 296(3)(a).

Note: Paragraph 296(3)(a) restricts the grounds on which a national minimum wage order can be varied.

(6) A determination made in accordance with subclause (4):

(a) comes into operation immediately after the order as unvaried comes into operation; and

(b) takes effect at the same time as the order.

(7) The following provisions apply to a determination made in accordance with subclause (4) as if the determination was made under Part 2-6:

(a) subsection 296(2) (publication requirements);

(b) subsection 617(3) (determination must be made by Expert Panel).

88 Application o f amendments — other Commonwealth laws

(1) This clause applies in relation to a payment if:

(a) the payment is of a kind that is payable by the Commonwealth under a law of the Commonwealth (other than this Act); and

(b) the law requires the payment to be calculated (however described) by reference to the national minimum wage set by a national minimum wage order.

Note: A kind of payment to which subclause (1) applies may be a kind of payment that is also payable by persons other than the Commonwealth (for example, parental leave pay under the Paid Parental Leave Act 2010).

(2) A national minimum wage set by a national minimum wage order that comes into operation after the commencement of the amending Act does not apply for the purposes of the calculation of the payment.

(3) Subclause (2) does not apply if the payment is prescribed by the regulations.

These amendments would enshrine in law a new minimum wage—a living wage. The rising cost of housing, energy, food and everyday essentials, combined with low wage growth, means that many working people are living in poverty. In a rich country like Australia, people earning the minimum wage shouldn't be struggling to make ends meet.

These amendments lift the national minimum wage to a living wage, which we define, like many other countries, as 60 per cent of the median full-time weekly wage, as determined by the Australian Bureau of Statistics. The amendments will allow the Fair Work Commission to determine the phase-in period and the amounts for this increase, which should be no longer than six years. The Fair Work Commission must have regard in these amendments to matters including: reducing inequality; the state of the economy; and the circumstances of particular industries and classes of employers.

The Greens recognise the government's intention to lift wages through this bill, and that's to be applauded and it's long overdue, but we believe we need to lift the floor of the minimum wage so workers aren't in poverty and inequality narrows.