[2017] FWCFB 3349
FAIR WORK COMMISSION

STATEMENT


Fair Work Act 2009

s.156 - 4 yearly review of modern awards

4 yearly review of modern awards—National Training Wage
(AM2016/17, AM2016/15)

JUSTICE ROSS, PRESIDENT
VICE PRESIDENT HATCHER
COMMISSIONER HUNT

MELBOURNE, 21 JUNE 2017

National Training Wage Schedule – plain language re-draft – Miscellaneous Award 2010 – next steps.

[1] In a decision 1 issued on 9 June 2017 we decided to insert a reference term into the modern awards specified in Attachment A of that decision. Draft Determinations giving effect to that decision were published on the Commission’s website on 13 June 2017 and interested parties were invited to comment. The Draft Determinations remove the National Training Wage Schedule (NTW Schedule) from the specified awards and incorporate the NTW Schedule by reference to the Miscellaneous Award 2010. Final determinations will issue shortly and come into operation from 1 July 2017.

[2] This Statement outlines the next steps in dealing with the plain language drafting of the NTW Schedule in the Miscellaneous Award 2010.

[3] In a Statement 2 issued on 23 February 2017 we announced that the NTW Schedule of the Miscellaneous Award 2010 would be re-drafted in plain language and a plain language draft of the NTW Schedule was published the same day. Interested parties were invited to make submissions on the draft.

[4] Submissions were received from the Australian Industry Group (Ai Group), the Australian Manufacturing Workers Union (AMWU), the Construction, Forestry, Mining and Energy Union – Construction and General Division (CFMEU), the Motor Trade Association of South Australia (MTA) and Master Builders Australia (MBA).

[5] A draft summary of submissions was published on the Commission’s website on 20 April 2017. Interested parties were invited to review the draft summary of submissions to ensure their submissions were accurately characterised. No comments or submissions were received.

[6] The draft summary of submissions has been sorted into outstanding and agreed issues. The revised summary of submissions is set out at Attachment A to this Statement. Outstanding issues appear at items 1 to 9. Agreed issues appear at items 10 to 24.

[7] A marked up version of the Miscellaneous Award 2010 NTW Schedule is included at Attachment B. The marked changes reflect the agreed position of the parties and amendments of drafting errors.

[8] A conference will be held on Friday 21 July 2017 at 9.00 am in Sydney with the view to resolving the outstanding issues with the NTW Schedule in the Miscellaneous Award 2010.

[9] Award-specific NTW Schedules in awards subject to applications to retain NTW Schedules will be addressed after the NTW Schedule in the Miscellaneous Award 2010 has been finalised. 3

PRESIDENT

Printed by authority of the Commonwealth Government Printer

<Price code G, PR593980>

Attachment A—revised summary of submissions—plain language draft of NTW Schedule for Miscellaneous Award 2010

This table is a summary of submissions lodged on or before 5.00pm on 22 June 2017.

ITEM

PARTY

DOCUMENT

CLAUSE (PLRDS)

SUMMARY OF ISSUE

THEIR REFERENCE

NOTES

Plain language re-draft of the NTW schedule—opposed and outstanding issues

1

Ai Group

Sub-24/03/17

A.1.1

Definitions
In definition of approved training words ‘in relation to trainee’ should be deleted. Unnecessary and confusing.

Paras 7–10

Drafter comment: These words give context to the later reference to “the trainee”. It ensures the easy use later of references to the approved training of an employee.

2

Ai Group

Sub-24/03/17

A.1.2(c)

Definitions
Clause should be amended as follows: not include any period during a calendar year after the completion during that year of in which a year of schooling is completed.

The period of time during which the employee was in fact completing such schooling is no longer excluded. The legal effect of this clause is substantially different to the current NTWS. Would have significant effect on wage entitlements.

Paras 11–15

Drafter’s comment: The redrafted clause clearly excludes any period during a year after you have finished your year’s schooling.

AMWU

Reply sub-07/04/17

The revised schedule would not have the effect the AIG claim as a period of schooling could not also be a period out of school.

Para 3–4

3

Ai Group

Sub-24/03/17

A.2.1

Coverage
Clause should be amended to read: ‘…this schedule applies to in respect of an employee…’
NTW schedule creates entitlements for employees and obligations on employers in relation to those employees. Not appropriate that the application of the schedule be limited only to employees.

Paras 16–20

Drafter comment: prefers proposed wording of plain language draft.

4

MBA

Sub-17/03/17

A.4.1(a) – (d)
A.4.2(a) – (c)

Minimum wages for full-time traineeships
Minimum wages for part-time traineeships
The following words at the end of these clauses, and after the word/s ‘column’ should be deleted as they have no relevance to the operation of the time-based progression provisions contained within the Miscellaneous Award NTW schedule ED and the Plain Language re-draft NTW schedule - ‘and the experience level of the trainee specified in column 1.’

3.4

Outstanding/opposed

CFMEU

Reply submission – 06/04/17

Opposes deletion as words clearly relate to the title of Column 1 and have nothing to do with competency based progression.

Para 13

AMWU

Reply sub-07/04/17

Opposes deletion on the basis that the reference to ‘the experience level of the trainee’ is not a reference to the competency of the trainee but to the ascribed experience accruing over time, post leaving school.

Para 17

5

Ai Group

Sub-24/03/17

A.5.1

Employment conditions
The word ‘being’ should be deleted as follows:
“A trainee undertaking a school-based traineeship may agree to be paid an additional loading of 25% on all ordinary hours worked instead of being paid annual leave…”
Is unnecessary and apt to confuse. May lead to the trainee becoming entitled to ‘annual leave’ without pay.

Paras 43–46

Outstanding/opposed

Drafter prefers wording of plain language draft.

AMWU

Reply sub-07/04/17

Word should remain. If trainees are not specifically excluded from an award provision, without pay, then they are entitled to access the entitlement.

Para 10–11

6

Ai Group

Sub-24/03/17

A.5.2

Employment conditions
Clause should be amended to read: A trainee is entitled to be released from work without loss of pay and without loss of continuity of employment and to payment of the appropriate wages to attend any training and assessment specified in, or associated with, the training contract.

These words may be interpreted to require the payment of any amount that would have been payable to the employee had they instead been working.

Paras 47–51

Outstanding/opposed

AMWU

Reply sub-07/04/17

Does not oppose the draft as whether travel allowances or other entitlements accrue under the terms ‘without loss of pay’ or ‘appropriate wage’, depends on the context of the modern award.

Paras 12–15

7

MTA

Sub-24/03/17

A.5.3

Amend clause to read ‘Time spent by a full-time trainee in attending any training and assessment specified in, or associated with, the training contract is to be regarded as time worked for the employer and in determining a full-time trainee’s employment conditions. The weekly wages in A.4.1(a) to (d) includes payment for time worked and time spent in training.’

Para 2.2.3

Outstanding/opposed

AMWU

Reply sub-07/04/17

Oppose MTA submission. The existing clause only excludes ‘a trainee undertaking a school-based traineeship’ not all part-time trainees. Proposal would significantly extend scope of exclusion.

Para 19

Ai Group

Reply sub – 11/04/17

Opposes MTA’s proposed re-wording of this provision (was subject of a decision of the Federal Court – does not support a change to the wording which could lead to a further round of costly litigation.

Para 10–12

8

MTA

Sub-24/03/17

A.5.3 – note

Also proposes that the ‘note’ after clause be replaced by new clause A.5.4 as follows: ‘The time to be included for the purpose of calculating the wages for part-time trainees (including a school-based trainee) is determined by A.4.2(f)(ii) and (iii) and not A.5.3.

Renumber A.5.4 as A.5.5 accordingly.

Para 2.2.4

Para 2.2.5

Outstanding/opposed

Ai Group

Reply sub – 11/04/17

 

Opposes MTA’s proposed re-wording of this provision (was subject of a decision of the Federal Court – does not support a change to the wording which could lead to a further round of costly litigation.

Para 10–12

9

Ai Group

Sub-24/03/17

A.5.4

Employment conditions
Clause should read as follows: ‘Subject to clause A.2.4, all other terms and conditions of this award apply to a trainee unless specifically varied by this schedule.’

Otherwise may have the effect of narrowing the scope of an employer’s prerogative as to how a specific provision is applied to its employees.

Para 59

Drafter comment: it is unnecessary to refer to ‘terms and conditions’. The word ‘expressly’ covers the need for an express variation.

ITEM

PARTY

DOCUMENT

CLAUSE (PLRDS)

SUMMARY OF ISSUE

THEIR REFERENCE

NOTES

Plain language re-draft of the NTW schedule—agreed and not opposed issues

10

AMWU

Sub-24/03/17

A.1.1

Definitions
Terms need to be updated. In the traineeship definition, ‘Industry Skills Council’ and ‘National Quality Council’ should be replaced with ‘Skills Service Organisation’ and ‘Australian Industry and Skills Committee’.

Para 3

Agreed

CFMEU

Reply submission – 06/04/17

The changes in definitions proposed by the AMWU are generally supported.

Para 18

Ai Group

Reply sub – 11/04/17

Does not oppose the updating of terminology as proposed by AMWU

Para 4

11

AMWU

Sub-24/03/17

A.1.1

Definitions
The definition ‘relevant Ministers’ has been deleted to reflect current arrangements.

Para 4

Definition has been re-inserted.

12

Ai Group

Sub-24/03/17

A.3(b)

Types of traineeship
The following words should be reinserted ‘solely on-the-job or partly on-the-job and partly off-the-job, or where training is fully off-the-job.’
The current clause aids in understanding the basis upon which a part-time traineeship may be undertaken.

Paras 24–25

Agreed

MBA

Sub-17/03/17

Agrees with Ai Group

3.3

CFMEU

Reply submission – 06/04/17

Wording is not necessary in the clause. Only time the different types of training for part-time trainees is relevant is in calculating the wage rates as set out in A.4.2(f) – words are already contained within that clause.

Para 12

AMWU

Reply sub-07/04/17

Agree with Ai Group that the terms should be deleted.

Para 6

Ai Group

Reply sub – 11/04/17

Agree with MBA’s submission. Refers to Paras 21-25 of submission.

Para 5–6

13

Ai Group

Sub-24/03/17

A.4.1(a)

Minimum wages for full-time traineeships – Wage level A
For clause to be ‘simple and easy to understand’ should be amended to make clear that it operates subject to clause A.4.3.

Para 29

Agreed

AMWU

Reply sub-07/04/17

Agree with Ai Group.

Para 7-9

14

Ai Group

Sub-24/03/17

A.4.1(b)

Minimum wages for full-time traineeships – Wage level B
Clause should be amended to make clear that it operates subject to clause A.4.3.

Para 30

Agreed

AMWU

Reply sub-07/04/17

Agree with Ai Group.

Para 7–9

15

Ai Group

Sub-24/03/17

A.4.1(c)

Minimum wages for full-time traineeships – Wage level C
Clause should be amended to make clear that it operates subject to clause A.4.3.

Para 31

Agreed

AMWU

Reply sub-07/04/17

Agree with Ai Group.

Para 7–9

16

Ai Group

Sub-24/03/17

A.4.1(d)(i)

Minimum wages for full-time traineeships - AQF Certificate Level IV traineeships
Clause should be amended to make clear that it operates subject to clause A.4.3.

Para 32

Agreed

AMWU

Reply sub-07/04/17

Agree with Ai Group.

Para 7–9

17

Ai Group

Sub-24/03/17

A.4.1(d)(ii)

Minimum wages for full-time traineeships – AQF Certificate Level IV traineeships
Clause should be amended to make clear that it operates subject to clause A.4.3.

Para 33

Agreed

AMWU

Reply sub-07/04/17

Agree with Ai Group.

Para 7–9

18

MTA

Sub-24/03/17

A.4.2

Minimum wages for part-time traineeships
Amend title to read ‘Minimum hourly rates for part-time traineeships’.
The rates in subclauses are not the minimum wages and the calculation of the actual minimum wages is dealt with in A.4.2(f).

2.2.1

Agreed.

Changes to terminology have also been made to other clauses for consistency.

Ai Group

Reply sub – 11/04/17

Although amendment is not necessary, does not oppose the change proposed by MTA.

Para 7

19

Ai Group

Sub-24/03/17

A.4.2(a)

Minimum wages for part-time traineeships – Wage level A
Clause should be amended to make clear that it operates subject to clause A.4.3.

Further amended to make clear that it operates subject to clause A.4.2(f).

Para 34

Para 39

Agreed

AMWU

Reply sub-07/04/17

Agree with Ai Group Para 34

Para 7–9

20

Ai Group

Sub-24/03/17

A.4.2(b)

Minimum wages for part-time traineeships – Wage level B
Clause should be amended to make clear that it operates subject to clause A.4.3 and A.4.2(f).

Para 40

Agreed

21

Ai Group

Sub-24/03/17

A.4.2(c)

Minimum wages for part-time traineeships – Wage level C
Clause should be amended to make clear that it operates subject to clause A.4.3 and A.4.2(f).

Para 41

Agreed

22

Ai Group

Sub-24/03/17

A.4.2(d)

Minimum wages for part-time traineeships - School based traineeships
Cross reference to cl. A.4.1 should be replaced with reference to cl.A.4.3.

Para 42

Agreed

23

MTA

Sub-24/03/17

A.4.2(f)(i)

Calculating the actual minimum wage
Amend initial reference to ‘hourly minimum rate’ to ‘minimum hourly rate
This will provide better consistency in terminology in all three sub-clauses (i)-(iii) and also with A.4.2

2.2.2

Agreed

Ai Group

Reply sub – 11/04/17

Although amendment is not necessary, does not oppose the change proposed by MTA.

Para 8

24

MBA

Sub-17/03/17

A.5.3

Employment conditions
In the Note, ‘clause 0’ should read ‘clause A.4.2’

Para 3.5

Agreed. Correct clause reference is A.4.2(f)(ii).

AMWU

Sub-24/03/17

Reference to ‘clause 0’ at A.5.3 should be replaced with ‘clause A.4.2(f)(ii)

Para 5

Ai Group

Sub-24/03/17

Agrees with AMWU.

Para 60

CFMEU

Reply submission – 06/04/17

Agrees with MBA.

Para 14

Ai Group

Reply sub – 11/04/17

Agree with AMWU and MBA that reference to ‘clause 0’ should be amended.

Para 9

List of abbreviations (in alphabetical order)

Ai Group

Australian Industry Group

AMWU

Australian Manufacturing Workers’ Union

CFMEU

Construction, Forestry, Mining and Energy Union (Construction & General Division)

HIA

Housing Industry Association

MBA
MTA

Master Builders Australia
Motor Trade Association of South Australia

NTW

National Training Wage

PLRDS

Plain Language Re-draft of Schedule

Attachment B—Plain language draft of Miscellaneous Award 2010 NTW Schedule

Amendments to this schedule are based on agreed issues based on submissions of parties on or before 20 April 2017. The changes do not reflected a concluded view of the Commission.

Schedule A—National Training Wage
A.1 Definitions
A.1.1 In this schedule:

A.1.2 A reference in this schedule to out of school refers only to periods out of school beyond Year 10 as at 1 January in each year and is taken to:

A.2 Coverage
A.2.1 Subject to clauses A.2.2 to A.2.5, this schedule applies to an employee covered by this award who is undertaking a traineeship and whose training package and AQF certificate level are allocated to a wage level by clause A.6 or by clause A.4.4.
A.2.2 This schedule only applies to AQF Certificate Level IV traineeships for which a relevant AQF Certificate Level III traineeship is listed in clause A.6.
A.2.3 This schedule does not apply to:

A.2.4 If this schedule is inconsistent with other provisions of this award relating to traineeships, the other provisions prevail.
A.2.5 This schedule ceases to apply to an employee at the end of the traineeship.
A.3 Types of traineeship
The following types of traineeship are available:
A.3.1 A full-time traineeship based on 38 ordinary hours per week, with 20% of those hours being approved training;
A.3.2 A part-time traineeship based on fewer than 38 ordinary hours per week, with 20% of those hours being approved training provided:

A.4 Minimum Wages Rates
A.4.1 Minimum wages weekly rates for full-time traineeships

Column 1
Experience level of trainee

Column 2
Highest year of schooling completed

 

Year 10

Year 11

Year 12

 

per week

per week

per week

School leaver

    $302.20

    $332.80

    $396.50

Plus 1 year out of school

    $332.80

    $396.50

    $461.40

Plus 2 years out of school

    $396.50

    $461.40

    $537.00

Plus 3 years out of school

    $461.40

    $537.00

    $614.80

Plus 4 years out of school

    $537.00

    $614.80

 

Plus 5 or more years out of school

    $614.80

   

Column 1
Experience level of trainee

Column 2
Highest year of schooling completed

 

Year 10

Year 11

Year 12

 

per week

per week

per week

School leaver

    $302.20

    $332.80

    $385.80

Plus 1 year out of school

    $332.80

    $385.80

    $443.80

Plus 2 years out of school

    $385.80

    $443.80

    $520.40

Plus 3 years out of school

    $443.80

    $520.40

    $593.60

Plus 4 years out of school

    $520.40

    $593.60

 

Plus 5 or more years out of school

    $593.60

   

Column 1
Experience level of trainee

Column 2
Highest year of schooling completed

 

Year 10

Year 11

Year 12

 

per week

per week

per week

School leaver

    $302.20

    $332.80

    $385.80

Plus 1 year out of school

    $332.80

    $385.80

    $434.30

Plus 2 years out of school

    $385.80

    $434.30

    $485.20

Plus 3 years out of school

    $434.30

    $485.20

    $540.60

Plus 4 years out of school

    $485.20

    $540.60

 

Plus 5 or more years out of school

    $540.60

   

Column 1
Wage level

Column 2
First year of traineeship

Column 3
Second and subsequent years of traineeship

 

per week

per week

    A

    $638.50

    $663.20

    B

    $616.00

    $639.70

    C

    $560.60

    $581.80

A.4.2 Minimum wages hourly rates for part-time traineeships

Column 1
Experience level of trainee

Column 2
Highest year of schooling completed

 

Year 10

Year 11

Year 12

 

per hour

per hour

per hour

School leaver

    $9.94

    $10.96

    $13.05

Plus 1 year out of school

    $10.96

    $13.05

    $15.19

Plus 2 years out of school

    $13.05

    $15.19

    $17.66

Plus 3 years out of school

    $15.19

    $17.66

    $20.21

Plus 4 years out of school

    $17.66

    $20.21

 

Plus 5 or more years out of school

    $20.21

   

Column 1
Experience level of trainee

Column 2
Highest year of schooling completed

 

Year 10

Year 11

Year 12

 

per hour

per hour

per hour

School leaver

    $9.94

    $10.96

    $12.70

Plus 1 year out of school

    $10.96

    $12.70

    $14.60

Plus 2 years out of school

    $12.70

    $14.60

    $17.13

Plus 3 years out of school

    $14.60

    $17.13

    $19.54

Plus 4 years out of school

    $17.13

    $19.54

 

Plus 5 or more years out of school

    $19.54

   

Column 1
Experience level of trainee

Column 2
Highest year of schooling completed

 

Year 10

Year 11

Year 12

 

per hour

per hour

per hour

School leaver

    $9.94

    $10.96

    $12.70

Plus 1 year out of school

    $10.96

    $12.70

    $14.28

Plus 2 years out of school

    $12.70

    $14.28

    $15.95

Plus 3 years out of school

    $14.28

    $15.95

    $17.78

Plus 4 years out of school

    $15.95

    $17.78

 

Plus 5 or more years out of school

    $17.78

   

Column 1
Year 11 or lower

Column 2
Year 12

per hour

per hour

    $9.94

    $10.96

Column 1
Wage level

Column 2
First year of traineeship

Column 3
Second and subsequent years of traineeship

 

per hour

per hour

    A

    $21.00

    $21.82

    B

    $20.24

    $21.03

    C

    $18.44

    $19.15

A.4.3 Other minimum wage provisions

A.4.4 Default wage rate

A.5 Employment conditions
A.5.1 A trainee undertaking a school-based traineeship may agree to be paid an additional loading of 25% on all ordinary hours worked instead of being paid annual leave, paid personal/carer’s leave, paid compassionate leave and paid absence on public holidays. However, if the trainee works on a public holiday, the public holiday provisions of this award apply.
A.5.2 A trainee is entitled to be released from work without loss of pay and without loss of continuity of employment to attend any training and assessment specified in, or associated with, the training contract.
A.5.3 Time spent by a trainee, other than a trainee undertaking a school-based traineeship, in attending any training and assessment specified in, or associated with, the training contract is to be regarded as time worked for the employer for the purposes of calculating the trainee’s wages and determining the trainee’s employment conditions.
NOTE: The time to be included for the purpose of calculating the wages for part-time trainees whose approved training is fully wholly off-the-job is determined by clause A.4.2(f)(ii) and not by this clause.
A.5.4 Subject to clause A.2.4, this award applies to a trainee in the same way that it applies to an employee who is not a trainee except as otherwise expressly provided by this schedule.
A.6 Allocation of Traineeships to Wage Levels
The wage levels applying to training packages and their AQF certificate levels are:
A.6.1 Wage level A

Training package

AQF certificate level

Aeroskills

II

Aviation

I, II, III

Beauty

III

Business Services

I, II, III

Chemical, Hydrocarbons and Refining

I, II, III

Civil Construction

III

Coal Training Package

II, III

Community Services

II, III

Construction, Plumbing and Services Integrated Framework

I, II, III

Correctional Services

II, III

Drilling

II, III

Electricity Supply Industry—Generation Sector

II, III
(III in Western Australia only)

Electricity Supply Industry—Transmission, Distribution and Rail Sector

II

Electrotechnology

I, II, III
(III in Western Australia only)

Financial Services

I, II, III

Floristry

III

Food Processing Industry

III

Gas Industry

III

Information and Communications Technology

I, II, III

Laboratory Operations

II, III

Local Government (other than Operational Works Cert I and II)

I, II, III

Manufactured Mineral Products

III

Manufacturing

I, II, III

Maritime

I, II, III

Metal and Engineering (Technical)

II, III

Metalliferous Mining

II, III

Museum, Library and Library/Information Services

II, III

Plastics, Rubber and Cablemaking

III

Public Safety

III

Public Sector

II, III

Pulp and Paper Manufacturing Industries

III

Retail Services (including wholesale and Community pharmacy)

III

Telecommunications

II, III

Textiles, Clothing and Footwear

III

Tourism, Hospitality and Events

I, II, III

Training and Assessment

III

Transport and Logistics 1

III

Water Industry (Utilities)

III

A.6.2 Wage level B2

Training package

AQF certificate level

Animal Care and Management

I, II, III

Asset Maintenance

I, II, III

Australian Meat Industry

I, II, III

Automotive Industry Manufacturing

II, III

Automotive Industry Retail, Service and Repair

I, II, III

Beauty

II

Caravan Industry

II, III

Civil Construction

I

Community Recreation Industry

III

Entertainment

I, II, III

Extractive Industries

II, III

Fitness Industry

III

Floristry

II

Food Processing Industry

I, II

Forest and Forest Products Industry

I, II, III

Furnishing

I, II, III

Gas Industry

I, II

Golf Clubs and Facilities 2

II, III

Health

II, III

Local Government (Operational Works)

I, II

Manufactured Mineral Products

I, II

Metal and Engineering (Production)

II, III

Outdoor Recreation Industry

I, II, III

Plastics, Rubber and Cablemaking

II

Printing and Graphic Arts

II, III

Property Services

I, II, III

Public Safety

I, II

Pulp and Paper Manufacturing Industries

I, II

Retail Services

I, II

Screen and Media

I, II, III

Sport Industry

II, III

Sugar Milling

I, II, III

Textiles, Clothing and Footwear

I, II

Transport and Logistics

I, II

Visual Arts, Craft and Design

I, II, III

Water Industry

I, II

A.6.3 Wage level C3

Training package

AQF certificate level

Agriculture, Horticulture and Conservation and Land Management

I, II, III

Funeral Services

I, II, III

Music

I, II, III

Racing Industry

I, II, III

Rural Production

I, II, III

Seafood Industry

I, II, III

NOTE 1 The Rail, Tram and Bus Union Australia proposed replacing the ‘Transport and Logistics’ training package with the ‘Transport and Distribution’ training package at Certificate III (see submission dated 17 October 2014).
NOTE 2 The Professional Golfers’ Association propose the addition of a ‘Golf Clubs and Facilities’ training package in Wage Level B (see submission dated 28 September 2015).
NOTE 3 The National Farmers’ Federation proposed replacing the three existing training packages titled ‘Agri-Food, Amenity Horticulture, and Conservation and Land Management’ with one consolidated training package titled ‘Agriculture, Horticulture and Conservation and Land Management’ (see submission dated 29 July 2016).

 1   [2017] FWCFB 3176

 2   [2017] FWCFB 1095

 3   [2017] FWCFB 1095 at 5.