One of the key changes to the federal IR system took effect on 1 January 2010 when the new federal “Modern Awards” commenced operation.
Who are covered by Modern Awards?
Modern Awards apply to employers that are constitutional trading corporations. This usually means employers structured as a Pty Ltd entity and some family trusts with an ACN. Modern Awards are based on industries or occupations.
Do Modern Awards Cover Everyone?
Modern Awards do not apply to:-
* Employees in the federal IR system who earn more than $108,300 as a “guaranteed amount”
for 12 months (this includes salary/wages/salary sacrifice/agreed non-monetary amounts
but not superannuation or bonuses). This annual guaranteed salary will be indexed every 12
months.
* Employers and employees who remain covered by the Western Australian IR system.
What’s in a Modern Award?
Modern Awards contain basic conditions and operate in conjunction with the new National Employment Standards (NES).
Employers subject to the new Modern Awards must also be aware of the NES as both impose employment conditions.
Do Wages/Allowances Increase under Modern Awards?
Some employers will incur increases in wage rates and allowances. As a result, the AIRC has applied the following approach to soften the impact on employers.
* Increases in expense and work related award allowances will be payable from 1 January 2010.
* Any increase in wages will be phased-in over a 5 year period commencing 1 July 2010.
Master Builders Australia is currently consulting with industry parties to determine what the agreed wage increases are from next July and the phase-in increments.
Which Modern Awards Apply to Building Industry Employers?
The Modern Awards which have application in the building industry will be, but are not limited to:-
* Building and Construction General On-site
* Joinery and Building Trades (off-site award)
* Clerks-Private Sector
* Mobile Crane Hiring
* Plumbers and Fire Sprinklers
* Electrical, Electronic and Communications Contracting Award (electrical contracting)
* Concrete products Award (precast & tilt-up)
* Asphalt Industry Award (road making/car parks)
* Pest Control
* Manufacturing and Associated Industries (building product manufacture)
* Premixed Concrete Award (production)
* Timber Industry Award (includes timber product manufacture)
What Should Employers Do?
Employers who are constitutional trading corporations, that is, are Pty Ltd entities should:-
* Obtain copies of the relevant modern awards that will apply to their workplace; and
* A copy of the National Employment Standards (NES)
Both can be accessed (free of charge) from the Australian Industrial Relations Commission (AIRC) website www.airc.gov.au
Award Service
Modern Award
Master Builders will provide an annotated (has guidance notes) loose leaf version of the Building and Construction General On-site Award to members on a fee for service basis from February.
State Awards
Master Builders will offer a loose leaf copy of the major state building trades awards on fee for service basis for members on request.
Members can contact Kim Richardson on 9476 9800 for more information.
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