Labour standards and practice

Minimum wages and their role in the process and incentives to bargain 2013

Client:  Fair Work Commission (formerly Fair Work Australia)

As part of its Annual Wage Review, the Minimum Wage Panel of the Fair Work Commission funds research to understand the wider impacts of its decisions. This project addresses two research questions:

  1. how do minimum wage increases impact on over award and agreement rates of pay?, and
  2. how do minimum wage increases impact on the incentive to bargain?

The study included enterprise case studies, content analysis of enterprise agreements, a quantitative analysis of enterprise agreements, and the generation and statistical analysis of workplace survey data. This multi-method approach was used to investigate the motivations, processes and outcomes of wage setting at the workplace level, and examined the role that the minimum wages increases play in shaping agreement-making and over award wage determination.

Report Available Online