Australia’s lowest-paid truck drivers and transport workers are set to receive a significant wage increase following the Fair Work Commission’s annual review of modern award minimum wages.
From the first full pay period starting on or after July 1, the national minimum wage will rise by 3.5 per cent, lifting the federal minimum wage for award-free employees to $24.95 per hour, the equivalent of $948 per week.
That’s an increase of $32.10 per week, or 84 cents per hour.
The Queensland Trucking Association (QTA) shared the news with its members, confirming that all modern award classification scales increase by 3.5 per cent (rounded to the nearest 10 cents).
The changes apply across a range of modern awards that cover the transport and logistics sector, including:
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Road Transport and Distribution Award 2020
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Road Transport (Long Distance Operations) Award 2020
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Clerks – Private Sector Award 2020
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Vehicle Repair, Services and Retail Award 2020
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Waste Management Award 2020
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Manufacturing & Associated Industries and Occupations Award 2020
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Storage Services and Wholesale Award 2020
The QTA reminded members that if they have enterprise agreements in place, they need to ensure that the agreement rates meet or exceed the new minimum award rates.
“If the agreement pay increases are linked to the panel’s decision, the pay rates will need to be adjusted within the Workplace Agreement accordingly,” the QTA says.
The association also clarified that while above-award payments can absorb the wage increase, employers must tread carefully when it comes to offsetting other entitlements.
“Be aware the Fair Work Ombudsman makes it clear that over-award pay rates can NOT off-set other award entitlements (e.g. penalties or loadings) unless there is a formal agreement in place,” the QTA said.
Wages for juniors, trainees, and apprentices will also rise proportionally in line with the minimum wage increase.
The QTA encouraged operators needing help to formalise workplace conditions to reach out, saying it can assist in developing agreements certified by the Fair Work Commission.
“Members will receive amendments to their relevant Modern Award(s) specifying the new Pay Rates adjusted by the 3.5 per cent increase, once the awards are formally amended by the Fair Work Commission,” the association says.
“We hope this will be within a short timeframe and prior to the end of June.”
The increase represents a welcome boost for thousands of transport workers nationwide, many of whom continue to work tirelessly in the face of economic pressures and supply chain challenges.