The purpose of this Circular is to advise you on the judgement in the State Wage Case on 3 June 1998. There are no immediate implications for the NSW public sector.

The Industrial Relations Commission of NSW (IRC) awarded the same safety net adjustments for State Awards as determined by the Australian Industrial Relations Commission in the recent National decision. That is:

The Award Review Classification Rate has been determined as $373.40 per week, an increase of $14.00 per week on the amount fixed in 1997. This rate is for full time adult employees working a 38 hour week.

The increases granted are fully absorbable into all wage increases other than safety net, State Wage Case adjustments and minimum rates adjustments available since 29 May 1991. It should be noted that awards are not adjusted automatically as a result of this decision. The increases are available by application only.

An increase of 3.1% is also available on application for:

(i) existing allowances which relate to work or conditions which have not changed, including shift allowances expressed as monetary amounts and service increments; and

(ii) junior rates expressed as monetary amounts.

The Industrial Registrar is required to report to the IRC by 31 October 1998 on the progress of award variations.

Some procedural changes to the Commission's Wage Fixing Principles were agreed by the parties and adopted by the IRC. However, the Commission rejected a submission by the Transport Workers' Union (TWU) which would have meant exclusion from the 'full absorption' principle for TWU awards.

Any enquiries may be directed to your Client Contact Officer in the Employee Relations Division of the Public Sector Management Office.

C. Gellatly
Director-General