RCSA unique knowledge of labour market influences submission to AFPC

The Recruitment and Consulting Services Association has welcomed the opportunity to provide a set of guiding principles to the Australian Fair Pay Commission.

This is the first time the Association has been able to make a submission to a wage review, as previous reviews were made within the Australian Industrial Relations Commission.

ìWe are very well placed to provide the AFPC with early indications of change within the labour market given that our Members recruit and employ a significant number of Australians directly, on-hire and on behalf of clients, across every industry sector in the economy,î said Julie Mills, CEO of the RCSA.

ìThe breadth of our market analysis is unique in that we believe no other industry has the capacity to obtain an insight in to the hiring intentions and capacity of Australian employers like we do, as this is at the cornerstone of our Membersí businesses,î she said.

In a letter to the AFPC regarding the minimum wage determination, the RCSA offered its support for regularly reviewed minimum wages, determination based on medium to long term assessment of social and economic impacts, and the consideration of the capacity of particular industry sectors to pass on minimum wage increases.

In particular, the RCSA:

1. Supports a responsible and sustainable increase to the minimum wage that does not adversely impact upon the hiring intentions of Australian employers;

2. Believes that any increase to minimum wages under this review should flow on to casual employees and at no time should minimum wages for casual employees be established which reduce the incentive of employers to employ casual employees, as this form of engagement remains a truly valid means by which individuals can enter and re-enter the labour market;

3. Recommends that current default casual loading of 20% should remain unchanged; and

4. Suggests that there should be a reasonable notice period of three months for the introduction of minimum wage increases to allow employers within the employment services industry to comply with such variations.