AIBS National News

The Federal Government’s modern award system commenced on 1 January, and while many aspects of the modern award appear familiar, the switch to the modern award is far from seamless for employers in the residential building industry.

It is important that employers familiarise themselves with the modern awards relevant to their business. For example, the Building and Construction General On-site Award 2010 now applies to many HIA members who directly employ their on-site labour.

Members should also be familiar with the transitional provisions of the modern awards, particularly those involving the calculation of wages.

The modern award base rates of pay (including industry allowance), casual loadings and penalty and shift rates do not start until 1 July 2010 . However, all other allowances and terms and conditions of employment in the new modern awards, including those dealing with classifications, hours of work, rostered days off and redundancy, have now come into effect.

The award modernisation arrangements should not result in a reduction of employees’ take home pay, even though some allowances may be reduced. There are protections available for employees in these circumstances.

Unfortunately the Federal Government (through Fair Work Australia) has not yet published up to date pay scale summaries that reflect modern award allowances, making it problematic to accurately determine minimum wages.

To assist members in calculating wages, HIA has prepared some provisional information sheets. These information sheets are available for members from the HIA Info Centre.

However, until Fair Work Australia releases updated and relevant pay scale summaries, HIA anticipates uncertainty and confusion for construction employers. HIA has stressed to Fair Work Australia the unsatisfactory position employers have been forced into and will continue to underline the urgency of finalising the information needed by residential construction industry employers to meet their award obligations.