We recently had a question: “I heard I could make $3,000 a week working as a labourer – is that the award now?” The question was prompted by a lot of recent media coverage, an expose by the TV show Sixty Minutes into unions, and general discussions I’ve become aware of throughout sites.

It highlighted to me four issues that are topical with thought leaders in the industry at the moment:-

1. Employees are often after the ‘biggest buck’ without considering the implications;
2. Often Employees don’t know what they are entitled to as a worker (and some Employers);
3. Do CPI pay rises always apply and what Employers need to do to ensure compliance;
4. What is fair and reasonable for wages and entitlements, and what impact does that have on us as an overall society?

So, let’s unpack these one by one.

1.    Is the ‘Biggest Buck’ The End Game for Employees?

In my experience, a flat-out no! Chasing the highest salary might seem like the ultimate goal, but as an employee, there's much more to job satisfaction and long-term success. While a hefty paycheque is appealing, it often comes with the trade-off of increased stress and longer hours. Moreover, moving into a higher tax bracket can diminish the actual take-home pay, making the salary boost less impactful than anticipated.

Beyond the dollar signs, a quality employer offers benefits that enhance work-life balance and personal growth. Flexible working hours, remote work options, and generous leave policies contribute significantly to job satisfaction and mental well-being. Access to professional development, such as courses, workshops, and seminars, can be invaluable for career advancement and personal fulfilment.

Another crucial aspect is a supportive workplace culture. Employers who prioritise employee well-being, foster inclusivity, and encourage open communication create an environment where people feel valued and motivated. This can lead to greater job satisfaction and loyalty, outweighing the lure of a higher salary elsewhere.

When negotiating with an employer, it’s worth considering benefits like additional leave, wellness programs, or opportunities for career development. These perks can offer tremendous value and contribute to a more balanced and rewarding professional life, making them often more advantageous than a mere salary increase.

2.    Employee Entitlements

When I first started in the industry, we had the Awards printed out and highlighted for important notes and it was called our “Working Bible” and we had to know it back to front and inside out. We interpreted what a worker earned by analysing the paper timesheets handed in.

Obviously times have moved on and there are many industry programs that your input data in and it pops out an answer. However, I also know there are many young ones in the recruitment industry that do not know the Awards back to front and inside out, and data output is only as good as the data input after all. Right? So yes, unless you have an outstanding knowledge of the award, and an ability to critically and instinctively assess the output of the data and know where something is not right, it can and does cause problems. I have often found in the industry other recruiters and providers that simply have got it wrong and have been paying incorrectly, putting the employee (and sometimes employer) at a financial disadvantage and running the risks of fines and penalties.

Also, there are requirements in the Award around safety and hazards. As a recruiter, particularly providing labour hire, I visit sites often. This gives me a clear picture of the conditions on site, the culture the employer is setting for their standards and safety of their employees, and safety issues to address. This in-depth understanding of sites, conditions and entitlements is a missed opportunity that a lot of recruiters won’t move from their desks to build into their skillset unfortunately.

This article isn’t an explanation about what workers are entitled to, as I think that would be a longer read than the actual awards themselves. What it is meant to highlight is that an understanding of the Award is needed, the employment conditions and rates, and I encourage workers to read their Award for themselves, and to keep up to date as Awards and rates change regularly, particularly with the regular CPI adjustments each year. All awards that specify employment conditions and rates can be freely accessed at:
 https://www.fairwork.gov.au/employment-conditions/awards

This article highlights that there are intricacies to understand, and most importantly, that you have access to someone that you really trust to ask and explain what these mean for you (this goes for Employers too).

The Awards we work under in the building and construction industry are diverse. Amongst these are some of the most popular we use:-

·       Building and Construction General On-site Award;

·       Timber Industry Award;

·       Joinery and Building Trades Award;

·       Manufacturing and Associated Industries and Occupations Award;

·       Electrical, Electronic and Communications Contracting Award;

·       Plumbing and Fire Sprinklers Award;

·       Gardening and Landscaping Services Award;

·       Clerks Private Sector Award;

·       Professional Employees Awards.

These Awards are comprehensive documents outlining the minimum employment standards for workers within the Australian construction and associated sectors. The awards provide a wide range of entitlements to employees, ensuring fair and equitable working conditions across the industry. Key entitlements under the award include minimum wages, various allowances, overtime rates, provisions for shift work, and different types of leave, including annual leave, personal/carer’s leave, and public holidays.

The Awards set out different rates depending on your experience on a job site. For example, once you have 6 months experience on a job site, you will move up to another level of pay rate, so you need to be aware of this to keep your employer accountable.

For instance, employees are entitled to specific allowances depending on their job roles and the conditions they work under. These allowances can cover aspects such as working in confined spaces, handling hazardous materials, and travel. Overtime rates are also prescribed, typically requiring employers to pay 1.5 times the regular rate for the first two hours of overtime and double time thereafter. Shift work is addressed with penalty rates for working outside of standard hours, ensuring that employees are compensated for work that disrupts their regular schedules.

However, the awards’ complexity means that applying it correctly can be challenging. One significant aspect is how different entitlements can interact and potentially cancel each other out. For example, an employee receiving a specific site allowance might not be eligible for certain overtime payments if their total compensation already exceeds a certain threshold. Similarly, when allowances are provided for particular conditions, those allowances may be designed to cover additional expenses that might otherwise require separate compensation, thereby negating other entitlements.

Navigating these complexities requires a deep understanding of the award. Employers must be adept at interpreting the precise language and stipulations to ensure compliance. Incorrect application of the award can lead to underpayment claims, disputes, and potential legal action. This is why expertise in the relevant Awards is crucial for employers. They need to accurately calculate wages and entitlements, understand the interplay between different provisions, and stay updated with any changes to the award to maintain lawful and fair employment practices.

Employers often rely on outsourcing employment (like to SiteForce Recruitment) who specialise and manage these intricacies effectively. This expertise helps in avoiding costly errors and maintaining a harmonious workplace, ensuring that all employees receive their due entitlements while the business operates within the legal framework.

3.    Do CPI pay rises always apply and what Employers need to do to ensure compliance?

Firstly:-

• Check that all employees are being paid at least the minimum wage.
• For employees that are award covered, ensure that employees are paid at least the increased minimum award rates from the first full pay period starting on, or after, 1 July 2024.
• Where employees are covered by an enterprise agreement, ensure that the base rates of pay provided under that agreement are at least equivalent to the new minimum rates of pay under the applicable award or the minimum wage order.
• Employers who use ‘all-inclusive’ salaries (such as via set-off clauses in their employment contracts or by using annualised salary arrangements) must ensure that the salary “buffer” is sufficient to cover off all of the employees’ minimum entitlements each pay period, taking into account the increased minimum wages.
• Please note that there is not necessarily an obligation to pass on a wage increase to all employees. Where you pay an employee above the minimum wage rates, it may be possible for the increases to be absorbed without wages actually increasing. However, in conjunction with the further increase of the superannuation guarantee to 11.5% (from 11% currently), you should check this carefully to ensure your wage rates are still compliant.
• Significant penalties exist under federal law and, in some cases, state laws for getting wage rates wrong. Of course, you could simply outsource all of these challenges to the team at SiteForce Recruitment.

4.    What is fair and reasonable and what impact does that have on us as an overall society?

So, back to the $3000 a week question from the labourer.

Sustainability, both personal and societal, is greatly enhanced when fair and reasonable compensation practices are upheld, fostering a stable and productive workforce that contributes to economic and social well-being.

Fair and reasonable expectations regarding employee compensation are fundamental to a balanced and productive workplace. Employees generally expect that their remuneration will reflect the nature and level of their responsibilities, their skill set, and their experience.

Fair compensation also means that wages should provide for a decent standard of living, including the ability to cover basic expenses such as housing, food, and healthcare. When employers adhere to these expectations, they not only foster a motivated and committed workforce but also contribute to the stability and well-being of their employees, which in turn benefits the broader economy.

On a societal level, fair and reasonable pay practices have far-reaching effects. When employees receive appropriate compensation, they are more likely to engage in consumer spending, which drives economic growth and supports local businesses. Additionally, fair wages reduce income inequality, leading to a more equitable society. This can decrease the need for government assistance programs and foster social cohesion by diminishing economic disparities between different groups. Fair pay is not just a matter of individual or organisational ethics but a critical component of a healthy, functioning society.

Furthermore, the impact of fair compensation extends to workplace dynamics and overall job satisfaction. When employees perceive their pay as fair, they are more likely to experience higher job satisfaction, reduced stress levels, and increased loyalty to their employer. This positive environment can lead to lower turnover rates and enhanced productivity, benefiting both the organisation and the wider economy. By investing in fair compensation, employers contribute to a more sustainable and supportive work culture, which ultimately supports societal well-being and economic stability.

When greed influences project management, especially in government-funded initiatives, it can undermine public trust and efficiency. Projects funded by taxpayers’ money should prioritise transparency and fairness, ensuring that funds are allocated appropriately to deliver the intended benefits to the community.

This misallocation of funds can result in subpar outcomes and diminished value for the taxpayer, impacting the overall effectiveness of public investments and potentially leading to reduced public support for future initiatives. In such cases, ensuring strict oversight and accountability is crucial to maintain the intended purpose of taxpayer-funded projects and safeguard public interests. In the end, we all end up paying for someone else’s greed.

When individuals or organisations involved in these projects prioritise excessive personal gain over the project's goals, it not only wastes public resources, it also erodes confidence in governmental and institutional integrity. It raises the distaste and dissatisfaction of society. We need to be educated, and have the ability to have difficult conversations and be able to present a proposition that is reasonable to all parties (including the public purse if involved). As the cost-of-living rises, the industry will have more of these conversations in the near future, so get ready.

I think we’re better than this and we really need to think about the impact we are having for long-term sustainability, for our industry, for our jobs, and for our country.

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Our leading 'superpower' is attracting and retaining quality team members who share our values of honesty, integrity, diligence, and service, allowing us to deploy quality team members on client sites quickly.

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Read other informative articles for both employers and workers at: https://www.siteforcerecruitment.com.au/blogs

Chantal Penny is the Director with Superpowers of SiteForce Recruitment. A thought leader in the industry, Chantal, based on her expertise and industry perspective, offers unique guidance, inspiration, and influence in the industry. Chantal Penny is also a thought leader in the industry with her Podcast, Talent Instinct, which is available at:
  https://talentinstinctpodcast.libsyn.com/site

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