Enterprise case studies: effects of minimum wage-setting at an enterprise level

• Justine Evesson, Sarah Oxenbridge, and others
• Fair Work Australia

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17 June 2011This report presents the findings of a qualitative longitudinal study examining the impact of the minimum wage increase afforded by the Annual Wage Review 2009–10 Decision on a sample of minimum wage-reliant enterprises and their employees.The study focused on enterprises in the Community Services, Manufacturing, Retail and Hospitality industries. The paper is divided into three Parts: Part 1 examines the operating context and industrial landscape of the case study enterprises, Part 2 outlines changes that occurred to the enterprises from March 2010 to November 2010, and Part 3 provides a synthesis of research findings over the three phases of research.

The paper includes a number of findings relating to the operation of minimum wage-reliant enterprises and the impact of contextual factors—including the Annual Wage Review 2009–10 Decision’s minimum wages increases—on the case study enterprises and their employees. Although the array and pattern of pressures experienced by employers and employees varied across the enterprises, there was a consistent finding that the 1 July 2010 minimum wages increase had a limited effect on enterprises and their business performance within those broader operating contexts. Further, many employers regarded minimum wages increases as important for maintaining the living standards of their employees. Employee participants to the study generally believed the wage rise had prevented them from falling further behind the cost of living. It was also apparent that statutory wage increases were the only increases to earnings that some employees were likely to experience. However, findings indicated that a smaller vulnerable group of employees may not have been receiving the earnings they were entitled to, most commonly in the area of classification.

Authors: 

Part 1: Justine Evesson, Sarah Oxenbridge, Hanna Schutz, Susanna Baldwin, Maja Moensted and John Buchanan

Part 2: Justine Evesson, Sarah Oxenbridge and Hanna Schutz

Part 3: Justine Evesson and Sarah Oxenbridge