United Nations Public Service Awards Case Studies

The Australian Fair Pay Commission (Commission) is an independent agency responsible for adjusting federal minimum and classification wages in Australia. The Commission undertakes annual Minimum Wage Reviews and announces its Wage-Setting Decisions in July of each year.

The Workplace Relations Act 1996 (WR Act) assigns the Commission an overarching objective ‘to promote the economic prosperity of the people of Australia’. Decisions announced by the Commission directly affect up to 1.4 million Pay Scale reliant workers and the businesses that employ them.

In fulfilling its wage-setting function, the Commission must have regard to four key criteria:
• the capacity of the unemployed and the low-paid to obtain and remain in employment;
• employment and competitiveness across the economy;
• providing a safety net for the low-paid; and
• providing minimum wages for junior employees, employees to whom training arrangements apply and employees with disabilities that ensure those employees are competitive in the labour market.

On establishment in 2006, a key challenge for the Commission was to implement a new system for reviewing minimum wages. Prior to 2006, the federal wage-setting role was performed by the Australian Industrial Relations Commission (and its predecessors) for almost 100 years using an adversarial process.

Upon establishment, the Commission made a commitment to consult extensively with a broad cross-section of the Australian community, in order to ensure a wide range of opinion and comment from stakeholders was available to Commissioners to inform their decision-making process. The Commission endorsed a minimum wage review process guided by the principles of independence, openness, honesty, transparency and fairness and decided that information would be gathered through RESEARCH, CONSULTATION AND SUBMISSIONS.

The Commission is supported by the Australian Fair Pay Commission Secretariat. The Secretariat is responsible for developing strategies and implementing processes that support the Commission in fulfilling its wage-setting requirements.

A key undertaking of the Secretariat has been the development of a consultation model that allows the Commission to achieve its goal of inclusive, broad-reaching consultation. The information-gathering needs of the Commission are unique among federal government agencies. The consultations conducted bring together the fields of public consultation, stakeholder consultation and also utilise economic research. Unlike other agencies, the Commission does not seek to affect behavioural change in any way. The ultimate objectives of the consultation process are to develop a deep understanding of the attitudes, opinions and behaviours of those Australians most affected by minimum wage adjustments and to present this for the consideration of the Commission.

One of the most significant challenges for the Secretariat has been reaching and engaging with individuals who are hard to access using traditional or conventional consultation methods. This challenge is further complicated by the fact the Commission is a national agency and there are significant variations in employment and growth across Australia’s states and territories, as well as across regional and metropolitan areas. The Commission aims to reach an understanding of how these variations impact on local labour markets through nationwide research and consultation with difficult-to-reach individuals.

What is the initiative about? (the solution)
The Commission has completed three minimum wage reviews since 2006 and with each wage review the consultation model has evolved. To date, the Commission has held more than 250 meetings with stakeholder organisations, received more than 300 written submissions, published 15 commissioned research papers, and travelled across Australia talking to people directly affected by its decisions. In response to the Commission’s information requirements, the Secretariat has developed a consultation process including over 100 focus groups, established online bulletin boards, and implemented a range of other innovative consultative methods. The Secretariat’s HYBRID CONSULTATION MODEL, involving stakeholder meetings, social research and face-to-face dialogue between Commissioners and Australians directly affected by its decisions, has been recognised with the Australian Government Leadership Network 2008 Award for Innovation (Victoria). The chief innovation praised by the judging panel was the strategic selection of traditional and contemporary consultation and social research methodologies, and how these have been applied to engage a broad cross-section of Australians on issues regarding minimum wages. The public consultation program developed by the Secretariat involves a mix of focus groups, in-depth interviews, online discussion forums and consultative discussions between Commissioners and target audiences. A key benefit of this public consultation approach has been the Commission’s ongoing access to the views and experiences of groups who are unlikely to be involved directly in dialogue with Government on matters that affect them. For example, mini-groups (discussions involving four or five people, smaller than standard focus groups) and in-depth interviews have been utilised to facilitate more effective communication between the Commission and indigenous Australians and between the Commission and Australians from non-English speaking backgrounds. The broad-reaching and inclusive nature of the consultation process means that it provides a valuable ‘real-world’ context to the economic and social data that also informs the Commission’s decision-making. For example, it is widely accepted that low-paid workers and unemployed are not homogenous groups, and that there is significant diversity of circumstance and experience within these groups. There are myriad factors which influence the labour market status of these Australians, although key differential factors include age, cultural background and indigenous/non-indigenous background. It is of great benefit to the Commission to understand and consider this diversity in its decision-making. A further benefit of the evolving consultation process has been the positive response of key stakeholders, as revealed in stakeholder research undertaken in June 2008. The Secretariat’s consultation process has contributed to effective stakeholder relationships and has successfully demonstrated to stakeholders that openness, transparency and accountability are key elements in the Commission’s information gathering and decision-making processes. As stated in the 2008 Stakeholder Report: “The experience of key stakeholders throughout the Commission’s 2008 Minimum Wage Review was generally very positive. Stakeholders expressed satisfaction with processes employed by the Commission. Several stakeholders reported very high satisfaction, and strongly endorsed both the overall architecture and approach, and/ or specific elements of the process. All stakeholders interviewed reported that they were satisfactorily engaged in the process, had an opportunity to contribute and felt that they were heard.”

Who proposed the solution, who implemented it and who were the stakeholders?
The consultation program is developed, implemented and coordinated by the Australian Fair Pay Commission Secretariat for the Commission. The Commission has been open to exploring new approaches to consultation based on recommendations made by the Secretariat. While recognising the importance of continuity and consistency (along with the importance of not having too much change occurring at the same time or introducing ‘change for the sake of change’), the Secretariat has developed an evolving consultation program to ensure each minimum wage review highlights relevant issues, provides insight, and effectively and efficiently flows into the Commission’s decision-making process. Furthermore, the consultation strategies are developed to deliver results in a cost-effective and timely manner. Key stakeholders of the Commission include: low-paid employees, junior employees, trainees/apprentices, employees with a disability, unemployed Australians, employers of low-paid workers, the peak body organisations who represent the interests of these groups, state and territory governments and the federal government. Furthermore, as members of the Indigenous community and Australians from non-English speaking backgrounds are over-represented among the low-paid and unemployed in Australia, the Secretariat’s consultation model ensures the Commission has regular interaction with these communities and the peak body organisations representing their interests.

Describe how and when the initiative was implemented by answering these questions
a. What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
In its first consultations in mid-2006, the Secretariat organised face-to-face meetings for Commissioners with key stakeholder organisations in all states and territories. This was complemented by a series of nationwide public meetings involving Commissioners and Secretariat staff. While the public meetings successfully raised awareness of the Commission and its activities, they did not always successfully reach the Commission’s target audiences, including low-paid employees, junior employees, trainees, workers with a disability, unemployed Australians, and employers of low paid workers. Recognising that a new approach was required to successfully engage these groups, the Secretariat trialled a series of targeted focus group discussions across three states. The targeted approach of these group discussions proved more effective than the public meetings in informing the Commission about the views and experiences of Australians directly affected by its decisions. The experience gained through the 2006 consultation program highlighted to the Secretariat the need for an innovative and evolving consultation strategy, developed with the needs of both the Commission and its range of stakeholders in mind. Public awareness benchmarking research and stakeholder evaluative research were commissioned in the months after the 2006 wage-setting decision announcement to inform the development of future consultation strategies. The Secretariat committed itself to continuous improvement through being a ‘learning organisation’. Following the completion of each minimum wage review – conducted from November to May each year – the COMMUNICATIONS AND CONSULTATION STRATEGY is evaluated by both the Commission and Secretariat. In addition to this internal review, the stakeholder and benchmarking surveys conducted annually help the Secretariat evaluate the effectiveness of the consultation process, and identify where improvements can be made. These evaluations form the basis for the development of subsequent strategies, which ensures the Secretariat continues to be innovative and responsive, and that its Consultation Strategy reflects current challenges and requirements. In order to inform the Commission’s stakeholders of the importance placed on effective consultation, a CONSULTATION CHARTER was developed in 2007. This charter is based on principles consistent with those developed by the Office of Best Practice Regulation and with the Commission’s own principles expressed in its Forward Plan 2007-09. The Secretariat facilitates a stakeholder DISABILITY ROUNDTABLE which brings together representatives of workers with a disability, their employers, employee organisations and government to discuss issues specifically related to disability wages. Membership includes several of the Commission’s key stakeholder organisations. The Secretariat established a stakeholder RESEARCH ADVISORY COMMITTEE that met for the first time in late 2006. This committee brings together Commissioners and key stakeholders to identify gaps in minimum wages research and future research priorities for the Secretariat.

b. What were the key development and implementation steps and the chronology? No more than 500 words
The Secretariat’s Consultation Strategy targets the Commission’s key audiences through a number of social research methodologies and face-to-face meetings. The Strategy includes a balance of (i) formalised processes such as meetings arranged for Commissioners with key stakeholder organisations and (ii) opportunities for Commissioners to have more informal exchanges with Australians directly affected by its decisions. These opportunities included BUSINESS CONSULTATIVE GROUPS with employers from a range of industries, and SITE VISITS to businesses. The use of FOCUS GROUPS with low-paid and unemployed audiences, piloted in the 2006 Minimum Wage Review, proved successful in gathering the views of Australians directly affected by the Commission’s decisions. The focus groups attracted and engaged participants who might not usually attend public meetings or speak up for their interests, including low-paid employees, junior employees, and the unemployed. The Consultation Strategy evaluation found that independent facilitators running the focus groups on behalf of the Commission made it easier for those less able to express themselves under the pressure of the public meeting environment to contribute. The Secretariat did, however, identify the absence of key sub-groups, including Indigenous and non-English speaking Australians. It was agreed that that these audiences were best accessed in their communities rather than being involved in the focus group discussions. The evaluation identified opportunities to elicit more detailed information from some key groups (particularly employer and junior participants), and that some target audiences were difficult to recruit due to constraints of timing or attendance at a selected venue. These challenges prompted an examination (in 2006) of research methodologies used successfully in the private sector. Specifically, the Secretariat explored how Web 2.0 technologies might be applied within a government social research setting. The Secretariat (with their social research provider) identified and adapted an approach to conducting public consultation research online. For its 2007 review, the Commission agreed to trial ONLINE BULLETIN BOARD DISCUSSIONS as a means of bringing together low-paid employees across Australia in one inclusive discussion forum. In 2007, the focus group program was extended to involve target audiences in all states and territories and online bulletin board discussions were trialled. Mini-group discussions were also introduced into the consultation program to engage INDIGENOUS and NON-ENGLISH SPEAKING Australians from within their communities. The feedback from online bulletin board participants referenced in the Consultation Strategy evaluation following in the 2007 Minimum Wage Review was very positive. The amount and quality of information gathered through this method was found to be highly detailed and added significant value to the established research methodology of focus groups. This finding prompted the Commission to extend its commitment to consult via online bulletin board discussions for its 2008 review. The depth of information uncovered from employer participants using the online bulletin board discussions during the 2008 Minimum Wage Review highlighted the value of developing a more comprehensive understanding of the circumstances of each participant. Following the Consultation Strategy evaluation it was agreed to trial an in-depth interview approach with employers for the 2009 consultations.

c. What were the main obstacles encountered? How were they overcome? No more than 500 words
The Australian Fair Pay Commission’s consultation objective is a key tenet of its decision-making process. Acceptance of the Commission’s wage-setting decision is related to the extent to which key stakeholders feel the program engages them. The program depends on the cooperation and trust of a diverse range of stakeholders. Many of the peak organisation stakeholders were accustomed to the adversarial wage-setting process of the Commission’s predecessor. So, as a new organisation implementing a new wage-setting process within a tight time-frame, it was critical that key stakeholders were quickly engaged and involved in the process. The Secretariat aims for the consultation program to be realised in an approach that is flexible, iterative, and focused on the diverse needs of the Commission and its all of its stakeholders, including the peak organisations that represent the interests of Australians affected by wage-setting decisions. Each year, the Commission meets on multiple occasions with national organisation stakeholders (including governments, peak employer, employee and community organisations) to discuss issues related to minimum wage-setting. Opportunities are provided for each organisation to discuss their written submission to the Commission’s wage review. The Commission also visits the stakeholder organisations in each state and territory at least once each year as part of its annual review. As a national agency, the Commission needs to monitor employment conditions across all states and territories, as well as variations between regional and metropolitan areas. It must understand how these variations impact on local labour markets. Therefore, geographic coverage was a key challenge where key audiences were dispersed across Australia. The use of online bulletin board discussions has facilitated the inclusion of a great diversity of views in a cost-effective and timely manner for the Commission. Furthermore, as participants are able to contribute at any time that is convenient to them, this method overcomes the recruitment challenges highlighted in the Consultation Strategy evaluation following the 2006 Minimum Wage Review. The online consultation method also provides opportunities for people to contribute who feel intimidated or uncomfortable voicing their opinions in a focus group setting – particularly younger participants. Although this challenge was partly addressed through omitting the public meeting approach in the 2007 Minimum Wage Review (and subsequent reviews), younger low-paid and unemployed participants have proved to be less comfortable sharing their experiences and speaking up for their interests in front of others. Furthermore, the freedom of anonymity afforded to bulletin board participants has uncovered some interesting views and experiences not revealed in focus group discussions. INVOLVEMENT OF COMMISSIONERS is an integral part of the social research program. Opportunities for Commissioners and Secretariat staff to observe focus groups and meet participants to answer any questions that arise in the discussion are very important, although scheduling can be problematic. Observation of online bulletin boards has been particularly convenient for Commissioners and Secretariat staff, as it allows them to ask the moderator to explore specific areas of interest as they arise and they can log-in from anywhere throughout the duration of the discussion.

d. What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
The Secretariat’s Communications and Consultation Branch led the development of the consultation model with the input and approval of the Commission and internal stakeholders. Specialist social research agencies have been engaged to conduct and report on the public consultation research. These consultations have included focus groups, online bulletin boards, mini-groups and (most recently) in-depth interviews. The Secretariat has worked collaboratively with external providers to identify and trial creative solutions, such as online bulletin boards to deliver quality outcomes for the Commission. Engaging specialised external social research providers on behalf of the Secretariat was identified as the most efficient and cost-effective method to achieve results in a time-critical environment. For the Commission’s 2009 Minimum Wage Review, the Communications and Consultation Branch are conducting a proportion of the in-depth interviews with employer participants. Secretariat staff also assist with project-management related duties, including coordination of participant recruitment across all states and territories, arranging appropriate facilities for focus groups, input into development of discussion guides for all audiences and research methodologies, and arranging transcripts of recordings and editing reports. The most significant costs associated with the conduct of social research, as part of the Commission’s consultation program, include consulting fees of specialist social researchers, recruitment of participants by accredited research recruitment providers, thank-you payments to participants to cover out-of-pocket expenses, focus group venue hire and transcription of recordings. The timing and geographical dispersion of focus groups has prohibited Commissioner involvement in all discussions in the program, however, direct costs for the Secretariat associated with Commissioners and staff attending focus groups include travel and accommodation for the focus groups that are observed by the Commission. Where possible, the focus groups are scheduled to co-inside with state and territory stakeholder organisation meetings to limit travel and accommodation costs. The online bulletin boards are hosted by specialist external providers to further ensure anonymity for participants, and to ensure that the most up-to-date software is used. Commissioners and Secretariat staff observe the discussions and participate as appropriate during normal working hours. Public consultation research reports, which feature mixed methods including online bulletin boards, are published as part of the Commission’s research series in hard copy, and are also available to the public via the Commission’s website. These reports are sent to University libraries and key organisation stakeholders.

Is the initiative sustainable and transferable?
The Secretariat will continue to use online discussions and focus groups and has now extended the consultation process to include a ‘case study’ approach involving IN-DEPTH INTERVIEWS WITH EMPLOYERS. This in-depth research provides greater context to employment decisions and business operations and allows the researcher to explore how adjustments to minimum wages impact on individual businesses. The 2008 stakeholder survey involving peak organisations endorsed the evolution of the consultation process. Acceptance levels of the process are now very high, with strong endorsement of the overall architecture as well as of the specific methods. Compared to the 2007 study, key stakeholder organisations are generally more positive, reflecting refinement of the Commission’s minimum wage review process, as well as improved communication and consultation practices. In 2008, researchers observed more prominent positive feedback and several stakeholders themselves also highlighted this changed perception. Along with higher levels of endorsement for the process, there was a feeling of greater stakeholder engagement and more certainty about how to engage with the process. “We have built up a relationship through working with them. It was evident from the outset that there was an openness to this [from the Commission and Secretariat].” “I think the process is working very well, I can’t fault it.” “Processes have been good [compared to the past]…given the circumstances of their establishment and the speed of establishment [in early days].” “There is the right balance between procedure, fairness and informality.” The 2009 Minimum Wage Review will be the Commission’s last – the Commission’s function will transition to Fair Work Australia (January 2010). Further evaluation and stakeholder research will be undertaken by the Secretariat before the wage-setting role (which includes consultation, submissions and research) moves to Fair Work Australia. Information gathered through public consultation research is accessible to any organisation or individual via the Commission’s website. Furthermore, as part of the evolution of the consultation model and smooth transition to Fair Work Australia, the Secretariat has invited a number of government agencies to observe the focus groups and online discussion forums conducted as part of the Commission’s 2009 Minimum Wage Review. This initiative will ensure the best use is made of all information to come out of the social research program. The Commission’s covering note to the 2007 public consultation report summarises the value of the social research conducted as part of its information-gathering process and it’\s relevance beyond use by the Commission’s: It is a substantive piece of social research capturing a wide range of views on labour, employment options and the minimum wage. The report highlights some matters, which, while outside the legislative remit of the Commission, provide background to the views expressed and hopefully provide a deeper understanding of the social and economic circumstances of those people affected by the Commission’s decisions. As these aspects provide a useful context to the Commission’s work, and in the interests of adding to a better understanding of minimum wage issues in Australia, this report has been adopted and released by the Australian Fair Pay Commission.

What are the impact of your initiative and the lessons learned?
The Secretariat was one of the first federal agencies in Australia to use online bulletin boards as a qualitative social research method, and other agencies are now adopting this method to meet their consultation objectives. The Secretariat remains committed to promoting the use of mixed methodologies – and in particular the use of emerging online methods and their value for of engaging difficult to reach audiences – through a number of presentations at marketing and communications conferences for the public sector across Australia. The Secretariat has found that online bulletin boards provide a range of benefits that complement established research methodologies. While the bulletin boards do require that participants have internet access for the duration of the research, more and more people – including low paid and unemployed Australians have access to the internet and are keen to contribute to online discussions. The online medium allows for a variety of participants to share their views and engage in thoughtful exchanges benefiting from the freedom that anonymity creates and without the barrier of location. Most participants indicate that they enjoy participating in the online discussion. An example of feedback received from a participant in the Commission’s 2007 Minimum Wage Review consultation: “Thanks for the opportunity to voice my opinions and share my experiences! I'm not one to usually give my opinion but the questions were stimulating and it was great to read other peoples' answers. Definitely better than some boring survey so I tried to give as much info as possible. Loved it.” This online research method has also proved to be especially useful for small business employers who are traditionally time-poor. Because the discussions run over several days, several people from one business can participate. The discussion is often very thoughtful and deliberate. Many employer participants have indicated that the process had been beneficial to them as they have shared experiences with other participants and have learned more about business practices or been prompted to look at something differently. In response to the significant challenges in developing a consultation strategy that ensures the Commission remains up-to-date and informed about the impact of its decisions, current wage issues, research and future priorities, the Secretariat has implemented an approach of careful and considered trial and evaluation. The consultation model has evolved with the changing needs of stakeholders and the Commission with each Minimum Wage Review.


Institution Name:		Australian Fair Pay Commission Secretariat
Institution Type:		Government Agency
Contact Person:		Jennifer Taylor
Title:		Director
Telephone/ Fax:		+61 3 8621 8200
Institution's / Project's Website:		+61 3 9620 4868
E-mail:		jennifer.taylor@fairpay.gov.au
Address:		Level 6, 595 Collins Street
Postal Code:		3000
City:		Melbourne
State/Province:		Victoria
Country:		Australia

The Problem

Solution and Key Benefits

Actors and Stakeholders

(a) Strategies

(b) Implementation

(c) Overcoming Obstacles

(d) Use of Resources

Sustainability and Transferability

Lessons Learned

Contact Information