The manufacturing industry presently accounts for 5.6% of Australia’s economy. The industry is responsible for producing a wide range of products including food, beverages, tobacco, textiles, chemicals, machinery, and furniture and as such covers a large number of Australian workers. Although there is some variance, the majority of employees in these professions are covered under the manufacturing award. Despite a recent slowdown, industry prospects are looking up. The latest quarterly survey of industrial trends found that while COVID has heavily impacted the industry, many firms are able to see past current challenges and expect a return to normality in the near-term. The industry is facing challenges, the most significant of which is managing talent. This begins with an accurate and reliable payroll that balances labour expenses with profits.
What is the Manufacturing Award?
The Manufacturing and Associated Industries and Occupations Award 2010 [MA000010] outlines the award for this industry. It covers all employers and employees throughout Australia who are involved in any manufacturing-related work. Examples of these occupations include engineering and manufacturing tradespersons and apprentices, laboratory technicians and testers, and locksmiths. Classifications and minimum award rates for an adult employee can be found below. However, there are exceptions that need to be taken into account. Using the manufacturing award is not always as easy as it appears.
Manually calculating manufacturing award rates
Many business owners and managers manually compute manufacturing award rates through the P.A.C.T. Pay and Conditions Tool. Using this tool, you can look up the award rates for your employees based on their occupation. You can also use the leave and shift calculators. The more staff you have, the more time consuming and difficult this becomes. Payroll errors are a frequent occurrence for businesses who choose to manually calculate their employee’s entitlements, and these mistakes can be costly. For example, inaccurate calculations can result in compliance penalties, retroactive tax payments, and labour hours spent rectifying mistakes flagged by employees.
Automatically calculating manufacturing award rates
With many Australian business owners in manufacturing industries unable to manually calculate the increasingly complex award entitlements, automatic award interpretation software has become the new industry standard.
Within Tanda, our award engine automatically adds compliant pay rates to your rosters and timesheets, including base rates, overtime, allowances, and higher duties. All managed awards, including the manufacturing award, have built-in base rates that sync with payroll and update when Fair Work mandates change. This means that award rates are updated in accordance with all future Fair Work changes and birthdate rollovers for employees, keeping businesses compliant without constantly monitoring Fair Work’s site for updates to complex rule sets.
To put our award engine to the test sign up for a free trial of the system.