The issues demanding the arbitrators' consideration were not, of course, confined to the basic wage (however termed). This chapter surveys the policies that emerged in other areas.

4.1 Wage differentials

The setting of rates above the basic wage was dominated by four practices. First, the Federal Court's usual approach, in its initial setting of rates, was to add to the basic wage amounts equal to the differences—proportional or absolute—previously established in the market or by wages boards. Second, these amounts were not adjusted thereafter for movements in prices. Third, although there was little attempt to determine independently the ‘value’ of jobs, the Court did, on various grounds, fix amounts modestly above the basic wage for some that had hitherto been regarded as unskilled. This meant that the relevant classification would be awarded a wage that was slotted in between the basic wage and the tradesman's rate. Fourth, whereas the living wage was ‘sacrosanct’, additional payments might be set at lower levels than otherwise if the Court were persuaded that industries needed relief from the burden of labour costs. The cases discussed in this section illustrate these practices.

In the Harvester hearing, Higgins made it clear that he intended not merely to answer ‘yes’ or ‘no’ to the question whether McKay's were paying fair and reasonable wages, but to lay down a scale of rates for the guidance of both McKay's and other applicant employers.