What does an industry-wide award establish?

An industry-wide award establishes minimum pay and working conditions for employees within a specific industry. These awards are a form of collective agreement that sets out the baseline terms of employment, ensuring that all workers in the industry receive fair wages and have access to certain rights and benefits. This mechanism is vital in maintaining equity among workers by standardizing conditions across various companies within the same industry.

By laying down these minimum requirements, the awards help to protect workers from exploitation and to promote fair competition among employers, who must adhere to the same standards. This approach contrasts with individual contracts or company-specific policies, which can vary significantly from one employer to another and may lead to discrepancies in pay and working conditions irrespective of the industry's standards.