HISTORY – Harvester judgement
27 May 2009
In 1907, the President of the Commonwealth Court of Conciliation and Arbitration (now known as the Australian Industrial Relations Commission) Sir Justice Higgins was concerned that some Australian workers were paid so little that they could not afford to buy enough food to sustain themselves through their working day. He voiced his concern in response to evidence given during a famous case called the Harvester judgement, which established the first wage fixing system in Australia.
The workers in question were employed by a manufacturer of agricultural machinery based in Melbourne, H.V. McKay (pictured above). McKay was the maker of the Sunshine Harvester, which is how the case came to be known as the 'Harvester Judgement.'
The Harvester Judgement set a minimum wage for unskilled labourers of 2 pounds, 2 shillings per week. Justice Higgins set the minimum weekly wage by establishing a cost of living - the amount an average worker paid for food, shelter and clothing.
The judgement was designed to ensure that a worker could keep his wife and children healthy and comfortable. It did not cover women workers as it was assumed that either their father or their husband would support them.
This was the first time an industrial tribunal established appropriate wage levels for workers, rather than let employees and their employers negotiate between themselves.
Justice Higgins outlined civilised habits, frugal comforts, decent shelter, partitioned rooms, fresh air, water to wash in, enough wholesome food, and provision for 'rainy days as essential for a decent standard of living.
The decision made in the Harvester judgement applied to more than 1000 men at the company and covered a wide range of job classifications.
Wage boards and arbitration tribunals adopted the standard all over the country and as a result many Australian workers received a pay rise.
For more detailed information, including a copy of the original judgement, visit the archives of Sir Richard Kirby