Workplace Relations Minister Kevin Andrews said that, under the transitional provisions of the new Work Choices legislation, the AIRC would still fix minimum wages for a "residual" group of employees operating within federal awards outside the AFPC's jurisdiction.
Mr Andrews noted that the AIRC's decision today stated it regarded it as undesirable to pre-empt the AFPC's role on setting wages before it had sat.
The AFPC is expected to make its first determinations in the spring of next year.
In its decision, the AIRC said that, in the circumstances, it would be undesirable for it to pre-empt the AFPC's role in setting wages.
"We do not think it is desirable that the commission should hear and determine claims for increases in minimum wages for transitional employees b
Mr Andrews urged state governments to take note of the AIRC's decision and resist union claims for further wage cases before state industrial relations commissions.
"The only sensible and realistic course of action is for the state commissions to also defer any such cases," he said.
ACTU president Sharan Burrow said the AIRC's decision today was a huge setback for employees.
"This is a government that says we don't want a fair minimum wage set for working people (and) we're quite happy to impose an 18-month wage freeze on working families," she told ABC radio.
"Despite the fact that (working people) are struggling to keep their heads above water and we'll now sit around and wait for the AFPC."
