Update on WorkChoice in Australia!
On the 4th of May (2007), the Australian Government unveiled a stronger safety net for working Australians with the introduction of a Fairness Test that will guarantee that entitlements such as penalty rates and public holiday pay are not traded off without adequate compensation.Since the Australian Government introduced WorkChoices in March 2006, they claim to have created some 276,000 new jobs, with 96 per cent being full time positions. Coupled with unemployment at its lowest in 32 years and supported by the fact that strike actions are at its lowest, and wages continuing to rise, you can only assume all is just peachy.Lets re-cap for a moment the fundamental changes introduced by the new workplace relations system in March 2006:
• fixing Labor’s job destroying unfair dismissal laws;
• creating for the first time a national system of workplace laws;
• simplifying the agreement making process;
• increasing the focus on workplace based arrangements rather than industry wide awards;
• legislating standard employment conditions for the first time;
• strengthening protections against wild cat industrial action by introducing secret ballots and other protections;
• creating a new independent minimum wage-setting body.
So why do we need a stronger safety net for working Australians?
In the main, the fundamental elements of the Government’s workplace reforms were flawless, however there were some components within it that were not. Although there are some faults with the current reforms the Government has committed to re-shaping it rather than turning back.For example, what was originally removed, such as the infamous “job destroying unfair dismissal laws” for small business, will not be replaced. Because of its removal, it apparently has increased flexibility in the workplace, and whilst Australian Workplace agreements are retained, it has also prohibited industry wide pattern bargaining. As a result inflation has been kept under control meaning less pressure on interest rates. It has allowed employees and employers to negotiate flexible workplace arrangements under AWAs (Australian Workplace Agreements). The fear that most Australians had, and was proven to be the case, was the exploitation of unprotected working conditions and penalty rates. Added to the confusion were numerous cases of inadequate compensation for what was traded off. In short, some employees were realizing that it was it going to affect their take home pay. In order to adequately represent and regain the confidence of working Australians WorkChoice needed to inject a degree of “Fairness” into the negotiation.
THE “FAIRNESS TEST” IS LAUNCHED!
What this means is that any employee who is entitled to award conditions and paid less than $75,000 AUD a year will be protected when their agreement is lodged after 7th May (2007).If, however, the award conditions are modified or removed they will be required to receive fair compensation.These protected award conditions are:
* penalty rates, including for working on public holidays and weekends;
* shift and overtime loadings;
* monetary allowances;
* annual leave loadings;
* public holidays;
* rest breaks; and
* incentive-based payments and bonuses.
If you are unaware of how an agreement is issued and adopted, it’s more involved that just drafting, implementing and issuing it from employer to employee.Drafted agreements are required to be submitted for approval with the (now renamed), Workplace Authority. Previously it was the Office of the Employment Advocate. In addition, the Workplace Authority conducts the Fairness Test by reviewing the monetary and non-monetary compensation that is offered to the employee in comparison to what would have been paid under the relevant award. What is now different in the assessment is that it will now take into consideration the employees work obligations in terms of shift and weekend work and even then type of industry, location and on the employer’s side of the equation, the economic circumstances of the employer’s business. For those who are familiar with the old no-disadvantage test there are some similarities, with the employee paid a higher rate of pay for each hour worked in compensation for trading off protected award conditions.
THE MAIN DIFFERENCE
If an agreement does not pass the fairness test, the relevant industrial instrument will apply until an agreement is formed that passes the test. Both the employer and employee have 14 days to make the agreement fair, with the employer expected to make up any back pay.One aspect of the Workplace Relations Act that has been strengthened prohibits any influence by the employer to force an existing employee to agree to remove or vary a protected award condition.This is supported by the backbone of the original Workplace Relations Act that it prohibits an employer forcing employees to accept a workplace agreement, whether individual or collective. The Workplace Authority will not be able to arbitrate an agreement, but they are able to provide a source of information in regards to your rights.However, this is also the place to conduct a Fairness test and provide a pre-lodgement facility to check agreements.Employees will now be able to access independent advice on their workplace agreements which provides them the ability to pre-check their agreements before signing. Plus a new Workplace Ombudsman will provide additional protection for employees, with enhanced powers to investigate employers who fail to meet their obligations under the workplace laws. (The Ombudsman will replace the Office of Workplace Services.)
So how many Australian Workplace Agreements are there?
By the end of this year there will be nearly one million AWAs in operation and more favored as the agreement of choice by key industry sectors such as mining. In conclusion, any safety net established for employees and employers with the aim for a “fair day’s pay for a fair days work” just has to be a positive step. It just has to be fair.
For more information, go to the Prime Minister’s website www.pm.gov.au where you will find more in-depth information and links.
posted by Karl Jansson @ 8:09 AM
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