THE WORKPLACE RELATIONS LANDSCAPE IS CHANGING

SO, WHAT CAN WE EXPECT?

With a new Government 10 years in opposition, there are plenty of changes Labor wants to implement. Chris Delaney, ASIAL’s Workplace Relations Advisor discusses some of what Labor is planning.

One of the first actions of the newly elected Labor government was to write to the President of the Fair Work Commission (FWC) in support of a 5.1% increase in the minimum wage in line with inflation.

On 15th of June, the Fair Work Commission’s (FWC) expert panel announced a 5.2% ($40) rise to the national minimum wage, while workers covered by award rates will get an increase of at least 4.6%, after taking into account the effects of the sharp inflationary rise on low-paid workers and accepting the need for moderation.

The National Minimum Wage will be $812.60 per week or $21.38 per hour.

The Panel decided to increase modern award minimum wages by 4.6 per cent.

Modern award minimum wage rates above $869.60 per week will receive a 4.6 per cent adjustment, wage rates below $869.60 per week will be adjusted by $40 per week.

The increase for all Modern Awards covering employees in the security industry will commence from the first full pay period on or after 1 July 2022.

WHAT’S NEXT? Industrial Reform

When it comes to reforming the system the first casualty will likely be the Australian Building and Construction Commission. Next, the Registered Organisations Commission will probably be absorbed back into the Fair Work Commission. Both have been a thorn in the side of the Union movement for some time. We believe that the Road Safety Remuneration Tribunal (RSRT) will be revived. Interestingly for the Cash in Transit Industry this may mean a resurrection of the Inquiry which was nearing completion when the RSRT was abolished by the Coalition Government.

Labor has also hinted at reforms of the FWC, claiming there have been too many Coalition appointed members and the need for greater balance.

Respect@Work

The Federal Government will implement all 55 recommendations of the Respect@ Work Report, ensuring that employers have a duty under the Commonwealth Sex Discrimination Act 1984 to take reasonable steps to eliminate sexual harassment.

It will also extend the National Employment Standards allowing 10 days’ paid family and domestic violence leave per year to eligible employees.

Industrial Manslaughter Legislation

With few exceptions, most states and territories have enacted industrial manslaughter laws. Labor has pledged to create harmonising legislation federally, thereby covering all Australian workplaces. Employers can be found guilty of industrial manslaughter and be fined and/or jailed if they negligently cause the death of a worker.

Labour Hire

Labour Hire Licensing Schemes will be national and similar to those currently operating in Queensland and Victoria. There appears to be no intention to “merge” or consolidate State and Federal schemes. Harmonisation is the preferred process.

Casual Employees and Insecure Work

Labor has promised to amend the definition of “casual employment” by legislating an objective test to determine whether a worker will be classified as a casual employee to make it clear and unambiguous. It also plans to overturn the Coalition’s recent changes to the FW Act and the High Court’s decision in Workpac v Rossato.

There is no detail on how the ALP will ensure secure work through the FWC, however it is likely that legislation will be introduced to give power to the FWC to make decisions that give effect to secure work.

Sham Contracting and Wage Theft

The Government will consult with unions, states and territories, and employer groups to ensure federal wage theft laws will not override existing state and territory laws in operation. It will also toughen independent contracting definitions and laws to eliminate sham contracting.

Portable Leave Entitlements

Labor promises to consult with state and territory governments, unions and industry groups, regarding the possible development of portable entitlement schemes for annual leave, sick leave and long service leave for particular industries.

It is unlikely that these changes would be introduced in the first term, although it would be highly likely that they would get support from the Greens. Incidentally, Victoria is already running a scheme for Casuals and Contractors in certain industries to access paid sick leave – watch this space!

Enterprise Bargaining

While not published IR Policy, Anthony Albanese has promised that if elected, he will convene an “employment summit” to “bring employers and unions together to collaborate on secure work and to ensure enterprise bargaining works effectively”.

Labor has given support for the following enterprise bargaining policies: • Giving the FWC broader powers to arbitrate disputes arising in the course of enterprise bargaining; • Preventing the unilateral termination of collective agreements if employee entitlements will be reduced; • Improving access to collective bargaining, potentially through multi-employer bargaining; and • Terminating all pre-Fair Work Act 2009 (Cth) Collective

Workplace Agreements at a nominated date. Parental Leave

Labor’s aims to give 26 weeks of paid parental leave at fullpay. While the Greens have also committed to establishing a 26-week paid parental leave package to be shared between parents.

WHAT YOU SHOULD DO

Some of the proposed changes will be introduced quickly. The Government has a majority in the lower house and will likely get support from the Greens in the Senate. Many of the changes will increase costs for employers already coping with pressures from rising inflation and staff shortages.

EMPLOYERS SHOULD:

• Keep abreast of changes that affect their businesses, particularly the cost of supplying services to clients; • Continually seek advice on changes, especially where you engage large numbers of casual workers; • Review all sub-contracting arrangements to identify exposure to claims of sham arrangements; • Take positive steps to introduce policies that ensure compliance with changes in legislation; • Review work practices and payroll to identify areas that need attention and change; • Consider renegotiation or termination of

Certified Agreements that have passed their nominal expiry date; and • Review all employment contracts to ensure clarity and compliance.

We are entering a period where the industrial relations landscape is in for significant change.

This article serves as an overview of some of the key issues identified for reform by the new Federal Government. Some changes may be introduced quickly, others may take more time and new issues may arise as important changes.

Employers need to ensure they have access to relevant information in an accurate and timely way.

About the Author:

Chris Delaney, ASIAL Industrial Relations Advisor.

Chris Delaney is a highly regarded employee relations professional with over 40 years’ experience in industrial relations and human resources.

Note: The information provided above is for convenient reference only. ASIAL and Chris Delaney & Associates Pty Ltd provide this information on the basis that it is not intended to be relied upon in any cases, as the circumstances in each matter are specific. Accordingly, we provide this information for general reference only, but we advise you to take no action without prior reference to a workplace relations specialist.