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Tuesday, 9 May 2006
Page: 98


Mr Murphy asked the Minister for Employment and Workplace Relations, in writing, on 8 December 2005:

(1)   Will the Workplace Relations Amendment (Work Choices) Bill 2005 lead to many workers accepting individual contracts that (a) offer lower wages and (b) do not deliver a living wage; if so, what new measures will he introduce to help these workers and their families; if not, can he explain why it will not.

(2)   Will the exemption of trading and financial corporations with up to 100 employees from unfair dismissal laws put at risk the legal incentive for them to undertake fair treatment of employees; if, not, why not.

(3)   Will the Workplace Relations Amendment (Work Choices) Bill 2005 significantly disadvantage those employees with little or no bargaining power in the work force; if not, why not.

(4)   Will the Workplace Relations Amendment (Work Choices) Bill 2005 reduce the number of minimum working conditions for employees; if so, how will the rights of the most vulnerable workers be protected; if not, why not.

(5)   Will the new Australian Fair Pay Commission (AFPC) be appointed by the Government; if so, will this jeopardise the objectivity and neutrality established by its predecessor, the Australian Industrial Relations Commission (AIRC); if not, why has the AIRC been replaced by the AFPC.

(6)   Can he explain how the Workplace Relations Amendment (Work Choices) Bill 2005 serves Australia’s (a) social and (b) environmental goals


Mr Andrews (Minister for Employment and Workplace Relations and Minister Assisting the Prime Minister for the Public Service) —The answer to the honourable member’s question is as follows:

(1)   The Workplace Relation Amendment (Work Choices) Act 2005 (the Work Choices Act) will create a workplace relations system that promotes the economic prosperity and welfare of the people of Australia by giving employers and employees the flexibility to negotiate agreements that suit their particular circumstances. Agreement making, whether collective or individual, has consistently delivered better wage outcomes than other industrial instruments. The Government believes that the Work Choices Act will deliver better wage rises to employees because agreement making will be easier. In addition, employees negotiating an agreement cannot be paid less than their relevant Australian Pay and Classification Scale (APCS). APCSs are based on classification pay scales contained in awards as varied to reflect the 2005 Safety Net Review. Rates of pay cannot fall below this level.

(2)   No. All employees, regardless of the size of business they are employed in, continue to have access to unlawful termination provisions. In addition, the Australian Government will provide $5 million for a ‘best practice’ education and training programme on fair and proper employment termination practices to help employers to understand and comply with the termination of employment provisions under the Act.

(3)   No. The Work Choices Act provides specific protections for vulnerable workers in agreement making. All employees will be entitled to appoint a bargaining agent to act on their behalf in agreement making. For collective agreement making, if an employee is concerned about being seen to appoint a bargaining agent, they can do so through the Employment Advocate, and their identity will remain a secret. When employees are provided with ready access to a proposed agreement, the employer must also provide an Office of the Employment Advocate (OEA) information statement. The OEA information will contain information about how to obtain advice from the OEA. The OEA also provides a free service to explain the content of agreements to an employee or potential employee. There are also specific protections for employees under the age of 18 who are negotiating an Australian Workplace Agreement (AWA). An AWA for an employee under the age of 18 cannot be lodged unless it is signed and dated by an appropriate person (such as a parent or guardian) for the purpose of ensuring that person gives consent for the employee to make the AWA. In addition, broader protections for vulnerable workers will be maintained, including protection against discrimination. Specific provisions also relate to persons from a non English speaking background, young people and to contract outworkers in the Victorian textile, clothing and footwear industries. Finally, the Government is significantly expanding the Office of Workplace Services to provide protection and enforcement for the rights of all employees, including vulnerable employee.

(4)   The Work Choices Act will for the first time enshrine in law a set of minimum conditions of employment called the Australian Fair Pay and Conditions Standard (the Standard). No employee who is part of the national system will be able to receive less than the Standard. See also the response to question 3.

(5)   The Australian Fair Pay Commission (Fair Pay Commission) will be appointed by the Governor-General on advice from the Government. The Government does not believe this will jeopardise the objectivity of the Fair Pay Commission. It is standard practice for the Governor-General to make appointments to statutory bodies like the Fair Pay Commission on advice of the Government. Members of the Australian Industrial Relations Commission (AIRC) are and will continue to be appointed in this way. In other words, the Fair Pay Commission will be appointed in the same way as members of the AIRC are appointed. The Fair Pay Commission will operate independently of Ministerial control and be guided in its work by the requirements of the Workplace Relations Act 1996. Decisions of the Fair Pay Commission cannot be overturned. The Fair Pay Commission will be supported by a secretariat that is an independent statutory authority that will operate independently of Ministerial control.

(6)   The Work Choices Act will serve Australia’s social goals by providing a framework for cooperative workplace relations which promotes the economic prosperity and welfare of the people of Australia.