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Study of Australian employers finds lack of understanding regarding workplace relations reforms

04 January 2006

The most comprehensive employer study into WorkChoices has found that Australian employers are concerned about their level of understanding of the changes to Australia’s workplace relations system and that only 3% of employers intend to make immediate workplace changes.

The study conducted by Australian Business Limited interviewed over 1,500 employers throughout Australia who employ a total of over 100,000 people.

The Study found the following:

z 21% of businesses felt they did not feel informed about the reforms; 63% felt they partially understood the changes and only 13% felt they thoroughly understood the changes.

z 7% of businesses said the changes would have a major impact on their business, 28% some impact, 28% minor impact and 28% no impact and 8% did not know.

z 50% of businesses said it would not change how they managed their employees. Whereas only 3% of businesses said they intended to make immediate changes to their workplace, 17% said they expected to make changes within a year and a further 23% were unsure if they would make any changes.

z The benefits of WorkChoices were seen by employers to be (more than one choice allowed):

- the ability to tailor the arrangements to suit the workplace (62%)

- more inclined to employ people because of changes to unfair dismissal laws (40%)

- more flexible working arrangements (eg rostering) (31%)

z The key areas where employers intend to seek advice on WorkChoices were - industry associations such as Australian Business Limited, solicitors and accountants.

Mr Bethwaite said the challenge before the Government was to explain WorkChoices in a practical way.

“What we see from these findings is that employers are not sure on how the new system will apply to their workplace and are making a clear decision to move cautiously.

“TV advertisements have not worked, what we need is practical, solution focused materials which allow employers to apply WorkChoices to their workplace.

“About 85% of employers are saying they do not know the details and the challenge before the Government is to develop the regulations in a way that make it relatively simple for employers to implement.

“Only 20% of businesses said they expected to make changes within the next year with the vast majority of businesses saying they will not make changes or unsure of any changes they will make.

“This sends a very clear message to the Government that the implementation of WorkChoices is as important as its passage through the Parliament. If the final regulations are seen as too complicated employers will not actively make changes.

“If there is not a significant take-up of the changes then it would make a potential rollback of the reforms by a future Government easier.

Mr Bethwaite said only 3% of businesses surveyed intended to make immediate changes.

“The trade union movement have done themselves and their members a disservice by claiming “the sky will fall in”.

“Indeed 40% of businesses surveyed indicated they would be more inclined to employ people because of the changes to unfair dismissal laws. The unfair dismissal regime cost jobs and we will now see smaller businesses active again in the employment market.

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Australian Business Limited has 28,000 members who employ at least 830,000 people.

For further information contact Paul Ritchie on 02 9458 7543 or 0438 670 851

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