Senator IAN CAMPBELL (10:36 AM) —I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard .

Leave granted.

The speech read as follows—

This bill makes a number of amendments to the Affirmative Action (Equal Employment Opportunity for Women) Act 1986.

The bill is a logical, common sense and practical continuation of the government's ongoing policy commitments in this area.

The amendments are aimed at achieving genuine equality of opportunity for women in Australian workplaces. The bill seeks to bridge the gap which currently exists between the provision of equal opportunities for women in the workplace, and the ability and inclination of business managers to provide those opportunities. The bill will make the act more business-friendly and flexible, ensuring that organisations covered by the act are not subject to outdated and overly complex paperwork and costs associated with compliance. It will also assist in meeting the government's commitment to cut paperwork for business.

The Affirmative Action Act has now been in force for 13 years and, last year, its role and performance was reviewed by an independent committee. The committee unanimously found that the act had delivered substantial gains to women and desirable outcomes for business, and was still fulfilling a valued and valuable role. However, it was also found that amendments to the act could make it more efficient and more effective.

The committee also recommended the establishment of an Advisory Board under the existing provisions of the act. I was particularly pleased to endorse this recommendation, with the Advisory Board first meeting on 19 August 1999. I am confident that the Board will provide a proficient and valuable link between the Agency, the organisations covered by the act, and me. This is an important aspect of ensuring that the act is responsive to business, and to women, and is at its most efficient and effective.

The focus of this bill is to modernise the existing features of the Affirmative Action Act to allow it to more clearly reflect today's workplace procedures and practices. The bill endeavours to deliver genuine flexibility to employers in how they achieve equal employment opportunity for women in their workplaces, acknowledging that the previous `one size fits all' approach to equal opportunity for women in the workplace does not serve the best interests of women, business or the Australian economy more generally.

This bill proposes a fair and contemporary law which complements and positively reinforces the major objectives of our revitalised workplace relations system. It puts workers and businesses first, not institutions; it is relevant to modern Australia; it builds on the common interests which exist in the workplace; and it provides for fair and productive outcomes reflecting our national economic and social goals.

Most importantly, in achieving these outcomes, the bill retains and promotes the importance of equal opportunity for women in the workplace. Employers who currently have obligations under the Affirmative Action Act will be the same employers who have obligations under the amended Affirma tive Action Act. The bill will simply change the nature of some of those obligations, making it more conducive for employers to provide genuine equal opportunity for women in the workplace.

The name of the Act, Agency and Director

The bill clarifies the true intention of the Act. Unfortunately the term `affirmative action' is too often misconstrued as pertaining to `reverse' or `positive' discrimination based on preferential treatment and quotas. `Affirmative action' has been a misnomer, because the substance of the existing act has required `equal opportunity' in employment, rather than `affirmative action'. This is an appropriate direction for the act, and one which the government will continue, with both the substantive and nomenclature changes achieved by the bill.

This bill therefore proposes a change in name to the act, Agency and the Director's title to dispel, once and for all, any misunderstandings about the essential aims of the legislation. The bill seeks to rename the act the `Equal Opportunity for Women in the Workplace Act', the Agency will be known as the `Equal Opportunity for Women in the Workplace Agency' and the Director will be the `Director of Equal Opportunity in the Workplace'.

Inserting an objects clause

To support the name changes, the bill also introduces an objects clause. This reflects contemporary legislative practice and further elucidates the genuine objectives of the act.

The new objects clause states that the principal objects of the act are to: promote the principle that employment for women should be dealt with on the basis of merit; promote, amongst employers, the elimination of discrimination against, and the provision of equal opportunity for, women in relation to employment matters; and to foster workplace consultation between employers and employees on issues concerning equal opportunity for women in relation to employment. In short, this bill aims to facilitate equal opportunity for women in the workplace, recognise the importance of merit, and promote dialogue between employers and employees on matters relating to equal opportunity for women in the workplace.

The objects clause will provide guidance to employers and the Agency about the interpretation and administration of the act. With respect to consultation, this will mean that employers will be encouraged to ensure adequate dialogue between employers and employees on matters relating to the act. The Agency will take into account this objective in the full range of its activities including its educative and promotional activities.

The insertion of this objects clause will not detract from the Agency's existing role with respect to the promotion within the wider community of the understanding, acceptance and public discussion of issues relating to equal opportunity for women in the workplace.

Definition of `employment matters'

The definition of `employment matters' is broadened by the bill. In addition to those matters already covered by the act, such as selection processes and conditions of service, the bill adds `work organisation' and `arrangements for dealing with sex-based harassment'. These matters were identified by the review committee as being of importance to women in achieving equal opportunity in the workplace. These changes will bring the act up-to-date with respect to matters relevant to the workplace of today. This list of employment matters is not intended to be an exhaustive account of matters relevant to the act. Indeed, the revised definition of an equal opportunity program means a program designed to remove all forms of discrimination against women in relation to employment matters at any particular workplace. This means that direct, indirect and systemic discrimination can be considered within the context of this act.

Equal opportunity for women in the workplace programs

Under the existing provisions, employers are required to develop affirmative action programs based on a prescriptive and complex `8 step' process.

The revised approach, as introduced by this bill, is simpler and more straightforward. Its aims are outcomes oriented, rather than being process-driven, allowing and encouraging employers and employees to put in place programs that are tailored to the needs of their particular workplaces.

The new workplace programs will require the preparation of a workplace profile. This profile will be based upon data relating to the occupational and gender characteristics of the workplace. In collecting data, employers can choose to use standard ABS categories, or employers can use any other categories relevant to them. Some organisations have their own very specific classification system, while others use industry or occupational standards.

This provision supports our objectives of greater flexibility and the alleviation of unnecessary processes and paperwork.

Once an employer has a workplace profile, the employer will then be required to undertake an analysis to identify issues that the employer would need to address to achieve equal opportunity for women in the employer's workplace.

Once the analysis is undertaken, the program must then provide for actions to be taken in relation to priority issues, and for an evaluation of the effectiveness of these actions.

The new emphasis is squarely on actions and achievements. It provides opportunities for employ ers and workers to be genuinely innovative, and encourages real and appropriate measures to be put in place and gains to be made.

The new program requirements also encourage organisations to take into account the broader business context, putting equal employment opportunity firmly in the context of good business practice, and integrating it into more general management strategies.

This also means that employers will not have to duplicate activities that are undertaken for another purpose, but that also meet requirements under this act. In particular this relates to the collection of data for the purpose of the workplace profile.

Reporting requirements

To reflect the revised program requirements, the bill also introduces new reporting requirements.

As with the existing provisions, employers will still be required to submit reports to the Agency concerning their programs. However, the new reports will afford significantly more flexibility to reporting organisations, focusing less on processes and more on outcomes. The integrity of the reporting system will be maintained with organisations required to analyse, describe and evaluate the actions taken in the previous reporting period, and also to provide a forward-looking plan for the next reporting period. Workplace profiles are to be submitted with respect to each reporting period.

Reporting periods

The new reporting cycles will be more firmly aligned with strategic workforce planning.

The bill introduces a two-year cycle, as opposed to the existing one-year cycle. This will significantly reduce the paperwork burden on employers and will again soundly place the emphasis on quality program development and genuine achievement of equal opportunity for women in the workplace. During the review process, a number of organisations sought longer reporting cycles to enable equal opportunity for women in the workplace to be embedded in corporate planning. One year was considered too short a timeframe to put in place actions aimed at achieving real and sustained change.

A two-year cycle will enable equal opportunity for women in the workplace to better sit beside strategic human resource development issues. Savings realised by employers with the reduced reporting burden will allow resources to be redirected towards measurable progress.

Waiving of reporting requirements

The bill introduces a revised waiving arrangement.

The Agency will have the power to waive reporting requirements, for a specified period, where it is satisfied that the employer has taken all reasonably practicable measures to address the issues relating to employment matters that affect equal opportunity for women in their workplace.

The phrase `reasonably practicable' is a commonly used expression in Commonwealth statutes. This test contains an objective standard that is balanced by the capacity to consider the particular facts of an employer's situation. The test is objective in that the Agency will consider whether the measures taken are of the type that would be taken by a reasonable employer when addressing issues that affect equal opportunity for women in the workplace. The reference to `practicable' also provides for consideration of the actual constraints and limits that face the employer in deciding what measures will be taken.

To meet the requirements for waiver, employers must satisfy the Agency that they have taken all reasonably practicable measures to address each identified issue relating to each defined employment matter. If the organisation has no issues concerning a particular employment matter (for example, an all-female workplace that has had no experience of sex-based harassment), then no actions in that area need be taken. Of course there may also be cases where, by addressing one issue, other related issues are subsequently resolved.

It is likely that the revised waiving criteria could mean that certain smaller companies, who do provide equal opportunity for women in their workplaces, are not necessarily disadvantaged simply because they cannot meet the standards of sophisticated equal opportunity for women in the workplace programs put in place by their larger, and wealthier, counterparts. There will be more scope for genuine effort and innovation to be rewarded, and more room for genuine constraints to be recognised.

The new Equal Opportunity for Women in the Workplace Advisory Board has been asked to examine this provision in more detail, and to develop guidelines on how it should administered. However, it is anticipated that this revision will enable a wider range of organisations to be rewarded for their efforts.

There is also provision for the Agency to waive the reporting requirement, for a specified period, on its own motion. Regardless of whether an organisation is waived by applying to the Agency or on the own motion the Agency, they will still have to meet the same standard—that is that they have taken all reasonably practicable measures to address issues affecting equal opportunity for women in the workplace .

Agency may request information

To ensure the probity of reports under this act, the bill also introduces a provision allowing the Agency to request the employer to provide informa tion concerning any aspect of the employer's workplace program or the preparation of the report, or the report itself.

This counters any implication that the revised reporting requirements in any way diminish employers' responsibilities with respect to equal opportunity for women in the workplace. The Agency can, at any point in the reporting cycle, seek verification of information supplied to the Agency about the workplace program or report.

This provision also assists employers. Previously the Agency could only seek information once non-compliance had been determined. The proposed amendments allow the Agency to ask for information at any time, thereby assisting employers to comply with the act at an early stage, and ensuring that they are not subject to the retained sanctions associated with non-compliance.

Mr Speaker, the introduction of the bill implements the legislative aspects of the government's response to the independent committee's report on the regulatory review of the Affirmative Action Act as well as undertakings made by the government in `More Jobs, Better Pay'.

The committee's report followed an extensive consultation process, including the seeking of submissions (of which over 180 were received), the convening of roundtable discussions in each State and Territory capital city, and the survey of all organisations covered by the act. I thank all those who constructively participated in these consultations.

The bill has had significant input from the Board, and been the subject of valuable comments from the Office of the Status of Women.

The proposed changes to the Affirmative Action Act support the government's, and Australia's, commitment to equal employment opportunity for women by ensuring that the act is fully and effectively meeting its objectives.

I commend the bill to the Senate.

Debate (on motion by Senator Quirke) adjourned.