All Australian employers.
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Partner
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Murray Kellock
Partner
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Perth
Robert Lilburne
Canberra
Ian Johnson
Author
Kathleen Kelly
The Government has released more details of its industrial relations reforms in a speech made by Julia Gillard to the National Press Club earlier today. While most of this was not new, there were a few surprises.
The reform package outlined by the Minister was broadly consistent with the Government’s Forward with Fairness policy. However, the speech provided further details of the new laws and some new aspects which are outlined below:
- Workplace agreements: The “prohibited content” rules introduced under WorkChoices will be removed. According to the speech, “all matters that properly relate to the work performed and the entitlements of employees in the workplace, as well as their effective representation, will be able to be the subject of bargaining … Agreements will be able to include matters like salary sacrifice arrangements, health insurance, child care and payroll deductions of union dues for union members”.
- Bargaining: Fair Work Australia will have the power to make “good faith bargaining orders” directing parties “to meet, disclose relevant information, consider proposals and respond to them, and refrain from unfair or capricious conduct”. Compulsory arbitration will only be available in exceptional circumstances (where industrial action is threatening health or safety or the economy, or causing significant harm to the parties).
- Protected industrial action: Employers will not be required to withhold a mandatory minimum 4 hours of pay for employees who stop work during protected industrial action. Employers will only be prevented from paying employees for the actual stop work period. If employees take other forms of protected industrial action (such as a partial work ban), employers can choose to tolerate the bans, lock out employees, or issue a “partial work notice” and deduct an amount from the employees’ pay that is proportional to the work not performed. Employers will not be able to lock-out employees unless employees have engaged in industrial action first.
- Multi-employer bargaining: Low-paid workers may be able to bargain on a multi-employer basis. A union or bargaining representative will be able to apply to Fair Work Australia to enter a “low paid stream” and bargain with specified employers. The Minister suggested this form of bargaining could be used by unions to bring both contracting companies and head contractors to the bargaining table at the same time.
- Fair Dismissal Code for Small Businesses: The Fair Dismissal Code will be a “simple and short six paragraph” document which requires an employer to give the employee a warning and provide a reasonable opportunity for the employee to improve. If a small business complies with the Code, the dismissal will be held to be fair.
- Commencement: The rules regarding the new bargaining framework and unfair dismissals will come into force on 1 July 2009. This will be 6 months earlier than the balance of Labor’s substantive legislation.
We will keep you informed of further developments.