Workplace Relations firmly back on the agenda
The Federal government’s proposed Workplace Relations Amendment (Work Choices) Bill 2005 (Cth), (‘the Bill’), has ignited a flurry of national debate and protest activity as concerns about workers’ rights and entitlements are voiced.
While the government claims it is advocating for simpler, fairer and more flexible terms, widespread conjecture besieges a range of issues, including the move to a unitary system, unfair dismissal exemptions and the role of the Australian Industrial Relations Commission (AIRC).
The key initiatives under scrutiny include:
Nationalising the industrial relations system
Replacing the current state and federal systems with a single national industrial relations system requires the use of the Constitution’s corporation’s power. Victoria’s power in this area is already referred to the Commonwealth but the states intend to challenge the Constitutional validity of the Bill in the High Court of Australia.
The role of the AIRC
The role of the Australian Industrial Relations Commission (AIRC) will no longer comprise the tasks of setting minimum wage levels or approving certified agreements. Wage fixing will be the job of a new regulating body, the Australian Fair Pay Commission (AFPC), while collective agreements will be lodged with the Office of the Employment Advocate.
As the AIRC’s role is downsized, private mediation and arbitration may become more active avenues of dispute resolution on industrial relations matters.
Workplace agreements
The government’s proposed Australian Fair Pay and Conditions Standard sets down four minimum conditions: annual leave, personal leave, parental leave and maximum ordinary working hours. This confined scope for benchmarking is geared towards simplifying the process for workplace agreements. So too is the Employment Advocate’s administration of agreements, which has historically been handled by the AIRC.
This promise of simplified agreement processes and award structures should please most practitioners and their clients.
Unfair dismissal
The most significant reform to unfair dismissal laws is the exemption for businesses with fewer than 100 employees.
Victorian employees prohibited from making an unfair dismissal claim may still take action through other avenues including unlawful termination claims, equal opportunity claims, seeking statutory termination benefits, or bringing an action for breach of contract at common law or an action under trade practices legislation.
Under these terms, the tradition of collective negotiation could, indeed, give way to individual bargaining.
As the debate on workplace relations continues to rage, it is noted that the stated aim of the reforms is to improve productivity, thereby enabling Australia to flex its muscle in an increasingly competitive global marketplace. The question is how to achieve this while maintaining a fair system, particularly where low-income earners or the unemployed are concerned.
Disclaimer:The information in this article is not intended to be a complete statement of the law relating to the issues raised. Accordingly, no person should rely on this information without first obtaining specific advice from Brendan Kelly of our office.
More information
LIV Bookshop: Workchoices Bill & Explanatory Memorandum $66
Useful web links: www.workplace.gov.au
www.dfat.gov.au/facts/workplace_relations.html | 
