Review of Industrial Relation Laws Ignites Debate
Friday 23 January 2015 @ 11.42 a.m. | Industrial Law | Legal Research
The Abbott Government has announced a sweeping review of the Australian industrial relations system. Productivity Commissioner Chief Peter Harris has promised that the review will be the broadest review of IR laws in a generation. The findings of this review are expected to form the basis of a new workplace relations policy for the Federal Coalition.
The IR Review
The review of Australia's workplace laws will examine the effect of the minimum wage on employment, how penalty rates are set and what economic effect the loadings have on business and employees. Enterprise bargaining, individual agreements between employers and employees, unfair dismissal, anti-bullying laws and public sector employment issues will also be examined.
Five issue papers have been released that set out the key areas the inquiry will put under the microscope. The release of the paper has caused a great deal of consternation and debate about workplace reform and the revival of WorkChoices. However, employment Minister Eric Abetz has pledged that the results of the review will not be legislated upon before the next Federal election.
The paper states that the inquiry is not "intended to maximise the benefits to any particular group" and that the commission will consider the social and economic aspects of the workplace system. However, a key point of interest is that the paper notes Australia has a high minimum wage rate relative to median earnings when compared to other OECD countries. The current minimum wage in Australia is about $33,000 a year, or $16.87 an hour. Further, the paper notes that on penalty rates, "there are polarised views about the appropriateness of weekend penalty rates in some sectors".
Union Response
Unions are vowing to revive their WorkChoices campaign as a result of the issue papers suggesting changes to minimum wage, penalty rates, unfair dismissal laws and the role of unions in collective bargaining.
The Australian Council of Trade Unions (ACTU) has warned that the report will be central theme in the current Queensland election campaign. ACTU secretary Ged Kearny assures that he will be highlighting to the people of Queensland that the review will target their wages, workplace conditions as well as their workplace rights. He stresses that the current Government agenda is a concerted attack on the living standards of working Australians.
Business Response
Businesses are in favour of lowering the current penalty rates but not abolishing them. Council of Small Business Chief Peter Strong supports paying workers time and half over the weekend, and penalties for working "above and beyond the call of duty". However, he claims that higher penalty rates were deterring employers from putting on more workers, especially young people. Describing the social benefits of employing young people, Mr Strong insists that the review should aim to get the balance right when it came to penalty rates.
Australian Industry Group, Steve Smith, emphasises that there really needs to be a full analysis of workplace relations to see what sorts of changes need to be made to give not only employers but also employees the flexibility that 21st century workplaces need.
The final Commission’s report is currently due in November 2015.
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