Australian Council of Trade Unions Is the Peak Body Representing Almost 2 Million Working Australians
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Inquiry into the Workplace Relations Framework ACTU Submission to the Productivity Commission This submission uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The HILDA Project was initiated and is funded by the Australian Government Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and is managed by the Melbourne Institute of Applied Economic and Social Research (MIAESR). The findings and views reported in this report, however, are those of the authors and should not be attributed to either FaHCSIA or the MIAESR. i Table Contents Table Contents ..................................................................................................... ii Index to Tables .................................................................................................. viii Index to Figures ................................................................................................... ix Appendices .......................................................................................................... xi Abbreviations ...................................................................................................... xii Key points and observations .............................................................................. 1 Chapter 1 First Principles: The Purpose of Industrial Relations Regulation. ............................................ 13 Chapter 2 The International Context ................................................................................. 19 Chapter 3 Competition Policy ............................................................................................. 26 Chapter 4 Labour Market Trends in the 21st Century: Australia and beyond. ............... 30 ii Chapter 5 Measuring the Economic Impacts of Industrial Relations Regulation: (A) Macroeconomic effects. .............................................................................. 76 Chapter 6 Measuring the Economic Impacts of Industrial Relations Regulation: (B) Compliance Costs ........................................................................................ 83 Chapter 7 Measuring the Economic Impacts of Industrial Relations Regulation: ............. (C) Gaps and Avoidance Incentives. ................................................................ 87 Chapter 8 The Safety Net: (1) Minimum Wages ........................................................................................ 112 Chapter 9 The Safety Net: (2A) The Award System. .................................................................................. 142 Chapter 10 The Safety Net: (2B) Penalty Rates .......................................................................................... 149 Chapter 11 The Safety Net: (3) National Employment Standards. ............................................................ 168 Chapter 12 The Safety Net: (4) Resolving Disputes ......................................................... 191 iii Chapter 13 The Safety Net: (5) Flexibility beyond and within. .................................................................... 193 Chapter 14 Collective Bargaining: (1) Making an agreement. .............................................................................. 210 Chapter 15 Collective Bargaining: (2) Barriers to fair, efficient and effective agreement making in the Public Sector ............................................................................................................... 246 Chapter 16 Collective Bargaining: (3) While an Agreement is in Operation ........................................................ 271 Chapter 17 Individual Arrangements ................................................................................. 275 Chapter 18 Employment Protections (1) Unfair Dismissal......................................................................................... 301 Chapter 19 Employment Protections: (2) Unlawful Termination and General Protections ...................................... 318 Chapter 20 Employment Protections: (3) Workplace Bullying .................................................................................... 327 iv Chapter 21 Accessing Workplaces .................................................................................... 335 Chapter 22 Institutional Performance. .............................................................................. 347 v About the ACTU The Australian Council of Trade Unions is the peak body representing almost 2 million working Australians. The ACTU and its affiliated unions have a long and proud history of representing workers’ industrial and legal rights and advocating for improvements to legislation to protect these rights. vi Index to Tables Table 1: Features of the Conciliation & Arbitration and Fair Work Systems ................................... 15 Table 2: Employee preferring more hours and number of extra hours, Australia, 2013 ............... 37 Table 3: Employees by employment category, Australia 2001 & 2013 (%) .................................... 39 Table 4: Entitlement to flexible start and finish times, Australia 2013 (%) .................................... 44 Table 5: Reported overskilling in employment (%)............................................................................ 62 Table 6: Employment in selected industries, Australia 2000 to 2014 ........................................... 70 Table 7: Male full-time employment to population ratios, skilled and unskilled by selected age groups .................................................................................................................................................. 74 Table 8: Indicia and the multi-factor test .......................................................................................... 91 Table 9: Minimum wage bite in selected years since 1990 .......................................................... 118 Table 10: Method of setting pay for employees based on employer reported data, per cent of employees ......................................................................................................................................... 145 Table 11: Penalty Rate Scenarios for Nurses – Example A............................................................ 166 Table 12: Penalty Rate Scenarios for Nurses – Example B ........................................................... 166 Table 13: Features of Long Service Leave Schemes ...................................................................... 176 Table 14: Portable, industry-based Long Service Leave Schemes ................................................ 177 Table 15: Collective Agreements Lodged and Approved ................................................................ 202 Table 16: Collective Agreements Not Approved .............................................................................. 203 Table 17: Proportion of agreements not approved ......................................................................... 203 Table 18: Agreements not approved v. applications withdrawn .................................................... 203 Table 19: Reasons for approval applications not being approved 2009/10 to 2011/12 .......... 204 Table 20: The FW Act and Coverage of the State, Territory and Local Public Sector ................... 254 Table 21: Method of Setting Pay by Gender ................................................................................... 297 Table 22: Method of Setting Pay by Occupation ............................................................................. 297 Table 23: Method of Setting Pay by Occupation ............................................................................. 299 Table 24: Injured Workers’ protection from involuntary termination ............................................ 325 Table 25: Breakdown of applications made to the FW Commission 2013/14 ............................ 351 vii Index to Figures Figure 1: Growth in employment (left) and hours worked (right), Australia 2000 to 2015 ........... 33 Figure 2: Underemployment and unemployment rates, Australia 1994 to 2013 .......................... 35 Figure 3: Employees preferring more hours of work, by sex and hours status, Australia 2001 to 2013 .................................................................................................................................................... 36 Figure 4: Deficit in hours for employees preferring more hours of work, by sex and hours status, Australia 2001 to 2013 ...................................................................................................................... 38 Figure 5: Growth rates in employee numbers, by employee category, Australia 2001 to 2011 ... 40 Figure 6: Growth rates in employees numbers, by employee category and sex, Australia 2001 to 2011 .................................................................................................................................................... 41 Figure 7: Average weekly hours, by hours, employee category and sex, Australia 2001 to 2011 42 Figure 8: Various attributes of jobs, by employee category, Australia 2001 to 2013 .................... 45 Figure 9: Wages and inflation, Australia 1950 to 2014 ................................................................... 49 Figure 10: Inter-quartile dispersion in real wages, full-time employees, Australia 1982 to 2012 51 Figure 11:Growth in real wages by quintile, full-time employees, Australia 1981 to 2012........... 52 Figure