(More Jobs, Better Pay) Bill 1999
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SENATE EMPLOYMENT, WORKPLACE RELATIONS, SMALL BUSINESS AND EDUCATION LEGISLATION COMMITTEE Consideration of the Provisions of the Workplace Relations Legislation Amendment (More Jobs, Better Pay) Bill 1999 NOVEMBER 1999 © Commonwealth of Australia 1999 ISSN 1441-9890 This document was produced from camera-ready copy prepared by the secretariat of the Senate Employment, Workplace Relations, Small Business and Education Legislation Committee. The report was printed by the Senate Printing Unit, Parliament House, Canberra. MEMBERS OF THE COMMITTEE Chair Deputy Chair Senator Alan Ferguson (LP) SA Senator Kim Carr (ALP) VIC Members Senator Jacinta Collins (ALP) VIC Senator Jeannie Ferris (LP) SA Senator Andrew Murray (AD) WA Senator Tsebin Tchen (LP) VIC Substitute members Senator Alan Ferguson (LP) SA to substitute for Senator John Tierney (LP) NSW for this inquiry. Senator Andrew Murray (AD) WA to substitute for Senator Natasha Stott Despoja (AD) SA for matters relating to Workplace Relations and Small Business. Substitute members for public hearings Senator Crane to substitute for Senator Ferris on 22 October 1999 and 25 October 1999. Senator Cook to substitute for Senator Carr at the 25 October 1999. Senator Coonan to substitute for Senator Ferris on 26 October 1999. Senator Parer to substitute for Senator Ferris on 27 October 1999. Participating members Senator Eric Abetz (LP) TAS Senator Brian Gibson (LP) TAS Senator Lyn Allison (AD) VIC Senator Brian Harradine (IND) TAS Senator Ron Boswell (NPA) QLD Senator John Hogg (ALP) QLD Senator Bob Brown (AG) TAS Senator Steve Hutchins (ALP) NSW Senator David Brownhill (NPA) NSW Senator Susan Knowles (LP) WA Senator Paul Calvert (LP) TAS Senator Philip Lightfoot (LP) WA Senator George Campbell (ALP) NSW Senator Joseph Ludwig (ALP) QLD Senator Grant Chapman (LP) SA Senator Kate Lundy (ALP) ACT Senator Helen Coonan (LP) NSW Senator Sue Mackay (ALP) TAS Senator Barney Cooney (ALP) VIC Senator Brett Mason (LP) QLD Senator Winston Crane (LP) WA Senator Julian McGauran (NPA) VIC Senator Trish Crossin (ALP) NT Senator Kerry O’Brien (ALP) TAS Senator Rosemary Crowley (ALP) SA Senator Warwick Parer (LP) QLD Senator Alan Eggleston (LP) WA Senator Marise Payne (LP) NSW Senator John Faulkner (ALP) NSW Senator Chris Schacht (ALP) SA Senator Brenda Gibbs (ALP) QLD Senator John Watson (LP) TAS Participating members for the purposes of this inquiry Senator Andrew Bartlett (AD) QLD Senator Natasha Stott Despoja (AD) SA Senator Vicki Bourne (AD) NSW Senator John Woodley (AD) QLD Senator Brian Greig (AD) WA Senator Michael Forshaw (ALP) QLD Senator Meg Lees (AD) SA Senator John Tierney (LP) NSW Senator Aden Ridgeway (AD) NSW Secretariat John Carter David Redway Anne Domitrovic Penny Shakespeare Bevan Kirk Jan Willis Address Phone (02) 6277 3520 S1.61 Fax (02) 6277 5706 Parliament House E-mail [email protected] CANBERRA ACT 2600 Website: www.aph.gov.au/senate/committee/eet_ctte iv TABLE OF CONTENTS MEMBERS OF THE COMMITTEE ............................................................. iii TERMS OF REFERENCE .............................................................................. ix PREFACE .......................................................................................................... xi INTRODUCTION.............................................................................................. 1 THE WORKPLACE RELATIONS LEGISLATION AMENDMENT (MORE JOBS, BETTER PAY) BILL 1999 ................................................................................................ 1 Progress of the Bill ........................................................................................................... 1 Workplace relations reform – the next phase ................................................................... 1 The provisions of the Bill ................................................................................................. 2 The Committee’s inquiry.................................................................................................. 4 CHAPTER 1 ....................................................................................................... 5 OVERVIEW........................................................................................................................5 Australian Workplace Relations in Context ..................................................................... 5 CHAPTER 2 ....................................................................................................... 9 OBJECTS OF THE WORKPLACE RELATIONS ACT 1996...................................... 9 CHAPTER 3 ..................................................................................................... 23 THE IMPACT OF THE WORKPLACE RELATIONS ACT 1996 ............................ 23 Wages, employment, productivity, and industrial disputation levels............................. 23 Job security, unfair dismissals, employee entitlements and conditions ......................... 29 The roles, rights and obligations of employers, employees and their respective organisations...................................................................................................................32 The Australian Industrial Relations Commission, the Office of the Employment Advocate and the Industrial Registrar ............................................................................ 33 Industrial democracy and employee ownership ............................................................. 34 vi CHAPTER 4 ..................................................................................................... 37 SCHEDULE 1 - OBJECT OF THE WORKPLACE RELATIONS ACT ................. 37 Outline of proposed amendments................................................................................... 37 No presumption in favour of the extension of federal regulation................................... 38 Award safety net of basic minimum wages and conditions ........................................... 41 Unprotected industrial action inconsistent with Act ...................................................... 44 Arbitration, compulsory conciliation, voluntary conciliation and mediation................. 45 CHAPTER 5 ..................................................................................................... 47 SCHEDULE 2 - RENAMING AND RESTRUCTURING THE AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION AND REGISTRY .............................. 47 Outline of proposed amendments................................................................................... 47 Change of name for Commission and Registry.............................................................. 49 Simplification of the Commission’s Presidential structure ............................................ 52 Presidential members with legal qualifications.............................................................. 53 Fixed term appointments ................................................................................................ 55 Appointment of acting Commissioners .......................................................................... 57 Annual training program for Commissioners................................................................. 59 User-friendly systems and procedures............................................................................ 59 Harmonising administration of the Commission and Registry ...................................... 60 Harmonising Registry appointments .............................................................................. 62 CHAPTER 6 ..................................................................................................... 63 SCHEDULE 4 – CONCILIATION AND ....................................................................... 63 SCHEDULE 5 – MEDIATION ....................................................................................... 63 Outline of proposed amendments................................................................................... 63 Compulsory and voluntary conciliation ......................................................................... 64 Fees for voluntary conciliation....................................................................................... 68 Mediation........................................................................................................................ 69 CHAPTER 7 ..................................................................................................... 73 SCHEDULE 6 – AWARDS.............................................................................................. 73 Outline of proposed amendments................................................................................... 73 Provisions to regulate the log of claims process............................................................. 73 vii Allowable award matters................................................................................................ 76 Safety net increases linked to award simplification ....................................................... 88 CHAPTER 8 ..................................................................................................... 91 SCHEDULE 7 - TERMINATION OF EMPLOYMENT ............................................. 91 Outline of proposed amendments................................................................................... 91 Constructive dismissal.................................................................................................... 91 Out of time