Submission to the Post Implementation Review of the Fair Work Act 2009
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Submission to the Post Implementation Review of the Fair Work Act 2009 17 February 2012 Volume 1 About the ACTU The Australian Council of Trade Unions is the nation’s peak body for organised labour, representing Australian workers and their families. ACTU Level 6, 365 Queen Street Melbourne VIC 3000 www.actu.org.au Authorised by Jeff Lawrence, Secretary The Working Australia Papers The Working Australia Papers are an initiative of the ACTU to give working people a stronger voice about social and economic policy. Although low and middle income Australians ultimately bear the costs of poor policy decisions made in relation to tax, infrastructure, retirement incomes, welfare and services, their voice is too often absent from national debates about these issues. Working Australia Paper 2/2012 ACTU D No. 6/2012 Contents Volume 1 — SUBMISSION Introduction .............................................................................................................................. 1 The proper approach to the review ............................................................................................ 1 The legislative and policy context ............................................................................................... 2 The ACTU submission .................................................................................................................. 4 The evolution of federal workplace relations laws.................................................................... 6 Promoting productivity and economic growth ........................................................................ 11 Employment .............................................................................................................................. 11 Employment by State ............................................................................................................ 17 Employment by industry ....................................................................................................... 19 Unemployment by age .......................................................................................................... 21 Long-term unemployment .................................................................................................... 22 Wages ........................................................................................................................................ 24 Average wages growth ......................................................................................................... 24 Productivity growth .................................................................................................................. 26 Real unit labour costs ............................................................................................................ 29 Factor shares of income ............................................................................................................ 30 Industrial disputes ..................................................................................................................... 31 Impact on award-dependent businesses .................................................................................. 33 Conclusion ................................................................................................................................. 34 Ensuring a guaranteed safety net ............................................................................................ 35 Wages ........................................................................................................................................ 35 Wage-related entitlements ....................................................................................................... 36 Individual Flexibility Arrangements .......................................................................................... 37 Insecure Work ........................................................................................................................... 38 Conclusion ................................................................................................................................. 39 An emphasis on collective bargaining ..................................................................................... 40 Good faith bargaining ........................................................................................................... 40 Restrictions on agreement parties ........................................................................................ 40 Restrictions on agreement content ....................................................................................... 42 Restrictions on taking protected industrial action ................................................................ 43 Conclusion ................................................................................................................................. 43 Enabling representation at work ............................................................................................. 44 Resolving grievances and disputes .......................................................................................... 45 Award-dependent enterprises .................................................................................................. 45 Agreement-covered workplaces ............................................................................................... 45 Resolving bargaining disputes ................................................................................................... 46 Conclusion ................................................................................................................................. 47 Protection against unfair treatment ........................................................................................ 48 Unfair dismissal ......................................................................................................................... 48 Unlawful dismissal .................................................................................................................... 49 Sham contracting ...................................................................................................................... 50 Conclusion ................................................................................................................................. 51 The institutional framework ................................................................................................... 52 Fair Work Australia ................................................................................................................... 52 Fair Work Ombudsman ............................................................................................................. 52 Fair Work Divisions of the courts .............................................................................................. 52 Conclusion ................................................................................................................................. 53 Impact on women workers ..................................................................................................... 54 Balancing work and family responsibilities ............................................................................... 54 Protection from discrimination ................................................................................................. 54 Equal remuneration .................................................................................................................. 55 Low pay and insecure work ...................................................................................................... 55 Conclusion ................................................................................................................................. 56 Appendix 1 – Further reforms ................................................................................................. 57 Appendix 2 — Technical Issues................................................................................................ 59 Glossary .................................................................................................................................. 67 Volume 2 — SUPPORTING MATERIAL 1. ACTU, The Fair Work Act: Two Years On (2011) 2. ACTU, Submission to Senate EEWR Committee Inquiry into the Fair Work Bill 2008 (2009) 3. ACTU, ‘Working by Numbers: Separating Rhetoric and Reality on Australia’s Productivity’ (2011) 4. ACTU, Submission to Productivity Commission Inquiry into the Economic Structure and Performance of the Australian Retail Industry (2011) 5. ACTU, Response to Draft Productivity Commission Report on the Economic Structure and Performance of the Australian Retail Industry (2011) Introduction The ACTU is the peak trade union body in Australia, representing almost 2 million workers. When the Fair Work Act commenced on 1 July 2009 it was the culmination of the long campaign for all Australians to repeal Work Choices and restore rights at work. Restoring rights at work meant ending AWA individual contracts; restoring unfair dismissal protections; strengthening the safety net; providing good faith bargaining; and improving the independent umpire’s role in resolving disputes. Australians unions play a pivotal role in improving the living standards of millions of Australians and their families. Industrial legislation is a critical component of this work — it is a key to ensuring that