The Rudd Government's Forward with Fairness policy statement envisages an enhanced role for awards that will be simplified and "modernised". While there is no denying that award regulation is complicated and burdensome for business, the modernisation process proposed has potential to leave business confused and cynical.
The Australian Industrial Relations Commission has responsibility for identifying priority awards by mid year, modernising those awards by year's end and "overwhelmingly" completing the task of modernising the remaining 2,410 federal awards and notional agreements preserving state awards (NAPSAs) by 1 January 2010.
The Minister for Employment and Workplace Relations, the Hon. Julia Gillard's request to the AIRC commencing the process, requires modern awards that are simple to understand, easy to apply and reduce the regulatory burden on business. Along with legislated employment standards, modern awards must contain a fair minimum safety net of enforceable terms and conditions. They must be economically sustainable, promote flexible modern work practices and the efficient and productive performance of work. The request also talks about reducing the number of awards, avoiding the overlap between awards and avoiding discrimination.
The creation of modern awards is not intended to extend award coverage to classes of employees, such as managerial employees, who have been traditionally award free. Yet this limitation does not preclude extension of modern award coverage to new industries or new occupations where the work performed is of a similar nature to work historically regulated by awards.
If that does not sound sufficiently contradictory or difficult, bear in mind that modern awards must cater for the needs of the low paid, they must not disadvantage employees and they must not increase costs for employers.
In the words of President Giudice to the Australian Mines and Metals Conference on 2 April 2008; "no matter how one approaches it, the task is a significant one."
The challenge increases by adding a flexibility clause to every modern award; a clause promised to deliver opportunities that "enable an employer and an individual employee to agree on arrangements to meet the genuine individual needs of the employer and the employee".
A model clause proposed to the AIRC by CCI, working at the national level with ACCI, reflects the straightforward approach promoted by the Government to guarantee individual flexibility. The unions, however, take a different stance with the starting point being to incorporate into a modern award existing facilitation clauses with individual flexibility allowed only in certain very restricted circumstances and with many limitations. ACTU Secretary, Jeff Lawrence, believes "flexibility can be achieved through bargaining."
In summary, there are undeniable reasons for modernising awards. The structure for modernisation was designed and should have been undertaken by the previous government. While the challenges are many, CCI will work with the AIRC to draw attention to the needs of business.
If members wish to discuss their concerns about award modernisation or raise questions about the process or the list of priority awards, they should contact Marcia Kuhne at CCI on (08) 9365 7699 or email marcia.kuhne@cciwa.com.
Priority awards for modernisation in 2008 proposed by AIRC:
- Aged Care Industry (excluding nursing)
- Clerical Occupation (with appropriate exclusions)
- Electrical Occupation (other than electricians covered by relevant industry awards)
- Gardening and Sportsground Maintenance Industry
- Higher Education Industry
- Information and Communication Technology (ICT) Industry
- Metal Engineering and Associated Industries
- Poultry Processing Industry
- Rubber, Plastic and Cablemaking Industry
- Technical Services - Engineers and Scientists Occupations (with appropriate exclusions)
- Textile, Clothing and Footwear Industry
By Marcia Kuhne
Manager, CCI Workplace Relations Policy