Industrial relations (IR) is one of the central issues in the forthcoming Federal election, but this also means disinformation is rife on the main political parties’ IR intentions. If the Australian Labor Party (ALP) wins, will the trade unions really be marching into local workplaces as shown in recent TV adverts? If the Coalition manages to turn around the current polls and win, will people be forced on to Australian Workplace Agreements (AWAs) and paid less than they were two years ago?
To help clarify the issues, we have set out below a summary of the main principles of the Coalition and ALP industrial relations policies, so, hopefully, you can make up your own mind about how industrial relations in Australia will look in the future.
Coalition |
Australian Labor Party |
| Where is the policy detail? |
The laws in force now.
Minister Joe Hockey has also announced the Coalition will unveil an updated IR policy before the election (this has not been released as yet).
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The ALP policy framework is set out in ‘Forward with Fairness’. The ALP has also released a separate implementation plan for this policy. |
| Minimum Standards |
The Australian Fair Pay and Conditions Standard (AFPCS) apply to all employees.
The AFPCS covers basic rates of pay and casual loadings, maximum ordinary hours of work, annual leave, personal leave, parental leave and related entitlements.
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Ten National Employment Standards (NESs) will apply to all employees.
The NESs are: hours of work; parental leave; flexible work for parents; annual leave; personal and compassionate leave; community service leave; public holidays; information in the workplace; notice of termination and redundancy; and long service leave.
The NESs will be in force from 1 January 2010.
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| Individual Agreements |
Australian Workplace Agreements (AWAs) will be retained.
All AWAs (and collective agreements) for employees who earn less than $75,000 are subject to the fairness test.
If the fairness test applies, the employee must receive ‘fair compensation’ if the AWA removes or modifies protected award conditions (e.g. penalty rates, leave loadings, allowances, overtime rates).
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AWAs can run their full course (up to five years). Existing AWAs can only be terminated while in operation if both parties agree.
Employers will not be able to enter into new AWAs, but if the employer has previously used AWAs, the employer can enter into Individual Transitional Employment Agreements (ITEA), which will apply up to 31 December 2009.
An ITEA must not disadvantage the employee against a collective agreement, or if there is no such agreement, an award or the AFPCS.
Employees earning over $100,000 will be free to agree their own pay and conditions under an individual agreement, without reference to an award.
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| Collective Agreements |
Employee collective agreements and union collective agreements are possible.
(AWAs take precedence over collective agreements).
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Collective agreements are at the heart of the ALP IR policy.
Non-union collective agreements will be available.
Each collective agreement must include a flexibility clause, allowing for individual agreement between an individual employee and the employer on certain issues.
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| Awards |
The Award Review Taskforce is to rationalise and simplify the award system.
To date, little progress has been made.
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The current award system will be simplified and modernised over the next two years.
New awards will contain 10 basic award conditions, and industry specific information regarding the NESs.
New awards will be in force from 1 January 2010.
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| Unfair Dismissal |
| If the employer has less than 100 employees, or if the employee is dismissed for genuine operational reasons, the employee cannot claim unfair dismissal. |
If the employer has less than 15 employees: an employee can claim unfair dismissal if employed for at least 12 months.
If the employer has 15+ employees: an employee can claim unfair dismissal if employed for at least six months.
Claims of unfair dismissal must be brought within seven days of termination.
A Fair Dismissal Code will be introduced. If this Code is followed, a dismissal should be considered fair.
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| Right of Entry |
| Strict limits on union powers to enter workplaces. |
Existing right of entry laws will be maintained, and only authorised permit holders will be allowed entry.
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| Industrial Action |
Industrial action only permitted during bargaining for a new collective agreement, after a secret ballot.
(Industrial action is not permitted for the duration of an existing AWA).
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Industrial action will only permitted during bargaining for a collective enterprise agreement, and if approved by employees in a secret ballot.
Current provisions regarding secondary boycotts in the Trade Practices Act, and allowing access to the Courts to prevent unprotected industrial action, will be retained.
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| Building Industry |
The Australian Building and Construction Commission (ABCC) will be maintained. |
The ABCC will be maintained until 31 January 2010. Following that date the responsibilities of the ABCC will be transferred to a specialist division of Fair Work Australia.
(Fair Work Australia would be a new one stop shop for all IR issues, including an inspectorate, hearing complaints and provision of information).
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