About: IR News

News and background about industrial relations in Australia.

Sunday, October 23, 2005

Summary of IR changes

The Federal Government wants to take away most of your basic rights at work.

On 1 July 2005 the Federal Government took control of the Senate, giving it a majority in both houses of Parliament.

For the first time since he became Prime Minister, John Howard's government will be able to pass whatever laws it likes without checks or balances. This will continue until at least the next federal election in 2007.

One of the first things it will do with its new Senate power is take away most of your basic rights at work.

The Federal Government plans to:

1. Abolish unfair dismissal protection for workers employed in companies with less than 100 staff

The Government is attacking job security. It wants to:

  • Abolish all unfair dismissal protection for people working in workplaces with less than 100 employees.
  • Change workplace agreements - both individual and collective - so they no longer have to contain minimum award redundancy provisions.
  • Take away the right of all workers in small businesses to get redundancy pay.

This means 99 per cent of private sector employers - around 4 million working people - will be able to sack their workers unfairly, not even giving them a reason for being sacked.

2. Allow employers to put workers on to individual contracts that cut take-home pay and reduce employment conditions to only 5 minimum standards

The Government wants more employees pushed on to its AWA individual contracts to allow employers to:

  • Single out employees, forcing new working conditions on to them one at a time
  • Undermine award and collective agreement conditions
  • Have more control over your working hours and make more people casual
  • Get rid of work rights like weekend, shift and public holiday rates; overtime; redundancy pay; allowances; and casual loadings
  • Only have to provide workers with a minimum hourly rate of pay (currently $12.75), 8 days sick leave, 2 weeks annual leave (+2 weeks can be bought out), unpaid parental leave, and max weekly working hours

Workers who refuse to sign may fear being sacked.

3. Change the way minimum wages are set to make them lower

The Government wants minimum wages in Australia to be lower. The minimum wage is now $484 a week ($12.75 ph).

But the Howard Government has said minimum wages should be at least $50 a week lower than they are now.

The Howard Government wants:

  • To stop the independent umpire - the Industrial Relations Commission - from setting minimum wage rates.
  • Minimum wages to be set by a so-called "Fair Pay Commission" specially chosen by the Government to make sure wages stay low.

This will reduce the living standards for many people who are only just keeping their heads above water.

4. Replace the award safety net with just five minimum conditions

Most of the minimum pay rates and working conditions we take for granted are guaranteed in State or Federal awards, which also underpin workplace agreements.

The Government wants:

  • To take away any requirement for agreements to be consistent with award rights
  • Agreements to only satisfy five minimum conditions, which will be the same for all industries and all jobs. These standards would be a minimum hourly rate of pay (currently $12.75), 8 days sick leave, 2 weeks annual leave (+2 weeks can be bought out), unpaid parental leave and a maximum number of weekly working hours
  • To remove protection for important rights like: limits on when you can be required to work, overtime pay, weekend or night work rates, work related allowances, annual leave loading, casual pay loading

5. Keep unions out of workplaces and reduce the capacity for workers to bargain collectively with their employer

The Government wants to make it harder for unions to protect and represent working people.

The Government wants to:

  • Make it harder for unions to make workplace visits
  • Make it harder for to legally take industrial action, like strikes, when negotiations break down
  • Increase penalties for unions and workers

The Howard Government's plans will affect everyone's right to get help when they need it.

6. Reduce the powers of the independent Industrial Relations Commission

The Industrial Relations Commission is a unique Australian invention. This independent body has provided working people with decent work rights.

The Government wants to weaken the powers of the independent umpire in the workplace - the Industrial Relations Commission, by it from setting minimum wage rates or considering new award conditions. All it wants the Commission to do is fine unions and their members.

Taking away the role of the independent umpire is a recipe for more disputes and lower workplace standards.

Authorised by G Combet ACTU 393 Swanston Street Melbourne 3000

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