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Winter 2005

The Devil in the Detail

Here are some details in John Howard’s industrial relations changes that his tax payer-funded campaign does not tell you.

REDUCING THE POWERS OF THE INDEPENDENT UMPIRE TO SETTLE WORKPLACE DISPUTES AND SET MINIMUM WORK STANDARDS

The Government wants to weaken the powers of the independent umpire in the workplace - the Industrial Relations Commission.

over 100 years Australia's state and federal Industrial Relations Commissions have acted as the independent umpire at work, settling industrial disputes and setting decent minimum standards.

ustrial relations commissions have provided an independent forum where working people can take disputes with their employer if things go wrong. This has been the Australian way.

Industrial Relations Commission is a unique Australian invention. It is one of the reasons why Australian workplaces are safer and fairer than those in other countries, like the USA.

has protected living standards and the Australian way of life.

Howard Government wants, as far as possible, to get rid of all State Industrial Relations Commissions and to take powers away from the Australian Industrial Relations Commission.

Government doesn't want the Federal Commission to set minimum wages, to help fix industrial disputes, or to consider any new award conditions.

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

ABOLISHING UNFAIR DISMISSAL LAWS

The Government wants to get rid of the right to redundancy pay and protection from unfair dismissals for 90% of the Australian workforce, between three and a half and four million workers.

As well as allowing most workers to be sacked on the spot with no redundancy payments, this will create two classes of workers - the protected and the unprotected (the majority).

Many large employers will break up their businesses into units, so each unit is under 100 employees so they can take further advantage of the new laws. If you work in an organization or business with up to 100 employees and are sacked unfairly, or not even given a reason for being sacked, you will have no job protection under federal law.

John Howard says that there is still protection against "unlawful" dismissal. But this is highly misleading. Under the new laws, an employer can still, for example, sack a pregnant woman for being pregnant as long as they don't say that is the reason.

People who work for organizations and businesses with up to 100 employees shouldn't be treated as second-class citizens. Unions are committed to protecting job security for all working people.

INDIVIDUAL CONTRACTS THAT UNDERCUT EXISTING RIGHTS AND CONDITIONS

Currently 5 million Australian workers and their families rely on awards or collective enterprise agreements to protect their pay, conditions and living standards.

Unions believe all workers should have the right to choose not to sign an individual contract and to bargain collectively with their workmates for wages and conditions.

The Howard Government wants to change this by introducing workplace laws to force more workers on to individual contracts.

AWAs are being brought in at the same time as the existing "no disadvantage test" is being abolished and the unfair dismissal laws are being removed.

AWAs will need to meet only 5 minimum conditions.

AWAs (individual contracts) are specifically designed to make it easier for employers to undercut award and collective agreement conditions.

AWAs allow employers to single out employees to force new working conditions on to them one at a time.

AWAs create a downwards wages spiral.

AWA individual contracts are often used to give employers more control over your working hours, to reduce overtime pay, and to make more people casual.

The Howard Government has spent millions of dollars pushing AWAs since 1996 and they now cover around 400,000 Australians.

Now the Government wants to make it even easier to force you on to an AWA individual contract:

These changes will make it harder for working people to negotiate with their employer collectively, forcing individual workers to accept lower wages and conditions.

More AWA individual contracts will mean less family friendly working hours and lower standards of living.

Employers can legally lock workers out and refuse to pay them for months if they don't sign AWAs.

AWAs don't need to be approved before they come into operation. AWAs can override collective workplace agreements at any time.

AWAs are not assessed against awards at all, so they can undercut awards even more than is possible now.

REDUCING MINIMUM WAGES

For more than 100 years minimum wages in Australia have been set, reviewed and increased by an independent body, the Australian Industrial Relations Commission. This system ensures that low paid workers and their families are not left behind.

The Government wants to change the way minimum wages are set to make them lower.

The Howard Government has opposed every minimum wage increase since 1996. The minimum wage is currently $484 a week ($12.70 per hour) but if the Howard Government had its way minimum wage workers would be at least $50 a week - or $2,600 a year - worse off than they are now.

The Howard Government's IR Minister has said the minimum wage should be reduced by about $70 a week, and it wants to change the way minimum wages are set by taking away the powers of the independent Australian Industrial Relations Commission to set fair minimum wages.

Under the Government's plans minimum wages would probably be set by a "panel of experts", people specially chosen by the Government to make sure wages stay low.

When asked to guarantee that minimum wages would not be lower under a new system, the Howard Government Minister, Kevin Andrews said:

"I am not in the business of giving guarantees for or against anything." (Kevin Andrews, ABC Radio, 12 April 2005)

This will reduce the living standards for many people who are only just keeping their head above water. Unions don't want this USA-style system. In the USA minimum wages are just US$5.15 an hour and haven't increased for 8 years, leaving many working families living below the poverty line.

REMOVING EMPLOYMENT CONDITIONS FROM AWARDS

The Government wants to remove basic employment conditions from awards.

Though many people don't realise it, almost all working Australians currently enjoy the protection of a strong award system. Most of the pay and conditions we take for granted are guaranteed in State or Federal awards.

The important rights protected by awards include:

• wage rates based on skill levels
• overtime pay
• weekend or night work rates
• work related allowances
• maternity and parental leave
• annual leave
• sick leave

Around 1.6 million Australian working people rely only on awards to protect all their pay and conditions. Millions of others employed on agreements rely on awards to underpin their basic rights and conditions.

The Government has said it wants to cut a number of important conditions from awards: conditions like skill based pay structures, bonuses and allowances. Business is urging the Government to go much further and get rid of awards altogether.

The Howard Government also wants to totally abolish State awards, which cover over 80% of HACSU members.

Without award conditions, many working people will be forced to negotiate with their employer for even the most basic rights and conditions they currently take for granted.

There will only be 5 minimum conditions. Our most basic rights will be taken away, including such things as overtime pay, standard hours of work, allowances, weekend and shift work rates of pay.

EXCLUDING UNIONS FROM WORKPLACES

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

The Government is already trying to pass laws that make it harder for unions to visit workplaces. It also wants to make it harder for unions to represent workers in negotiations with their employer.

The Government wants to:

• Make unions give written notice of their reasons for workplace visits 24 hours prior (even where there has been an accident), and let managers restrict where your union meets with you.
• Encourage employers to monitor your discussions with your union, and have the right to know whether you are in a union or not.
• Stop unions from visiting a workplace more than once every 6 months (if they talk about recruiting while they are there).
• Make it harder for working people to legally take industrial action, like strikes, while in negotiation with their employer. These new laws will make it harder to stand up for your rights when you really need to.
• Increase penalties for unions and workers.

Having a union-negotiated agreement helps workers maintain their living standards. On average union members earn $125 more a week than workers who are not in unions.

Union membership is the best way to make sure that your workplace is safe, that you receive your full entitlements and that you have advice and support when you need it.

As well as representing their members, unions also strive for better wages and conditions for all working people through awards and collective agreements.

The Howard Government's plans are not just an attack on unions - they will affect everyone.