Fair Work Australia: Challenges in developing a national industrial relations system

1. Fair Work Australia:Challenges in developing a national industrial relations system Bob HorstmanActing Executive Director DOCEP – Labour Relations Presentation to the Industrial Relations Society of Western Australia 7th May 2008

2. Introduction • The WA Government’s industrial relations policy is designed to promote: • Fairer workplaces • More flexible workplaces • More productive workplaces • Focus on vulnerable employees and small businesses.

3. Proposal for a national industrial relations system “A Rudd Labor Government will rely upon all of the Constitutional powers available to it in government to legislate industrial relations laws. Labor will work cooperatively with the States to achieve national industrial relations laws for the private sector. This will be achieved either by State Governments referring powers for private sector industrial relations or other forms of cooperation and harmonisation.” - Forward with Fairness (page six)

4. A critical economic reform for Australia’s economic future. To give sole traders, partnerships and companies a uniform industrial relations system. End costs and confusion for business of dealing with separate industrial relations systems. Fair to working people, flexible for business and which promote productivity and economic growth. Commonwealth rationale for a national system

5. Current arrangement between federal and state industrial relations systems is both legally complex and arduous – confusing for both employees and employers. Confusion about coverage. A need to overhaul the current award/agreement framework. A need for greater productivity in light of the current economic and labour market situation. Why does WA need a national industrial relations system?

6. Fair and simple safety net - 10 National Employment Standards (NES) - Modern awards. Promotion of collective bargaining - Abolition of AWAs (ITEAs until 31/12/2009). - Means of promoting flexibility. - Good faith bargaining for collective agreements. Award modernisation - 4000+ awards and 105000 classifications. What should a national system look like?

7. Unfair dismissal - Protection extended to more employees than Work Choices allowed. - Unfair dismissal code. Union rights - Right of entry. - Freedom of association. One stop shop (Fair Work Australia) - Role. - Structure. What should a national system look like?

8. George Williams paper - Working Together: Inquiry into Options for a New National Industrial Relations System. ‘Optimum model’– allows for states to participate in a national industrial relations system via text-based referral or uniform legislation. How should a national industrial relations system be achieved?

9. Inter-government agreement. New ministerial council. Mechanisms for state participation. Future amendments to national laws. National industrial relations commission or tribunal. Compliance arrangements. Judicial supervision. How should a national industrial relations system be achieved?

10. Reconciling the different industrial relations systems. Satisfying the stakeholders. Protecting Western Australian interests. Impact on vulnerable businesses. Impact on vulnerable workers. Challenges to a national industrial relations system

11. Governance arrangements Content of the major Bill Continued role for State structures Issues of concern to Western Australia

12. Commonwealth has reiterated its desire to work cooperatively with the states to create a genuinely national workplace relations system. OSH and workers’ compensation. The Western Australian Government has been in extensive consultation with the Commonwealth and other state governments. State Government is working hard to create a fairer system of industrial relations. 16th May 2008 - Senior Officers meeting. 23rd May 2008 - WRMC meeting. Progress report