Bills Digest No. 45 2002-03
Workplace Relations Amendment (Simplifying
Agreement-making) Bill 2002
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Main Provisions Table
Endnotes
Contact Officer & Copyright Details
Passage History
Workplace Relations Amendment
(Simplifying Agreement-making) Bill 2002
Date Introduced: 26
June 2002
House: House of Representatives
Portfolio: Employment and Workplace
Relations
Commencement:
On
Proclamation
Purpose
To streamline the
processing measures for Australian Workplace Agreements and
Certified Agreements by amending the Workplace Relations Act
1996.
This is the fourth introduction of a Bill that
includes measures designed to streamline the processes of agreement
making.
A version of many proposed industrial relations
reforms over the last three years can be found in the Workplace
Relations Legislation Amendment (More Jobs, Better Pay) Bill
1999 (known as the MOJO Bill) which reflected the policy
commitments of the Government prior to the 1998 election. The MOJO
Bill was introduced on 30 June 1999 and a House-amended version was
passed in the House on 29 September 1999. The then Senate
Employment, Workplace Relations, Small Business and Education
Legislation Committee (the Senate WR Committee) reported on the
Bill on 29 November 1999 (the
MOJO Report). The Bill did not pass in the Senate. The MOJO
Bill, among many other things, contained streamlining processes for
accessing and facilitating the spread of Australian Workplace
Agreements (AWAs) and streamlining processes for making Certified
Agreements (CAs).
The second Bill was the Workplace Relations
Amendment (Australian Workplace Agreements Procedures) Bill
2000 (the AWA Procedures Bill). That Bill was introduced on 28
June 2000 and passed by the House on 5 October 2000. The Senate WR
Committee also
reported on that Bill as part of its report on a package of
Bills in September 2000. The Bill did not pass in the Senate. As
the title suggests, the focus of that Bill was limited to AWAs.
The third Bill, like the MOJO Bill, was an
omnibus Bill entitled the Workplace Relations and Other
Legislation Amendment (Small Business and Other Measures) Bill
2001. It was introduced into the House on 30 August 2001 but
did not progress before Parliament rose for the last federal
election.
The Explanatory Memorandum to the present Bill
states that as a result of consultations certain measures have been
removed from this Bill that were included in the earlier
Bills.(1) For example, additional proposals in the AWA
Procedures Bill included:
-
- removing the requirement that the Employment Advocate refer
AWAs to the Australian Industrial Relations Commission (the
Commission) where there is concern that it does not pass the
no-disadvantage test
-
- providing an even more streamlined process for AWAs with
remuneration rates above $68 000, and
-
- removing the immunity available if industrial action is taken
in support of a claim for an AWA.
These proposals are not included in
this Bill.
Readers are referred to the general discussion
of the history of the provisions and the competing policy
perspectives on industrial relations reforms in the Bills Digest on
the MOJO
Bill. More specific information about similar proposals is
contained in the Bills Digests on the AWA
Procedures Bill and the Workplace
Relations and Other Legislation Amendment (Small Business and Other
Measures) Bill 2001.
Whilst this Bill involves a significant
restructuring of the AWA provisions in particular, the measures can
be traced back in some form to these earlier Bills except for the
provision empowering the Employment Advocate to revoke an AWA and
the broader ability to recover the shortfall in entitlements.
The Government s stated rationale for the
introduction of the Bill is to:
-
- make agreement making easier and more widely accessible
-
- reduce the formality and cost involved in having an agreement
certified, and
-
- prevent unwarranted interferences by third parties in agreement
making. (2)
The Australian Labor Party s general criticism
of this streamlining is that it:
-
- comes at the cost of procedures that are generally designed to
safeguard employees
-
- promotes individual agreements which
- undermine collective agreement making, and
- lead to an inherent imbalance in favour of
employers in the employment relationship, and
-
- is ultimately used to drive down the terms and conditions of
employment. (3)
Further discussion of the specific changes is
included in the section below.
The Bill is arranged into 2 Schedules. The first
contains amendments relating to Australian Workplace Agreements and
the second contains amendments relating to Certified Agreements. A
description of the main types of amendments is followed by a brief
discussion. Proposed provisions that together make up or which
constitute mirror provisions for a particular change are grouped in
subject headings.
It is worth noting that rather than setting out
specific amendments to the existing provisions of the Workplace
Relations Act 1996, Schedule 1 of the Bill repeals the
relevant Divisions and repeats them with changes. Accordingly, many
parts of Schedule 1 are similar to the existing provisions. The
significant changes are described below.
Currently, under Divisions 4 and 5 of Part VID, there is a
two-stage process for approving AWAs (and ancillary
agreements).(4) The first stage is that the Employment
Advocate checks documents and issues a filing receipt. As set out
in section 170VO, these filing requirements state:
- that the AWA must be signed and dated by each of the parties,
and
- the employer must declare that: the AWA meets dispute
resolution and transparency requirements; employees were given an
information statement; and whether the AWA offered the same terms
for comparable employees, and
- the employer has provided any other information that the
Employment Advocate required.
There is a second approval stage where the Employment Advocate
or the Commission can further scrutinize the AWA. At this stage,
under the existing process set out in subsection 170VPA(1), the
additional approval requirements include scrutiny of whether the
employee genuinely consented to making the AWA and whether the
employer acted unfairly or unreasonably in failing to offer the
same terms to all comparable employees.(5) Agreements
cannot actually be signed until 14 days after an existing employee
first receives a copy and 5 days for new employees.
Proposed Divisions 2 and 3 set up a new process
for making and approving AWAs. The employee and employer first sign
the AWA (proposed subsection 170VBA(1)) and the
employee may then withdraw their consent within a cooling off
period as set out in proposed subsection 170VBA
(5). If the application for approval has already been made
and the employee subsequently withdraws their consent within the
cooling off period, the employee must lodge a written notice of
withdrawal of consent within 7 days of notifying the employer
(proposed subsection 170VC(6)). In practical
terms, this means that the agreement can be signed immediately
after the information statement is given to the employee. The
cooling off periods are 5 days for new employees and 14 days for
existing employees (proposed subsection
170VBA(6)). The employer must apply in writing for the
approval of an AWA within 21 days from the signing date
(proposed subsection 170VC(1)). The Employment
Advocate may extend the period for making the application
(proposed subsection 170VC(3)).
Proposed section 170VBA also retains the
obligations that, before the employee signs the AWA, the employer
give the employee a copy of an information statement prepared by
the Employment Advocate and explain the effect of the AWA. The
information statement must include, but is not limited to,
information about the Commonwealth statutory entitlements,
occupational health and safety law, services provided the
Employment Advocate, and the appointment of bargaining agents.
Proposed subsection 170VBD(1) states that an
AWA starts operating on the last of the following dates:
- the signing date, or
- the day specified in the AWA as the starting day, or
- the day a new employee commences.
Under existing section 170VJ, the AWA is taken to have commenced
after approval (the second stage) for existing employees or after
the filing date for new employees.
The Government argues that the proposed scheme for making AWAs
would dispense with time consuming and resource intensive task of
issuing filing receipts.(6) It has also been argued that
it is simpler to have immediate commencement (7) and
that the capacity to withdraw in a cooling off period is an
appropriate safeguard. (8)
The current delay before signing is intended to
allow employees to receive independent advice on the AWA before
they sign it. The proposed commencement presumes compliance and
reverses the current process because the document becomes legally
operative and allows commencement to be effective from the signing
date which is before the Employment Advocate and the Commission can
scrutinise the document for potential disadvantage. It has been
argued that this creates a pressure on the Employment Advocate
because any claims about the agreement would be about signed
agreements already in operation and should therefore be approved to
avoid claims for arrears of wages.(9) It has also been
added that as a general rule, employees will always be in a more
difficult position if they must withdraw from an agreement they
have previously accepted. (10)
Existing paragraphs 170VPB(1)(b) and 170VPA(1)(e) require that
the Employment Advocate be satisfied that employers did not act
unfairly or unreasonably in failing to offer the same terms to all
comparable employees. This is one of the general additional
approval requirements set out for an AWA and variation agreement.
It is worth noting that existing section 170VO(1)(b)(iii) only
requires the employer to declare (rather than explain) whether they
have offered an AWA in the same terms to all comparable
employees.
Under the new one step approval process, the absence of this
particular additional approval requirement potentially broadens the
scope for performance pay.(11) The Minister noted that
this improves flexibility and is in keeping with the concept of
individual agreement-making (12) and referred to the
safeguard that the Employment Advocate can still refer to the
Commission if there is doubt about whether the no disadvantage test
is satisfied. The proposed removal of this requirement has been
criticised because it allows for different pay and conditions among
employees for performing similar work and has the potential to
allow employers to progressively bid down wages and conditions
through the selective application of AWAs to individual
employees.(13)
Under existing Division 3 of Part VID, separate
approvals are required before variation (section 170VL), extension
(subsection 170VH(3)) and termination (section 170VM) can take
effect. At present, variation and termination agreements commence
on the later of the day on which the approval notice is issued or a
day specified in the agreement. Extension agreements must have a
filing receipt issued 21 days before the nominal expiry date and
commence the day after an approval notice is issued for the
extension agreement. These ancillary agreements are currently
subject to the same filing and approval processes noted above.
Proposed Division 5 sets out a
significantly restructured process for extending (new
subdivision A) or varying (new subdivision
B) an AWA. Proposed Division 6 deals
separately with the process for the termination of AWAs. The
proposals now incorporate cooling-off periods.
Extension Agreement process
Similar to the commencement provisions for
making agreements, proposed section 170VE sets up
a process where an extension agreement would take effect on the day
on which the employer and employee sign the agreement, or if they
sign on different days, the later of the days (proposed
subsection 170VE(6)). The cooling off period is 14 days
after signing (proposed subsection 170VE(5)).
Under proposed section 170VEA, the application
process is the same as for making AWAs described above. The
employer must apply in writing for the approval of an extension of
an AWA within 21 days from the signing date (proposed
subsection 170VEA(1)). However, unlike for the making of
AWA, the application period cannot be extended beyond 21 days. If
the application for approval has already been made and the employee
subsequently withdraws their consent within the cooling off period,
the employee must lodge a written notice of withdrawal of consent
within 7 days of notifying the employer (proposed
subsection 170VEA(5)). Proposed subsection
170VEB(1) requires that the Employment Advocate must
approve the extension agreement if made properly and he or she is
satisfied that the employee genuinely consented. Proposed
subsection 170VEB(2) allows the Employee Advocate to
approve an extension when an agreement has not been signed if he or
she is satisfied that it would not disadvantage either party to the
AWA.
Variation agreement process
Proposed sections 170VED-VEK
set out an equivalent process for variation agreements to that set
out for extension agreements with the following differences. Under
proposed section 170VEG, the Employment Advocate
must approve a variation agreement if the AWA as varied:
-
- satisfies the requirements of proposed section
170VBA noted above, and
-
- meets the transparency, openness and dispute resolution content
requirements set out in proposed section 170VBB,
and
-
- passes the no-disadvantage test.(14)
As in the approval process for the making of
agreements under proposed section 170VCB, under
proposed subsection 170VEG(2), the Employment
Advocate again must approve the AWA if a party has taken action or
given information to resolve concerns about whether the AWA meets
the conditions set out in proposed subsection
170VEG(1).
Termination agreements
There are 3 ways an AWA can be terminated:
-
- agreement between the parties
-
- termination in accordance with a procedure set out in the AWA,
and
-
- termination by the Commission
Subdivision B of Division 6 (proposed
sections 170VFA-VFC) which deals with termination
agreements between the parties sets out a similar process to the
processes described above. However, despite the equivalent signing
process, the termination agreement would be required to be approved
by the Employment Advocate before it could come into effect.
Proposed section 170VFE covers
termination by a process set out in the AWA. A party to the AWA may
seek the approval of the Employment Advocate to terminate the AWA
in the manner provided for in the AWA. The other party must be
notified as soon as possible. The application to the Employment
Advocate must be accompanied by the process for termination set out
in the AWA and any information the Employment Advocate requires for
the purpose of performing his or her functions.
Proposed section 170VFA repeats
the Commission termination provisions set out in current
subsections 170VM(3-5).
Proposed section 170WKD makes it explicit that
the Employment Advocate may revoke an approval or refusal of an
AWA, or the extension, variation or termination of agreements. At
present, it is not clear whether the Employment Advocate has this
power. In analysing the present situation, it was found in
Schanka v Employment National (Administration) Pty Ltd
[2001] that the Employment Advocate is unlikely to have such a
power. (15)Moore J found that a withdrawal of an
approval is not an instrument such as a statutory rule, regulation
or by-law, under subsection 33(3) of the Acts Interpretation
Act 1901: On present authority, such an instrument must be of
a legislative character whereas an approval notice issued by the
Employment Advocate appears to be executive in character.
(16) This finding means that the revocation, being
characterised as executive in nature, would not be subject to the
normal rule of statutory interpretation that the power to make
includes the power to revoke .
Proposed section 170VX replaces existing
section 170VX with a detailed table of compensation for the
shortfall in entitlements. Given the new earlier commencement
provisions and the power to revoke agreements noted above, there
are more circumstances in which recovery for a shortfall becomes
available. The employee or their agent, or the Employment Advocate,
would be entitled to recover any shortfall in specified
circumstances where an AWA or related agreement:
- ceases to have effect
- is approved with an employer action or undertakings; or
- was void.(17)
Approval for shortfall is currently limited to new employees.
Note that there is nothing that expressly authorises the Employment
Advocate to carry out these particular additional functions, but
they are consistent with the functions of the Employment Advocate
as set out in section 83BB including providing free legal
representation to a party if he or considers that it would assist
in the enforcement of Part VID.
In the light of the other proposals for commencement on signing
and the revocation power noted above, this proposal seeks to ensure
that employees who cannot take action themselves are not
disadvantaged.(18)
At present, under existing paragraph 170VPB(1)(a), the
Employment Advocate must approve an AWA for which a filing receipt
has been issued if he or she is sure that the AWA passes
the no disadvantage test. Under proposed paragraph 170
VCB(1)(d), the Employment Advocate must approve an AWA if
the AWA passes the no disadvantage test
.(19)
This semantic distinction may be relevant in so far as it may be
interpreted to have the effect of weakening the obligation upon the
Office of the Employment Advocate to exercise its power directly.
In existing section 170VA, sure is defined to mean not having any
doubts . In any case, the Employment Advocate has publicly stated
that we will be checking that all the AWAs pass the no disadvantage
test. (20) Doubts about the process form part of general
criticism that this Bill weakens the application of the no
disadvantage test. The Employment Advocate s fast track
arrangements mean that the Employment Advocate would to some degree
be relying on employers or their consultants to certify that the
agreements pass the no disadvantage test. (21)
Schedule 2 proposes amendments to the Act in the
usual fashion, using specific items to repeal and insert particular
provisions.
Currently, under existing subsection 170LK(2), it is unclear
whether the 14 day consideration period for a certified agreement
must start again every time an employee joins during a
consideration period, ie. whether this falls within the reasonable
steps that an employer must take to give notice of an intention to
make an agreement as required by that subsection. Item
3 inserts proposed subsection 170LK(2)
which allows the employer to make an agreement without restarting
the consideration period of 14 days when new employees commence.
Item 1 inserts proposed paragraphs
170LJ(3)(a) and (aa) which spell out that employers must
take reasonable steps to ensure that an employee joining within the
consideration period has, or has ready access to, the agreement
before the approval is given. Item 7 inserts
proposed paragraphs 170LR (2)(a) and (aa) which
repeat the proposal. Requirements that the terms of the agreement
be explained to all the employees are unchanged.(22)
Currently, subsection 170LK(8) requires that if
a proposed agreement is varied for any reason after notice is
given, the Commission must ensure that the employer give notice of
intention to make and provide access to the agreement, explain the
agreement, and provide employees with an opportunity to confer with
the employee organisation. Item 10 inserts
proposed subsection 170LT(11) which states that
the Commission can forgo these notification and explanation
requirements and certify an agreement if it is satisfied that no
employee suffered detriment as a result of that failure.
The Explanatory Memorandum states that this is
an administrative saving because it eliminates a process which
consumes time and resources for possibly quite minor technical
amendments.(23) It also indicates that the Commission
must still be satisfied that no employee has suffered detriment as
a result of the failure. Nevertheless, arguably, it removes an
automatic procedure through which every variation of an agreement
is assessed and potentially reduces the likelihood of scrutiny.
Although it is not a statutory requirement, it
is currently the Commission s practice to hold formal hearings to
decide whether to certify an agreement.(24) Item
11 inserts proposed section 170LVA. This
new section requires the Commission to certify, extend, vary or
terminate a certified agreement without holding a hearing
unless:
-
- the Commission is not satisfied that it can make a decision
with the information available to it, or
-
- an affected or prescribed party has requested a hearing and it
is satisfied that there are reasonable grounds for doing so.
The following people can request a hearing:
(25)
-
- the employer
-
- a person whose employment will be subject to the agreement
-
- employee organisations that have made an agreement directly
with the employer
-
- employee organisations who have volunteered to be bound by an
agreement between employees and employers, or
-
- a person prescribed by the regulations.
Proposed subsection 170LVA(2)
requires that an application requesting a hearing must be made
within 28 days of the agreement being approved or made.
Item 2 inserts a
proposed subsection 170LJ(3A) which requires an
employer to take reasonable steps, within 7 days of the day of
approval, to inform each person whose employment will be subject to
the agreement that they can request the Commission to hold a
hearing in relation to whether the agreement should be certified no
later than 28 days after the agreement is approved. Items
15, 19, and 22 insert proposed subsections
170MC(4A) and (4B), 170MD(5A) and (5B), and
170MG(5) and (6) which are identical provisions
for the extension, variation and termination days respectively.
The Government argues that a written process
only is sufficient in most cases and the Commission can call a
hearing when satisfied that it is necessary. (26)It also
notes that it is sensible that agreements are only to be tested on
an exceptions basis which saves time away from
workplaces. (27) Contrary to this, employee
organisations argue that it reduces overall scrutiny because it
removes the general obligation that a public hearing always be
held.(28)
Employee organisation consent for 170LK
agreements
Existing paragraphs 170MC(1)(a) and (b),
170MD(1)(a) and (b), and 170MG(1)(a) and (b) deal with who may
extend, vary or terminate a certified agreement respectively. Under
the present system, the employer and an organisation bound by the
certified agreement must both consent in writing to apply to the
Commission for the approval of an extension, variation or
termination of a current certified agreement (subsections 170MC(3),
170MD(3) and 170MG(3)).
Items 13, 17 and 20 insert
proposed paragraphs 170MC(1)(a) and (b),
170MD(1)(a) and (b), and 170MG(1)(a) and
(b). The effect of the proposed provisions would be to
remove employee organisations from this initial approval process
for section 170LK agreements. Section 170LK agreements are
agreements directly between employers and employees. The
Explanatory Memorandum states that the amendments proposed by these
items are intended to remove the entitlement of employee
organisations to prevent the extension [variation/termination] of
section 170LK agreements, while still retaining a role for such
organisations where requested by a member.(29) The
requirement that the Commission must approve the extension,
variation or termination if satisfied that a valid majority of
employees genuinely approve remains unchanged.
Items 14, 18 and 21 insert
proposed subsections 170MC(2A) and (2B), 170MD(2A) and
(2B), and 170MG(2A) and (2B) which
require the Commission to give organisations an opportunity to make
submissions before approving an extension, variation or termination
of a 170LK agreement.(30) Submissions can only be made
by organisations that have at least one member:
-
- whose employment is subject to the agreement, and
-
- whose industrial interests the organisation is entitled to
represent in relation to work that is subject to the agreement,
and
-
- who requested the organisation to make a submission.
The Explanatory Memorandum states that employee
organisations should not be able to veto agreements to which they
are not directly a party and that this would prevent employee
organisations from blocking certified agreements that the majority
of employees support.(31) It also notes that members who
are a party to the agreement can still invite their employee
organisations to make submissions with regard to the agreement.
Arguments against this include that it removes any meaningful right
of employee organisations to be involved on equal terms in
ancillary agreement making with the result that employees will be
less likely to be properly represented in the negotiation
process.
There has already been much commentary on the
industrial relations reforms introduced by the Government since it
came to power.(32)
In relation to the provisions simplifying the
approval of certified agreements in particular, it is interesting
to note that the reduction in formal scrutiny procedures appears to
be contrary to the evidence presented to the Cole Royal Commission.
It has been reported that "Royal commission analysts found 16
agreements certified by the Australian Industrial Relations
Commission contained serious omissions, irregularities and breaches
of the Workplace Relations Act."(33) Additionally,
Waring and Lewer have calculated that over 2000 AWAs have been
certified by the Commission and submit that it is probable that
these AWAs were passed as not contrary to the public interest even
though they did not meet the no disadvantage test.
(34)An example of a case that is not contrary to the
public interest is where making the agreement is part of a
reasonable strategy to deal with a short-term crisis in and assist
with the revival of a single business. (35)
The proposals to introduce cooling off periods
may have the practical effect of increasing the pressure on an
individual to sign an AWA.
(36)The Bill also removes a right of the employee
organisation to consent to an extension, variation or termination
of a section 170LK certified agreement. However, in these few
cases, it could be argued that those employee organisations do not
need employee approval before they can opt to be bound by the
agreement and should not therefore be able to prevent a change to
the certified agreement.
The following table repeats and summarises the
main aspects of the Main Provisions section above:
|
Proposals
|
Status Quo
|
Comments and Pros / Cons
|
|
AUSTRALIAN WORKPLACE
AGREEMENTS
|
|
|
|
Part VID, Div 3
Removes the current filing process and streamlines the
approval process into a one step process.
|
Part VID, Div 4 and 5
Employment Advocate checks documents and issues filing receipt
and then there is a second process where the Employment Advocate or
the Commission (depending on the issues) can further scrutinize the
AWA.
|
+ dispense with time consuming and resource intensive task of
issuing filing receipts. (37)
+ simpler to have immediate commencement (38)
- becomes legally operative and allows signing before even the
Employment Advocate, yet alone the Commission, can check the
document for potential disadvantage
|
|
ss. 170VBA(5)
Agreement can be signed immediately after
information statement is given to employee.
Introduces cooling off periods. 5 days for new
employees and 14 days for existing employees.
Cooling off periods are introduced for the extension, variation
and termination of agreements (Divisions
5&6)
|
ss. 170VPA(1)
Additional approval requirements for making and varying AWAs
mean that agreements cannot be signed until 14 days after existing
employees first receive a copy and 5 days for new employees.
|
The current delay is intended to allow employees to receive
independent advice on the AWA before they sign it.
+ avoid costs and time wasting in delayed
commencement whilst still providing capacity to withdraw in cooling
off period (39)
- pressure the Employment Advocate and give
rise to claims that agreements are already in operation and should
be approved to avoid claims for arrears of wages
(40)
|
|
s. 170VBD
AWA to commence on signing date. The new
commencements without prior approval, set up exceptions-based
conditions where the approvals must be given unless there is a
disadvantage to a party to the agreement.
|
s. 170VJ
Commencement after approval (the second stage) for existing
employees or after filing date for new employees
|
See arguments above.
- employees will always be in a more difficult position if they
must withdraw from an agreement they have previously accepted
(41)
|
|
Removes the additional approval requirements that the Employment
Advocate be satisfied that the employer has not acted unfairly or
unreasonably in failing to offer AWAs on same terms to
comparable employees.
|
Paras. 170 VPB(1)(b) and 170VPA(1)(e)
These provisions require that the Employment Advocate
be satisfied that employers did not act unfairly or unreasonably in
failing to offer the same terms to all comparable employees. Note
that s.170VO(1)(b)(iii) only requires the employer to declare (cf.
explain) whether they have offered an AWA in the same terms to all
comparable employees.
|
Potentially broadens the scope for performance
pay.(42)
+ improves flexibility and is in the compatible with the concept
of individual agreement-making .(43)
+ Employment Advocate can still refer to Commission if doubt
about no disadvantage test (NDT)
- allows for different pay and conditions among employees for
performing similar work
- potential to progressively bid down wages and conditions
through the selective application of AWAs to individual
employees.(44)
|
|
s.170WKD
Employment Advocate may revoke an approval or refusal of
AWAs, or extension, variation or termination
agreements
|
It is not clear whether the Employment Advocate has this
power.
|
In analysing the present situation, it was found
in Schanka that the Employment Advocate is unlikely to
have such a power. Moore J found that a withdrawal of an approval
is not an instrument under s. 33(3) of the Acts Interpretation Act:
"On present authority, such an instrument must be of a legislative
character whereas an approval notice issued by the Employment
Advocate appears to be executive in character." (45)
|
|
s. 170VX
Enable the Employment Advocate to recover the
shortfall in entitlements in specified circumstances where
an AWA or related agreement: ceases to have effect; is approved
with an employer action or undertakings; or was void.
(46)
|
s. 170VX
Approval for shortfall is currently limited to new employees.
Note that there is nothing that expressly authorises the Employment
Advocate to carry these additional functions, but they are
consistent with the functions of the Employment Advocate as set out
in s. 83BB
|
+ in light of the other proposals for commencement on signing
and the revocation power, this ensures that employees that cannot
take action themselves are not disadvantaged (47)
|
|
p. 170 VCB(1)(d)
The Employment Advocate must approve an AWA if the AWA
passes the no disadvantage test (NDT)
.
|
p. 170VPB(1)(a)
The Employment Advocate must approve an AWA for which a filing
receipt has been issued if the Employment Advocate is sure
that the AWA passes the NDT.
|
+ Employment Advocate has stated that we will be checking that
all the AWAs pass the NDT. (48)
- this forms part of general criticism that this Bill weakens
the application of the NDT.(49) Employment Advocate s
partnership arrangements mean that the Employment Advocate would to
some degree be relying on employers or their consultants to certify
that the agreements pass the NDT.
|
|
CERTIFIED AGREEMENTS
|
|
|
|
ss. 170LJ(3)(a), 170LK(2), 170LR(2)(a)
Allows the Commission to certify an agreement without restarting
the consideration period of 14 days when new
employees commence. Employer to take reasonable steps to ensure
agreement terms are explained.
|
p. 170LJ(3)(a)
Currently, it is unclear whether the consideration period for a
certified agreement must start again every time an employee joins
during a consideration period, ie. whether this falls within the
reasonable steps to be taken.
|
+ this measure addresses a technical defect .
(50)
|
|
ss. 170LT(11)
If a proposed agreement is varied for any reason after notice is
given, the Commission can forgo notification and
explanation requirements and certify an agreement if it is
satisfied that no employee suffered detriment as a result of that
failure.
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ss. 170LK(8)
If a proposed agreement is varied for any reason after notice is
given, the Commission must ensure that the employer give notice of
intention to make and provide access to the agreement, explain the
agreement, and provide employees with an opportunity to confer with
the employee organisation.
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+ an administrative saving in so far as it eliminates a process
that consumes time and resources for minor technical amendments
+ the Commission must still be satisfied that no employee has
suffered detriment as a result of the failure
- nevertheless, arguably, it removes a procedure through which
every variation is assessed and potentially reduces the likelihood
of scrutiny
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s. 170LVA
Dispense with formal hearings before the
Commission to certify, extend, vary or terminate a CA unless an
affected or prescribed party has requested a hearing or the
Commission is not satisfied that it can make a decision with the
information available to it.
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Although it is not a statutory requirement, it is currently the
Commission s practice to hold formal hearings.(51)
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+ written process only is sufficient in most cases and the
Commission can call a hearing when satisfied that it needs to
(52)
+ otherwise, agreements are only to be tested on an exceptions
basis which saves time away from workplaces (53)
- reduces overall scrutiny because it removes the general
obligation that a public hearing always be held.(54)
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ss. 170MC(1), 170MD(1) and 170MG(1)
removes the requirement that employee organisations must
consent to the initial bringing of a s. 170LK agreement
(agreements directly between employers and employees) to extend,
vary or terminate a current CA. Employee organisations can
volunteer to be bound by 170LK agreements (cf. 170LJ agreements to
which they are actually a party).
|
ss.170MC(1),170MD(1) and 170MG(1)
For 170LK agreements, both the employer and the employee
organisation must consent to extend, vary or terminate a current
CA.
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+ prevents employee organisations from blocking CAs that the
majority of employees support (55)
+ employee organisations should not be able to veto agreements
to which they are not directly a party
+ members can still invite the employee organisations to make
submissions with regard to the agreement
- reduces the real bargaining power of employee organisations by
giving a higher status to employer in these negotiations.
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Endnotes
-
- Explanatory Memorandum to the Workplace Relations Amendment
(Simplifying Agreement-Making) Bill 2002, (the WRA (SAM) Bill
2002), p. 6.
- Third parties technically includes employer associations,
unions, and the Australian Industrial Relations Commission.
- The following general comments are drawn from Mr Robert
McClelland MP s Second Reading Speech to AWA Procedures Bill 2000,
House Hansard, 4 5 October 2000.
- In accordance with the revised structure in the Bill, the
discussion of the similar schemes for making ancillary (extending,
varying, terminating) agreements are described separately below.
- See discussion of comparable employees below.
- Department submission, MOJO Report, p.103.
- Department and Australian Chamber of Commerce and Industry
submissions noted in the MOJO Report, p. 103.
- Explanatory Memorandum to the WRA (SAM) Bill 2002, pp. 37 38.
- McClelland, Second Reading Speech to AWA Procedures Bill 2000,
House Hansard, 4-5 October 2002.
- Community and Public Sector Union submission, MOJO Report, p.
103.
- See for example, Ms Karen Batt, Department of Education
evidence, MOJO Report, p. 312.
- The Hon. Tony Abbott MP, Second Reading Speech to the
WRA (SAM) Bill 2002.
- National Union of Workers submission MOJO Report, p. 104 and
see also Human Rights and Equal Opportunity Commission, MOJO
Report, p. 312.
- See comments on no disadvantage test under separate heading
below.
- Schanka v Employment National (Administration) Pty Ltd
[2001] FCA 1623 at para 54.
- Ibid., and see also Australian Capital Equity Pty Ltd v
Beale (1993) 41 FCR 242 at 256-257, Minister for
Immigration & Multicultural Affairs v Sharma (1999) 90 FCR
529 at [82], Dutton v Republic of South Africa
(1999) 162 ALR 625 at [32]).
- Given the proposals for immediate commencement and the
revocation power, the circumstances for potential shortfalls have
increased.
- MOJO Report, p. 107.
- Italics inserted.
- Mr Robert McClelland MP, New Bill would further undermine AWA
safeguards , Media
Release, 26 June 2002.
- Ibid. In particular, Mr McClelland notes that Under a special
fast track programme, the Employment Advocate relies on assurances
by employers or private consultants that AWAs meet the
no-disadvantage test. But any delegation of the function of
checking AWAs to make sure they comply to somebody other than a
public servant is unlawful.
- Existing paragraph 170LR(2)(b) and proposed paragraph
170LK(2)(c).
- Explanatory Memorandum to the WRA (SAM) Bill 2002, p. 3.
- Ibid.
- Proposed paragraphs 170LVA(1)(b)(i-v)
- MOJO Report p. 98.
- Ibid., p. 98.
- Ibid., p. 99.
- Explanatory Memorandum to the WRA (SAM) Bill, p. 42.
- Sections 170MH and 170MHA are separate and mirror provisions
for the termination of certified agreements after the nominal
expiry dates. Items 24 and 26 insert equivalent provisions
regarding making submissions.
- Explanatory Memorandum to the WRA (SAM) Bill, p. 5.
- As well as the Bills Digests mentioned above, readers are
referred to the Employment and Workplace Relations Department
website at www.workplace.gov.au, and the
Library s general Industrial
Relations resources guide.
- Paul Robinson,
Industrial commission branded negligent The Age, 7
February 2002.
- John Lewer and Peter Waring, The no disadvantage test: failing
workers , Labour and Industry, 2001, Vol. 12 (10), pp. 65
86 at 71.
- Note to subsection 170VPG(4), Workplace Relations Act
1996. Waring and Lewer actually refer to the equivalent
provisions for Certified Agreements when discussing AWAs, ie.
subsections 170LT(3)and(4), but the effect is the same.
- MOJO Report, p. 103.
- Ibid.
- Ibid.
- Explanatory Memorandum to the WRA (SAM) Bill 2002, pp. 37-38.
- McClelland, Second Reading Speech to AWA Procedures Bill 2000,
House Hansard, 4-5 October 2002.
- MOJO Report, p. 103.
- Ibid., p. 312.
- The Hon. Tony Abbott MP, Second Reading Speech to the
WRA (SAM) Bill 2002.
- National Union of Workers MOJO Report, p. 104.
- Schanka v Employment National (Administration) Pty Ltd
[2001] FCA 1623 at para 54. See also Australian Capital Equity
Pty Ltd v Beale (1993) 41 FCR 242 at 256-257, Minister for
Immigration & Multicultural Affairs v Sharma (1999) 90 FCR
529 at [82], Dutton v Republic of South Africa
(1999) 162 ALR 625 at [32]).
- Given the proposals for immediate commencement and the
revocation power, the circumstances for potential shortfalls have
increased.
- MOJO Report p. 107.
- Mr Robert McClelland MP, New Bill would further undermine AWA
safeguards , Media
Release, 26 June 2002.
- Ibid.
- Explanatory Memorandum to the WRA (SAM) Bill 2002, pp. 37 38.
- Ibid., p. 3.
- MOJO Report p. 98.
- Ibid.
- Ibid., p. 99.
- Explanatory Memorandum to the WRA (SAM) Bill, p. 5.
Sudip Sen
10 December 2002
Bills Digest Service
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