10. INDUSTRIAL RELATIONS
10.1 Workplace Relations Framework
10.1.3 Affirmative Action Agency
10.2 Public Sector Workplace Relations
10.3 Workplace Development and Services
10.4 Executive and Corporate Services
The Department of Industrial Relations (DIR) has been restructured by adding Program 4 (Executive and Corporate Services) in 1996 to the three programs which functioned in 1995. The relevant Portfolio Budget Statement have been compiled to reflect this new structure and as far as possible information has been compiled on a like for like basis. The overall staffing is expected to decline from 1841 to 1474 in 1996-97-this includes the staffing of authorities covered within the portfolio.
Program 1 covers the operations of three statutory authorities: the Affirmative Action Agency, the Australian Industrial Relations Commission (AIRC) and Australian Industrial Registry (AIR) and the National Occupational Health and Safety Commission. As well the following departmental programs are included in Program 1: Industrial Relations Policy, Legal and Standards and, assuming passage of the Workplace Reform Bill, the Office of the Employment Advocate.
The Program's budget has been reduced from $86.5 million in 1995-96 to $84.1 million for 1996-97, however provision of $12 million has been included in this amount for the Office of the Employment Advocate. Thus other sub-programs have had to make significant savings to bring the budget below last year's allocation. Significant staffing reductions will occur in the AIRC and Registry. The three authorities had been identified for additional reductions to running costs in the Budget Measures. It is proposed that the Industrial Relations Policy program will assist in preparing a test case to introduce the Modern Australian Apprenticeship and Traineeship System.
The Affirmative Action Agency is charged with ensuring implementation of the provisions of the Affirmative Action (Equal Employment Opportunity for Women) Act 1986. Strategies to manage the 30% cut in funding will include:
The emphasis on best practice and recognition of, and publicity for, successful affirmative action employers are planned to continue, as is the production of publications and publicity material promoting a best practice affirmative action approach.
Program 2 covers the following sub-programs: Australian Government Employment (2.1), the Remuneration Tribunals (2.2) and Comcare Australia and the Safety Rehabilitation and Compensation Commission (2.3). Although the Budget figures indicate an increase in resources, it needs to be noted that this is associated with a re-appraisal of workers compensation accounting.
The Australian Government Employment Sub-program has been reduced by 20% of its funding compared to 1995-96. It is expected to assist in devising policy responses to the future of the Public Service, including a new Public Service Act. It will also develop the framework and policy for workplace relations and bargaining in the Australian Government Employment Sector, particularly where these functions are associated with the sale of Government assets and the outsourcing of functions.
The Remunerations Tribunals Sub-program (2.2) covers the Defence Force remuneration tribunal, the Remuneration Tribunal and the Pharmaceutical Benefits Remuneration Tribunal. These agencies are required to meet Budget cost reduction initiatives and are assisted by a carry-over provision.
The Comcare Australia and the Safety, Rehabilitation and Compensation Commission Sub-program (2.3) has lost part of its revenue base as some Government business enterprises have been granted licenses to self-insure. Comcare has been required to reduce the number and cost of APS stress claims in the forthcoming year. The Budget requires a reduction in running costs of 10% and a reduction in staffing of 6% (456 to 430).
Sub-program 3.1, Industry Strategy and Operations, replaces the Private Sector Reform and Best Practice Sub-program. The Sub-program is subject to a number of budget measures to reduce expenditures. Winding up the Workplace Bargaining and Best Practice Program reduces outlays by $13.9 million, while the 2% in running cost reduction coupled with measures directed toward DIR programs make for an additional reduction of $9.5 million in 1996-97.
The Best Practice Program was designed to facilitate good workplace relations in certain firms and enterprises, which would be reflected in the quality of their industrial agreements. Firms and workplace unions were provided with finance to develop these agreements. The aim was to encourage the spread of enterprise bargaining. DIR's own report 1994 Annual Report: Enterprise Bargaining in Australia had highlighted the difficulties presented from the switch from centralised industrial relations to workplace agreements.
Staff years (ASL) reduce from 326 in 1995-96 to 205 in 1996-97. In all, the sub-program loses over 60% compared to last year. The sub-program provides industrial inspectorate services and processes tradespersons' rights applications (which recognise the work experience of those wanting to work as tradespersons).
Sub-program 3.2, Special Industry Services, was formerly located in Sub-program 1. Its purpose is to assist with the operation of long service leave funding legislation applying to the coal mining industry and legislation operating levies in the stevedoring industry. The loan facility for the stevedoring industry which has been used to assist with reducing staff numbers in that industry is expected to be discharged.
Program 4 is a new program for the Department of Industrial Relations (DIR). It provides corporate and executive services to the department. Sub-program 4.1 is the executive management Sub-program. It has been responsible for managing the task force which provided the blueprint for the Government's Workplace Relations and Other Legislation Amendment Bill. As well, it has had the task of downsizing the Department. The Sub-program has gained resources from a transfer of these from Corporate Services.
Sub-program 4.2 covers the Department's corporate services function. Its budget has been reduced by $3 million from Budget measures and an additional $5 million transferred to executive management. Corporate Services has closed DIR's library and contracted-in library services from the Department of Employment, Education, Training and Youth Affairs and will be adjusting office space to reflect the lower numbers of staff.
Sub-program 4.3 operates the Australian Trade Union Training Authority. The Sub-program is charged with the winding-up of the Authority and disposing of its assets resulting in savings of $10.6 million this financial year.
Back to Budget Review 1996-97 Contents
Back to Detailed Portfolio Reviews Contents
