COALITION SENATORS' DISSENTING REPORT

COALITION SENATORS' DISSENTING REPORT

1.1        Coalition senators consider this bill to be among the least meritorious pieces of legislation put by the Government in the 43rd Parliament. It proposes and promotes inequality in the workplace, and in doing so, creates division and workplace disharmony. Coalition senators note that work in the early childhood system is relatively low paid, performed primarily by women. Coalition senators also acknowledge the professional importance of early childhood educators, especially as research increasingly idenfies early childhood as a key period of development and opportunity for impact.

1.2        This Bill however, does nothing to assist the professionalisation of the sector as a whole. Coalition senators note the lofty aims of the Bill to 'improve quality outcomes for children...by enhancing professionalism in the early childhood education and care sector' rather than providing a pathway forward for industry and the sector to establish clear targets and evaluation methods and support structures, this Bill establishes an environment by which the United Voice union is facilitated to recruit members. Even if the blatant discrimination between employees in the sector was accepted as justified, it does nothing to bring about a long term growth in wages for those in the early childhood sector. As Mr Frank Cusmano, representing the Child Care Centres Association of Victoria stated:

We submit that the creation of this inequitable two-tier rate of pay is unfair and discriminatory, particularly given the use of taxpayer funds, and will not achieve in any way the stated object of the legislation. A fund that lasts two years and then leaves families and/or providers to pay the higher wages cannot fulfil the object of the bill. Instead, it leaves a whole sector in a state of turmoil and uncertainty for both those who have accessed the funding and those who have not.[1]

1.3        Central to the Coalition senators' objection to the measure is the advice on the Department of Education, Employment and Workplace Relations' (the Department) website that, in order to receive a grant, employees must be subject to an Enterprise Bargaining Agreement (EBA).[2] The committee heard evidence that only 20 per cent of providers currently have an EBA.[3]

1.4        The consequence of this ill-founded and unjustified requirement to take part in an EBA to obtain grant funding is that those in the sector doing identical jobs of identical value will be paid different wages. Even United Voice admitted to the committee that a quarter of its own members will not receive the proposed increase.[4] The evidence taken throughout the four hour hearing, confirmed that only up to 40 per cent of the workforce would be eligible for a wage increase. This clearly indicates that United Voice members will receive a disproportionate benefit.

1.5        To make matters worse, the grant is payable only in respect of long day care workers, and does not cover preschools, family day care, out of hours and other forms of early childhood care or education. It is very common for childcare centres to offer different kinds of care, and consequently to employ different types of carers. This scenario is particularly the case in hard-to-staff areas or where economies of scale are not achievable because of location, infrastructure or workforce constraints. This bill results in the worst Orwellian outcome, as some early childhood educators are more equal than others.

1.6        Workplace disputation would not be restricted to within childcare centres, but also between them, as a result of the fact that the measure is available on a 'first come first served' basis. Those who don't get in quickly will miss out, resulting in differential wages for like work between different centres. Child Care Centres Association of Victoria Chief Executive Frank Cusmano raised the very real issue of smaller provincial towns where opportunities for employment in early childhood education are restricted to two centres within a town. If only one centre receives the grant due to the arbitrary and flawed nature of the allocation process, staff will be paid more in one than another for no other reason than they were quicker with paperwork, leading to changed perceptions of quality in the community which may not be based on fact.

1.7         As if this were not bad enough, the fact that the measure is funded for only two years means that employees who are fortunate enough to receive increases will be faced with the prospect of seeing a reduction in their wages at the expiration of the funding. The obvious implication of that is yet more tension and disputation in the workplace, and a highly unenviable management situation for employers faced with the need to cut wages.

1.8        The rationale for imposing the EBA requirement is said to be the need for employees to be able to enforce the payment of pay increases flowing from the grant.[5]

1.9        Coalition senators find this argument deeply unconvincing. The payment of money by the Commonwealth is almost always conditional, requiring the party receiving the funds to subject themselves to a legally enforceable undertaking to spend the funds according to agreed terms. In addition, as was acknowledged by departmental officials at the committee's hearing, it is routine for officers of the Department or the Auditor-General or other applicable government agencies to conduct audits of the spending of money received from the Commonwealth. The granting of necessary access to information to auditors and others is a condition of the grant being made, and the overall rates of compliance are high.

1.10      Coalition senators also express grave concern for those employers and employees who are already subject to an EBA covering more categories of employee than long day care workers. In such cases, it seems to Coalition senators that amendments to pay rates for long day care workers would raise the prospect (if not the requirement) of an amendment to the EBA. What, then, of the workers covered by the EBA but not eligible for a pay increase? All workers subject to an EBA would be required to vote on any amendment to that agreement, even when the change does not benefit them, and Coalition senators can only imagine the cost, inconvenience, confusion, anger, disappointment and ultimately disputation that would come of such ballots being required across the country. This is a recipe for trouble in a sector which needs to become a focal point for developing positive outcomes for all children.

1.11      Coalition senators can only conclude that the proposed requirement for parties to be subject to an EBA before they can benefit from a grant is to benefit the trade unions seeking to bolster their flagging membership. Indeed, Mr Crosby from United Voice admitted to the committee that the EBA process is a fillip for the unions: 

Any enterprise agreement helps unions to sign up members, there is just no doubt about that. Every enterprise agreement we do starts off with a message to workers to join the union. We get our credibility, we get the money to do our job and we get the ability to bargain on behalf of the group of workers on the basis of 'Do we represent a majority of the workers or not?'. I heard this attack, and I saw it in The Australian yesterday, that we are using this to sign up workers. Of course we are. We have signed up workers all the way through the Big Steps campaign.[6]

1.12      Coalition senators also note with disappointment evidence from submissions such as that from the Australian Childcare Alliance, who informed the committee that:

Many of our members have reported that... union activity has been intimidating to both themselves and their staff. Our members around Australia have been advising us of the strong arm tactics of the United Voice Union organisers who have been telling members that they must have 60 per cent plus membership to engage with them to submit the Enterprise Agreement...ACA is also concerned as to how United Voice has accessed personal information on approved providers and educators. We understand that information can be gathered under the National Law through ACECQA but home addresses should not be made available. The ACA President has had a photo of her home posted by a union organiser on the Big Steps Facebook page with disparaging comments and also on the same organiser’s personal Facebook page and her personal email address advertised to the general union membership urging them to send her emails.[7]

1.13      When questioned on these allegations by the committee, Mr Crosby acknowledged that some of the Union's organisers and members were "over enthusiastic about saying, 'If you want the money you need to join'", and that this caused damage to the campaign.[8] There was also conflicting evidence to the committee about whether attempts by the union to counter such misleading and deceptive behaviour by organisers and members were sufficient, with some evidence suggesting that the conduct continued well after the committee was assured it had stopped.[9]

1.14      United Voice also confirmed that a photograph of a private home had been posted on a public social networking site and that this was regrettable. However, the union declined to apologise for the action.

1.15      The union also refused to apologise for producing misleading material suggesting to employees that, in order to be eligible for the pay rise they must join United Voice. Furthermore, Coalition senators consider that the material gave the impression to employees that the pay rise was guaranteed with union membership. Neither proposition was or is the case.[10]

1.16       Coalition senators condemn this kind of behaviour, and make the obvious point that it does a great disservice to the work and reputation of the union. While robust debate is to be encouraged, personal attacks are not. In fact it would seem incompatible to be both seeking to professionalise the workforce when simultaneously claiming the purported advocates of that workforce behave so unprofessionally.

1.17        Coalition senators cannot help but remark on the irrationality of the Government proposing this deeply discriminatory and inequitable bill while at the same time proposing the establishment of a Pay Equity Unit within the Fair Work Commission with the express purpose of achieving equitable pay levels for workers. Indeed, the Department's submission makes clear that the Government sees the two measures as complimentary:

When the Government announced the Fund they also announced a new Pay Equity Unit will be established in the Fair Work Commission with a focus on conducting research, and collecting data and specialist pay equity information to inform matters related to pay equity under the Fair Work Act, Modern Award reviews and annual minimum wage decisions. The Pay Equity Unit will examine gender and pay equity issues particularly in female dominated sectors such as early childhood education and care.[11]

1.18      It is patently absurd to propose a bill which is in its very nature discriminatory between workers, while at the same time introducing an administrative arrangement designed to counter discrimination and promote workplace equality.

1.19      Coalition senators also consider it noteworthy that the four groups of young people identified as being most at risk of disadvantage during the References Committee's recent inquiry into Teaching and Learning, and by the Gonski report, do not stand to benefit under the proposal. Those who have low socio-economic status, are Indigenous, have a disability or are from rural and remote regions, are most at risk of disadvantage compared to other children, but would see no particular benefit under this measure. This lack of targeting was reflected on by Mrs Gwynneth Bridge, representing the Australian Childcare Alliance:

I would think that none of those groups, as a group, would be benefited at all, because the funding is going to go wherever somebody applies, wherever they get in before—remember that it is first in, first served. It may not go into rural areas at all...It is not targeted to quality at all. It says it is. But how do you define quality? There is no real definition of quality, because there are too many parameters that make good quality. Children with disabilities are not targeted, and we would love to see money targeted to children with disabilities in the sector. It is not targeted to go to Aboriginal and Torres Strait Islander children. It is not targeted to rural children and nor to low socioeconomic children. They are amongst all services, so there would be some of each in services.[12]

1.20      Finally, Coalition senators wish to draw attention to what they consider to be an outright lie by the Minister for School Education, Early Education and Youth, the Hon. Peter Garrett MP, in his second reading speech to the House of Representatives on 30 May 2013. The Minister said, in part, that:

The fund...will enable grants to be paid services to supplement wage increases of all educators and staff assisting in the provision of quality early childhood education and care.[13][emphasis added]

1.21      As the preceding pages, and all evidence to the committee, have demonstrated, this is totally untrue. The Minister's statement is unjustifiable and misleads the Parliament. The fund would allow for wage increases for some carers, in some centres, for a short period. Even this would only be possible after clearing numerous administrative burdens, some of which have the great potential to cause enormous workplace disharmony and disputation, which in a number of respects the bill fosters and encourages.

1.22      In light of the Minister’s comments, the union’s behaviour and the evidence given, it would seem the government is, once again, big on promises and short on delivery. The amount of money required to fund the initiative across the sector for the first year, based on a flat $3 per hour increase for the whole long day care sector, is $320 million per annum. This is significantly more than what the Government has budgeted for. On 30 May the Senate referred the Bill for inquiry and report and submissions were due by 7 June. This is hardly sufficient time for industry and the public to consider the Bill. It is also demonstrative of this Government’s bad governance practices.

1.23      Coalition senators note that the government’s wasteful budget campaign over the last seven years has left it unable to make the real changes necessary. As such, as usual, the Gillard government practice has not matched its rhetoric. This Bill reeks of self-centred vote-buying rather than a genuine effort to address the concerns of the lowest paid workers, who are reputedly doing the work most valuable to a society, yet undervalued by this government; the care and education of our young people.

1.24       It is counter to the Government's stated intentions, and to the needs of the sector, and should be voted down by the Senate.

Recommendation 1

1.25      Coalition senators recommend that the bill should not proceed.

 

Senator Chris Back
Deputy Chair
Senator Bridget McKenzie

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