CHAPTER 1
Introduction and background
Referral
1.1
On 19 March 2015, the Hon. Christopher Pyne, MP, Minister for Education
and Training, introduced the Fair Work (Registered Organisations) Amendment
Bill 2014 [No. 2] (the bill) in the House of Representatives.[1]
1.2
On 14 May 2015, pursuant to a report of the Senate Standing Committee
for Selection of Bills, the Senate referred the provisions of the Bill to the Education
and Employment Legislation Committee (the committee) for inquiry and report by 11
August 2015.[2]
History of the bill
1.3
On 14 November 2013, the Fair Work (Registered Organisations) Amendment
Bill 2013 (the first bill) was referred to the committee for inquiry and
report.[3]
The report, tabled in December 2013, was supportive of the first bill and
recommended its passage subject to four other recommendations in relation to
certain provisions.[4]
The government subsequently tabled amendments giving effect to those
recommendations; however, the bill and the proposed amendments were negatived
in the Senate.
1.4
On 19 June 2014, the first bill was re-introduced as the Fair Work
(Registered Organisations) Amendment Bill 2014 (the second bill). The second
bill was not re-drafted to incorporate the proposed amendments, but they were
tabled alongside it. The second bill passed the House of Representatives but
was again negatived in the Senate.
1.5
The current bill has been re-drafted to incorporate the proposed
amendments, but is otherwise identical to the first and second bills.
Scope and conduct of the inquiry
1.6
Details of the inquiry were made available on the committee's website.
The committee also advertised the inquiry in The Australian and wrote to
key stakeholder groups, organisations and individuals to invite submissions. The
committee received 11 submissions as detailed in Appendix 1. No public hearings
were held.
1.7
The substance of the bill was examined in detail in the committee's
report on the first bill. This report focuses only on the subsequent amendments
to that bill and should be read concurrently with the previous report.
Overview of the bill
1.8
The bill, which is comprised of two schedules, seeks to amend the Fair
Work Act 2009 (Fair Work Act) and the Fair Work (Registered
Organisations) Act 2009 (RO Act) to improve the governance and oversight of
registered organisations following widely publicised misconduct by Health
Services Union officials.[5]
1.9
A registered organisation is an employee or employer association
registered by the Fair Work Commission under the RO Act. Registration grants an
association certain rights and privileges in representing its members'
interests; in exchange, the organisation must comply with various conditions
and obligations. There are currently 112 registered organisations in Australia,
of which 66 represent employers and 46 represent employees.
Schedule 1
1.10
Part 1 of Schedule 1 establishes the Registered Organisations Commission
(the Commission), an independent statutory authority to monitor and regulate
registered organisations. The Commission is to be headed by the Registered
Organisations Commissioner (the Commissioner), whose functions and powers are
based on those of the General Manager of the Fair Work Commission as well as
those set out in the Australian Securities and Investments Commission Act
2001.[6]
Part 1 sets out the terms and conditions of the Commissioner's appointment and
provides for staff from the Office of the Fair Work Ombudsman to assist the
Commissioner as directed.
1.11 Part 2 of Schedule 1 consists of the necessary consequential,
transitional and savings provisions.
Schedule 2
1.12
Part 1 of Schedule 2 alters the reporting and disclosure obligations of
registered organisations and their officers, increases the civil penalties for
non-compliance and introduces new criminal offences for the most serious
contraventions. The obligations and penalties are largely analogous to what is
imposed on companies and their directors under the Corporations Act 2001 (the
Corporations Act).[7]
1.13
Part 2 of Schedule 2 consists of the necessary consequential,
transitional and savings provisions.
Financial impact statement
1.14
There is no budgetary cost to the government.[8]
1.15
The Regulatory Impact Statement estimates the compliance cost for each
registered organisation to be about $1 275 per year on average.[9]
Consideration of the bill by other committees
1.16
The Committee notes that the provisions of this Bill and its predecessor
have previously been referred to the Senate Standing Committee on the Scrutiny
of Bills and the Parliamentary Joint Committee on Human Rights. The Committee
sees no need to revisit the deliberations of those two committees in this
report, but notes those reports and the government's previous responses.
Acknowledgement
1.17
The committee thanks the organisations that contributed to the inquiry
by preparing written submissions.
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