Labor's Forward with Fairness - what do I need to do?
You are here:Do employers need to rush to implement changes under the old rules, before everything changes? Well, yes and no, depending on whether you've used AWAs before. If not, then we wouldn't suggest you change course now... Read on for details and our analysis of Forward with Fairness, Labor's future plan for industrial relations.
Labor's Implementation Timelines
Labor had released detailed pre-election policy documents and implementation plans about its future plan for industrial relations in Australia.
We believe there was a substantial narrowing of the gap between the policies of Labor and the previous Howard Government during the course of the election. As ever, the devil will be in the detail and we need to see the final legislation.
Variable factors include whether the Greens are able to exert significant pressure on the Rudd Labor Government come 1 July 2008, when a number of new Senators take their seats in Federal Parliament. There is also likely to be significant lobbying by unions and employer representatives alike prior to the legislation being finalised, and Prime Minister-elect Kevin Rudd has promised plenty of consultation on the final legislation prior to it being enacted.
According to the ALP policy documents, there will be 2 major phases in Labor's revison to our IR laws -
Short Term
Labor had announced a Transitional Bill, aimed at getting rid of AWAs, as well as introducing an extra 5 National Employment Standards (in addition to the existing 5 Fair Pay and Conditions Standards under Work Choices), making a total of 10.
Whilst pre-existing AWAs will be able to serve out their full term (and then terminate under the current rules), after the Transitional Bill commences AWAs will no longer be available. In their place will be a new alternative, Individual Transitional Employment Agreements (ITEAs). ITEAs will have a nominal life of no later than 31/12/09, and can't disadvantage the employee against a collective agreement if there is one, or if not, then against the award and Standard combined.
Importantly, ITEAs will only be available for employers who had AWAs already in place as at a particular date (was 1/12/07, but it is rumoured this date could be put back), and can only be used for new employees being engaged, or for existing employees already on an AWA.
Our Comment - Our general view is, if AWAs weren't important enough for you to implement pre- the election, nothing has really changed at this point to make them far more compelling now. Finding and retaining good people remains a much higher priority for most employers than seeking to reduce some employment conditions using tghe extra floexibility afforded by AWAs. However, we are happy to talk over your circumstances to see if we can help sharpen your view on this issue.
Longer Term
Many of Labor's more far reaching plans are not meant to become law until 1/1/10. For example, the establishment of a new body called Fair Work Australia to replace all the myriad of existing government departments and different industrial tribunals also happens then. As already indicated, the 10 Minimum Employment Standards will also take effect from 1/1/10.
Our Summary of Labor's Plans
We have created a summary of Labor's Forward with Fairness policy announcements in a PowerPoint online format. It is hyperlinked and indexed, so you can easily move around to different related topics. We think it is an easier read than wading through mountains of words (let us know if you disagree, or agree).
Click here for our online PowerPoint summary of Forward with Fairness. (Note - its about 750 kb in size, so give it 30 seconds or more to download)
Our Employer Protection Advisory Service (EPAS) clients and Telephone Advisory Service clients are encouraged to give us a call on 1300 55 66 37 if they have any queries regarding our summary, or the specific content of Labor's policies.
What do you think? Want to share your point of view? Use the comment function below to post a comment about this article.
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