Workplace Relations Reform WORK CHOICES Presented by Employment Relations Services, Motor Traders’ Association of NSW

Work Choices relies on Corporations Power to bring all corporations into the new federal system Territories Power – all businesses in ACT Industrial Relations Power - a Transitional measure only to keep non corporations within the system for 5 years

Work Choices – Object of the Act Encourage high employment, low inflation, international competitiveness via high productivity & fair flexible labour market That responsibility for employment matters is with parties at enterprise level Employers & employees choose the form of agreement Compliance with minimum standards Awards act as a minimum safety net

Work Choices establishes Australian Fair Pay Commission Australian Fair Pay & Conditions Standard Australian Pay & Classification Scale New Transmission of Business obligations New Workplace Agreement regime New Union Right of Entry Requirements Awards to be Reviewed Unfair Dismissal exemption for med/small employers & severance pay exemption small business Unfair contract provisions

Australian Fair Pay Commission decisions only apply to constitutional corporations and all employers in ACT (& Victoria). Est. the Aust Pay & Classification Scale Conducts wage reviews Sets the Federal Minimum Wage Set wages for apprentices, trainees & disabled. Sets casual loadings

Fair Pay & Conditions Standard applies: constitutional corps and all employers ACT, Vic Applies to all employees (incl. award free) Federal Minimum Wage $12.75/hr. Paid weekly Casual loading Max average 38 ordinary hours per week Personal/Carers leave of 10 days, plus 2 days compassionate leave 4 Weeks Annual leave Parental leave of 52 weeks unpaid

New Minimum Entitlements Employees must have a meal break of 30 minutes after not more than 5 hours Does not apply where award or agreement cover Entitlement to public holidays –New year, Australia Day, Good Friday, Easter Monday, ANZAC Day, Christmas Day & Boxing Day Employer right to request work; employee right to refuse on “reasonable grounds”

AWARDS State & Territory boundaries removed Review – Number of Fed Awards Review to remove non allowable matters Redundancy provisions altered to ensure only apply to employers of 15 or more employees Inclusion of model dispute settlement procedure

Awards constitutional corporations, employers ACT, Vic “Preserved” award provisions declared – annual leave, personal/carers leave, long service leave, parental leave, notice periods, Jury service leave & superannuation (till 30.6.08) Such provisions preserved in existing awards, not permitted in new awards Where the AFP&C Standard also applies the “more generous” prevails MTA members will continue to be respondent through MTA membership State Awards becomes “Notional Agreements Preserving State Awards” for 3 years.

Preserved Award Provisions OR AFP&C Standard Parental leave As per award AFP&C Standard Annual leave mthly accrual, due when accrued with approval, Er may require leave be taken after 2yrs Personal/Carers leave 10 days + 2 LWOP + 2 compassionate

Transition to AFP&C Standard from award effective 27 March 2006 Annual leave – F’time working 38 hours = 11.692307 hours each 4 weeks (nominal hours over 4 weeks divided by 13 = hours accrued. (award accrual 2.923 hrs/wk) Personal/Carers leave – F’time working 38 hours = 5.84615 each 4 weeks (nominal hours over 4 weeks divided by 26 = hours accrued. (award accrual 1.169 hrs/wk or 4.676/4 wks) Compassionate leave – 2 days on each occasion Award bereavement leave does not apply. (award 3 days bereavement leave does not apply)

Awards non constitutional corporations – sole traders/partnerships in NSW Known as “Transitional Awards” (Schedule 13) Such businesses respondent to award via MTA membership (for 5 years) Preserved transitional award terms long service leave, notice periods, jury service leave & superannuation till 30.6.08. Can’t be varied Such employers not bound to observe AFP&C Standard – no “”more generous” test applicable When varying transitional awards the AIRC to have regard for AFPC decisions (wage adjustments)

Termination of Employment constitutional corporations and all employers in ACT & Vic Exemption from unfair dismissal for employers with 100 or less employees Employers with over 100 employees - employees will not be entitled to access unfair dismissal regime if terminated inside six months after engagement Plus – no unfair dismissal available if employee terminated for legitimate economic, structural, operational reasons

Termination of Employment all employers Subject to Unlawful Termination claims – termination based upon race, colour, sex, family responsibilities, physical incapacity, religion, etc Non constitutional corps – State discrimination and unfair dismissal laws

Termination of Employment non constitutional corporations in NSW – sole traders/partnerships Subject to State unfair dismissal laws

Termination of Employment all employers with less than 15 employees Exemption from having to make severance payments when making an employee redundant

AGREEMENTS available only to constitutional corps all employers ACT, Vic Types of agreements: Australian Workplace Agreements Employee Collective Agreements Union Collective Agreements Union Greenfield Employer Greenfield Multi Business Agreements

AGREEMENTS Once an agreement applies the parties may never resume coverage under an award AFP&C Standard prevails Protected award provisions (rest breaks, incentive based payments, leave loading, monetary allowances, overtime, shift work, penalty rates & State gazetted public holidays) will apply unless specifically excluded Must not include prohibited content (as specified in Regulations – penalties apply)

Australian Workplace Agreements constitutional corporations, all employers in ACT, Vic Individual employee/employer agreement Approved upon signing and operative when filed Parties to agreements confidential

Other Work Choice Matters New restrictions on union right of entry Increased DIR enforcement resources (+300 personnel) State awards will become “Notional Agreements Preserving State Awards” & will operate for a period of 3 years Pre-reform agreements continue. Not subject to AFP&C Standard, public holiday minimum entitlement

Where to from here? Electronic Employment Relations Service IR News & MTA Journal Take a considered approach. Plan. No need for urgent action in most cases. Take time to review the detailed notes. Utilise MTA’s Employment Relations Services