OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Fair Work Bill 2008 An overview HR Forum 9 December 2008

Operative dates Key features Possible implications for the NTPS Fair Work Bill 2008 OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT

Fair Work Bill 2008 Operative dates OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Bill introduced into Parliament 25 November 2008 Passed by House of Reps. last week. Senate to consider in February Transition Bill to be introduced March st elements of the Bill operate from 1 July 2009 (enterprise bargaining / Fair Work Australia / unfair dismissals) Bulk of the remaining provisions operate from 1 January 2010 (National Employment Standards and Modern Awards)

Fair Work Bill 2008 Key Features OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Completely new Act – applies to NT employees Divided into six parts – 600 pages Legislates for National Employment Standards Modern Awards New enterprise bargaining framework Fair Work Australia (FWA) Unfair dismissals Right of entry

Fair Work Bill 2008 Key Features cont. OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT National Employment Standards (NES) 10 legislated minimum employment standards 38 hr week (averaging provision available) Requests for flexible working arrangements Parental leave (unpaid) Annual leave (four weeks pa / new cash up provisions) Personal / carer’s leave (10 days pa) Community service leave (unpaid)

Fair Work Bill 2008 Key Features cont. OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT National Employment Standards cont. Long service leave (current state/territory legislation to apply until new national arrangements developed) Public holidays (right to refuse to work) Notice of termination and redundancy pay (severance components slightly different from NTPS) Fair Work Information Statement (to be provided to every employee)

Fair Work Bill 2008 Key Features cont. OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Modern Awards Process started by AIRC in June 2008 Due to be completed 1 January 2010 Establish safety net of minimum terms and conditions, including minimum wage, together with the NES Industry / occupational based awards Priority awards identified and exposure drafts released NTPS submission is for our awards to be treated as enterprise awards – NTPS Medical Officers Award

Fair Work Bill 2008 Key Features cont. OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Enterprise bargaining Significant changes from Workchoices No individual agreements, ie AWAs Collective bargaining is paramount Enterprise agreements from 1 July 2009 Concept of union and employee collective agreements abolished as are bargaining periods and prohibited content Modern award does not apply during term of agreement, but NES do

Fair Work Bill 2008 Key Features cont. OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Enterprise bargaining cont. Introduction of “bargaining representatives” Usually a union, but may not be All employees must be given the opportunity to appoint a bargaining representative Union only needs one member to be “at the table” May see entry of other unions in NTPS agreements eg ASU

Fair Work Bill 2008 Key Features cont. OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Enterprise bargaining cont. Permitted matters rather than prohibited content Must contain matters pertaining to the employment relationship Terms cannot be less than NES Must include flexibility term, consultative clause & DSP No offensive provisions or unlawful content, otherwise agreements can deal with anything No requirement for union to sign agreement before ballot Agreement must satisfy “Better off overall test” - “BOOT”

Fair Work Bill 2008 Key Features cont. OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Enterprise bargaining cont. Secret ballot for protected industrial action remains, but process streamlined Three working days notice of industrial action required Employer must deduct a minimum of four hours pay for industrial action Employer will be able to deduct pay for partial work bans FWA can suspend or terminate bargaining period in limited circumstances

Fair Work Bill 2008 Key Features cont. OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Enterprise bargaining cont. Parties required to “good faith” bargain FWA may issue order for a party to bargain in good faith If order breached then FWA may make serious breach declaration FWA may then make a bargaining related workplace determination – in effect an arbitrated outcome Unions may also apply for scope orders – could see some groups attempt to bargain separate agreements

Fair Work Bill 2008 Key Features cont. OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Fair Work Australia (FWA) One-stop shop Incorporates all current bodies under Workchoices including the AIRC. Can settle disputes but can only arbitrate if dispute settling procedures provide for it – most will Creation of Fair Work Divisions of Federal Court and Magistrates Courts Small claims jurisdiction up to $20K

Fair Work Bill 2008 Key Features cont. OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Unfair dismissals Most changes affect small business Focus on reinstatement Process aims to minimise the role of lawyers Right of entry Union may inspect records of non-members

Fair Work Bill 2008 Possible implications for the NTPS OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT Interaction b/w current agreements and new Act will not be known until transitions provisions are introduced in March 2009 NTPS provisions will need to be aligned with NES and possibly Modern Awards eg parental, personal, annual leave etc Award modernisation process may generate significant workload Scope for greater intervention of FWA in protracted bargaining disputes Unions could test good faith bargaining and scope orders Could be more unions at the table May see pressure for separate agreements from some groups Agreements may deal with more matters

Fair Work Bill 2008 Questions OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT