Industrial News 2007

June 2007

New agreement “fairness” test

In a somewhat surprising decision John Howard has announced that the federal government is to introduce a new ‘no disadvantage test’ for employees on AWAs who earn less than $75,000 per year and for all employees covered by collective agreements.

A ‘no disadvantage test’ was used by the Australian Industrial Relations Commission and state tribunals to ensure that employees who entered into individual or collective agreements would be no worse off than they were previously under the relevant award or industrial instrument. When the federal government introduced its WorkChoices legislation the ‘no disadvantage test’ was effectively scrapped and agreements only need to include five conditions of employment. Over the past two years this has resulted in thousands of employees being given no choice but to accept Australian Workplace Agreements and non union collective Agreements which dramatically reduced their pay and conditions of employment.

In May 2007, faced with unrelenting evidence and strong public concern, the federal government effectively conceded that their minimum standards were hurting working families and becoming a political liability.

And although the details of the changes remain sketchy it is now becoming evident that significant problems remain:

• the new laws do not apply to existing workers on AWA’s or collective agreements,
  
• the changes to the ‘no disadvantage test’ will not ensure that workers receive fair pay rises,
  
• the new laws will not ensure that workers receive financial compensation for the loss of their award conditions,
  
• an employer who is in a difficult economic circumstance need not provide compensation. Difficult economic circumstances are not defined,
  
• workers in regional country areas are not protected under the new ‘fairness test’.
  

Strip away all the media spin and it is clear that the fundamental problems with the Howard government’s industrial relations laws remain. The myriad of exemptions, exclusions and the general ambiguity of the changes suggests that for many employers, it will be business as usual.

Nick Blake
ANF Federal Industrial Officer