Workplace relations update | 27 May 2022

Workplace Policy Committee meeting — Labor government’s Secure Australian Jobs Plan
On Thursday, June 23, 2022, ACCI’s Workplace Policy Committee (WPC) will convene online to further discuss the new Labor Government’s planned changes to Australia’s IR system and the Fair Work Act. We expect that the new government will move quickly to begin implementing its extensive list of workplace relations policies, primarily contained in its Secure Australian Jobs Plan.

The purpose of the meeting is to ensure that all members’ views are adequately canvassed and ACCI is equipped to get on the front foot with shaping how these policies are implemented. It is crucial that, irrespective of our opposition to any of the policies at large, we play a key role in ensuring that their adverse impact on employers and businesses is minimised by taking a practical approach where appropriate.

Annual wage review
On Wednesday, May 19, 2022, ACCI participated in the public consultations in the annual wage review held by the expert panel of the Fair Work Commission, following our two submissions to the review (initial submission, reply submission). In our statement to the panel, ACCI argued that significant risks to the economy remain which necessitate caution and last year’s minimum wage rise was based on an overly optimistic economic outlook which did not materialise. ACCI argued that modern award and minimum wages should rise by 3 per cent.

The next step in the annual wage review is the lodging of submissions in response to the national accounts march quarter 2022 data on June 3. During the public consultation, ACCI also informed the panel of our intention to seek permission to lodge an additional submission in reply if a new Commonwealth government makes a substantive submission to the review, following the federal election. Given the views expressed during the campaign by the former Labor opposition and their subsequent victory in the federal election, that may now be necessary should they make a new submission.

Family and domestic violence leave
On Monday, May 16, 2022, the Fair Work Commission handed down its decision in its review of the family and domestic violence leave entitlements in modern awards. The commission decided to grant the ACTU claim in full for an increase of the existing 5 days unpaid leave entitlement in the NES to 10 days paid leave under all modern awards. ACCI had argued before the commission instead that the existing entitlement adequately satisfied the modern awards objective by providing a fair and relevant minimum safety net.

However, it should be noted that the Labor Party took to the election a policy of expanding the NES entitlement to 10 days paid family and domestic violence leave, which if implemented, may render the commission’s decision largely inconsequential. ACCI remains concerned about disproportionally treating family and domestic violence leave as a workplace issue rather than a social, health and criminal matter for the community, as well as the capacity for businesses to bear the cost of an additional paid leave entitlement and will be making those views known to the government.

Productivity Commission inquiry — Carer’s Leave
Following the Royal Commission into Aged Care, the former treasurer requested the Productivity Commission to undertake an inquiry to examine the potential impact of amending the NES to provide for a minimum statutory entitlement to extended unpaid carer’s leave for employees caring for older Australians. The issues paper for the inquiry is due to be released on June 6, 2022, and ACCI intends to make a submission in response.