DRAFT POLICY WORKERS’ RIGHTS 2. MODERNISING THE SYSTEM OUR BARGAINING AGENDA 1. Congress commits to a bargaining agenda which aims to deliver improvements to worker’s lives and address their key industrial needs, including: a) Wage outcomes that, as a minimum, maintain the real value of wages and which secure a fair share for workers of efficiency gains, productivity growth and improved profitability; b) Improved hours of work; c) Increased job security; d) Improved conditions for casuals and workers in precarious employment; e) Better work, life and family balance; f) Equal remuneration for work of equal or comparable value for women, visa holders, indigenous workers, young workers, and workers with a disability; g) Greater superannuation entitlements; h) Protection and portability of employee entitlements; i) Improved delegate’s rights; and j) Access to improved leave entitlements. 2. Congress rejects the notion that productivity means cuts to jobs and workers’ pay, rights and conditions. Congress notes that such notions, often advocated by employers and the current Federal Government, do not increase productivity and would decrease our standard of living. Congress further notes that the real drivers of productivity are, at the macro level, investment by government and employers in social capital, and physical and social infrastructure, and, at the enterprise level, development of a management culture that values the knowledge and input of workers. 3. Congress affirms the need for adequate resourcing for wage increases achieved through bargaining for workers in the public sector and publicly funded private sector. Workers’ Rights/Modernising the System – Policy| Page 1 LIFTING RESTRICTIONS ON AGREEMENT CONTENT 4. Congress commits to pursue changes to the Fair Work Act to ensure that parties are able to engage in co-operative and productive relationships that promote social inclusion and national prosperity through enterprise level collective bargaining. 5. Congress notes that imposing restrictions on the content of collective agreements is inconsistent with international obligations and in particular article 4 of the Right to Organise and Collective Bargaining Convention and article 3 of the Freedom of Association and Protection of the Right to Organise Convention. 6. Enterprise bargaining offers workers the capacity to influence arrangements relating to their employment and the employment of others that can have wider impacts for the benefit of society as a whole. 7. Congress is firmly of the view that there is no place in our industrial relations laws for restrictions on the content of collective agreements. 8. Workers should be free to make a judgment on the merits of the matters they seek to protect and the interests they seek to advance when bargaining with their employer. This assists in accommodating the changing needs and circumstances of different types of businesses, employment relationships, workers and communities. 9. In particular, Congress is concerned to ensure collective agreements can cover labour hire workers who are economically dependent servants and agents of an entity or host employer with which they have no “employment relationship” for any “matter” to “pertain to”. At a minimum, agreements should apply to work performed at the workplace rather than to specific employers in a labour supply chain. 10. Congress calls for the removal of the requirement that bargaining be restricted to matters pertaining to the employment relationship in order to ensure that the industrial relations system is relevant, responsive and fair. 11. Congress opposes any restrictions on agreement content which prevent workers and employers from freely agreeing to improve upon the statutory schemes for unfair dismissal and entry by union representatives. EFFECTIVE SECTORAL, INDUSTRY AND SUPPLY CHAIN BARGAINING 12. Congress notes that the Fair Work Act’s primary focus is on enterprise level bargaining and does not adequately support bargaining across sectors or industries. 13. Failure to negotiate on a sectoral or industry wide basis limits outcomes of bargaining to specific enterprises and does not assist with industry-wide improvements including skills development, training and apprenticeships. 14. In particular, enterprise bargaining across an industry and/or through and within a supply chain is more reflective of the modern organisation of industries operating on the basis of joint production and joint employment. Further, individual agencies in the public sector do not generally have the powers of an independent enterprise but are subject to Government policy in relation to bargaining. Workers’ Rights/Modernising the System – Policy| Page 2 15. In many industries, enterprise-level bargaining can encourage competition based almost entirely on the capacity of a single enterprise to undercut industry standards and reduce labour costs which results in a “race to the bottom” and the exploitation of the most vulnerable workers rather than competition on the basis of productivity, service or quality. 16. Congress believes that workers have a right to organize and negotiate their terms and conditions of employment at the level which achieves the best outcomes for them, which allows them to bargain with the actual decision-maker for their enterprise, and which is efficient and delivers consistency in outcomes. 17. In particular, Congress advocates for law reform to address the joint employment nature of arrangements between host employer, labour hire provider and worker. The Fair Work Act should be amended to recognise that both labour hire operator and host employer have a role in observing workers’ rights and entitlements. 18. Congress calls for amendments to the Fair Work Act to facilitate and support parties negotiating arrangements which have industry-wide, sector-wide or supply chain impact. 19. Congress supports the development of industry based councils which aim to collaboratively address the key issues facing both employers and employees and develop strategies to promote and progress the industry. ADDRESSING INSECURE WORK 20. Despite strong and sustained economic growth, recent decades have seen a worrying and dramatic rise of insecure work in Australia. 21. Congress notes that, today, only about 60% of workers are in full-time or part-time ongoing employment; the remaining – some four million workers – are engaged as casuals, on fixed-term contracts, in labour hire, or as independent contractors. 22. Insecure work means that a large section of the workforce does not share in our national economic prosperity. They have inferior rights, entitlements and job security to their counterparts in ongoing employment. It makes it tough for working families to plan for their future when they cannot rely on regular incomes, yet have rising household costs and are shouldering increasing household debt. 23. The rise of insecure work in Australia is the result of a business model that shifts the risks from the employer to the employee. Congress does not believe a strong, prosperous economy should come at the expense of quality jobs, respect for workers’ rights, or workers exercising some control over their working lives. 24. The Insecure Work in Australia (Inquiry Report) demonstrated that this issue is not confined to the margins of the Australian labour market. Insecure work can affect any worker – blue collar, white collar, private sector, public sector. It affects younger and older workers and, disproportionately, women, Aboriginal and Torres Strait Islander workers and workers from culturally and linguistically diverse backgrounds. It affects the high skilled as well as the low skilled. 25. Congress will continue its commitment to campaign for improved regulation of the labour market that provides all workers with a universal set of protections and entitlements and jobs that workers and their families can rely on, including: a) The opportunity to convert insecure work into secure work, including labour hire employees having the right to convert to the “host” employer; Workers’ Rights/Modernising the System – Policy| Page 3 b) Minimum engagement protections; c) Fair and predictable pay and hours of work; d) A say about how, where, and when they work, and to be consulted about change; e) Access to important conditions like annual leave, paid personal leave, overtime, penalty rates and long service leave; f) Protection from unfair dismissal; g) Quality skills, training and career opportunities; h) Better protections to workers employed indirectly through labour hire and agency arrangements, including prohibiting these workers from being paid less than a relevant collective agreement; i) Elimination of disguised employment arrangements like sham contracting; j) A healthy and safe work environment; and k) Measures that empower workers in insecure work to build a working life based on dignity, respect and fair recognition of their work. LICENSING OF LABOUR HIRE AGENCIES 26. Congress notes the substantial growth of labour hire agencies in recent years which currently constitutes a $19.3 billion industry comprising over 5400 entities. The lack of effective and proper regulation of the labour hire sector often encourages undercutting behaviour and exploitation of vulnerable workers. Many labour hire agencies are insufficiently capitalized and act as little more than conduits by which casual workers are deployed to a host employer as a means of reducing costs. The engagement of many labour hire agencies is symptomatic of an increasing shifting of risk from the host employer to the employee. 27. Many labour hire agencies ignore the provisions of industrial instruments and applicable laws by avoiding tax liability, and non-payment or underpayment of return to work premiums. 28. Congress supports the establishment of a comprehensive national scheme for the registration, licensing, accreditation and regulation of labour hire agencies. 29. Congress notes that this would not be a unique or radical move – throughout the OECD the UK, Canada, Korea, Japan, Germany, Austria, Spain, Luxembourg, the Netherlands, Sweden, Belgium, France, Italy and Portugal all operate licensing systems or codes of conduct that protect the rights and entitlements of labour hire employees. Workers’ Rights/Modernising the System – Policy| Page 4 PREVENTING SHAM ARRANGEMENTS 30. Congress notes labour hire and sub-contracting arrangements are used by some host or principal employers to screen themselves from legal responsibility for the people performing work for them. The layers of contractual obfuscation arising from many labour hire and sub-contracting arrangements can lead to exploitative practices such as underpayment, unfair termination and shams for which principals or host can avoid legal and moral responsibility. Congress supports measures to ensure principal and host employers cannot avoid responsibility for the people performing work for them through legal arrangement, including: a) making principal or host employers responsible for keeping employment records for all of the workers performing work for them (whether directly employed or not); b) making principal or host employers responsible for unfair dismissal in relation to all of the workers performing work for them (whether directly employed or not). PORTABLE ENTITLEMENTS 31. Congress affirms that employment mobility and insecure work requires workers entitlements to be based on the number of years of service in an industry rather than on the service with an employer. 32. Congress notes that leave performs an important function as part of the framework of worker entitlements that: 33. 34. a) Helps to maintain a balance between work and private life; b) Supports employees wellbeing and maintains healthy workplaces; c) Is an incentive to reduce labour turnover; and d) Is a means to enable employees to recover their energies and return to work renewed, refreshed, and re-invigorated. Congress supports working toward: a) The adoption of a nationally uniform minimum standard for long service leave, based on the highest common denominator; b) Access to portable long service leave, based on the new national minimum standard, for all industries that currently do not have access to industry portable long service leave; and c) Portable access to other forms of leave by all workers. Congress calls for an inquiry in to the feasibility and options for a national long service leave standard and the portability of long service and other leave entitlements. Workers’ Rights/Modernising the System – Policy| Page 5