Retail IR National Conference 2007 - Melbourne

Retail IR National Conference 2007 - Melbourne

Date: Wednesday, 5th September 2007

Venue: Olympic Room, Melbourne Cricket Ground

Event Summary & Photos

 

The Conference - 5th September 2007

On 5 September ARA hosted a major industrial relations event for members at the Olympic Room at the MCG; Retail IR National Conference 2007 'The Future of Australian Workplace Relations'. The event brought together a whose who line up of most of the major participants in the current industrial debate including The Honourable Joe Hockey, Minister for Employment and Workplace Relations who opened the event and Ms Julia Gillard MP, who addressed the special conference luncheon and participated in a question and answer panel session with Peter Anderson from ACCI.

Feedback on the conference was extremely positive. ARA takes this opportunity to thank our sponsors as well as ARA staff who contributed to the success of the event. Many thanks to our platinum sponsor Lander & Rogers Lawyers and a special thank you to Partner, Mark Diserio, who facilitated the luncheon panel session. Thanks also to our gold sponsors, Work Options, the injury management specialists, and Superprint.

Here's What The Speakers Had To Say...

The Honourable Joe Hockey, Minister Employment and Workplace Relations

The Minister spoke at length about the importance the workplace relations reforms to current economic indicators including unemployment rates near 4%, confidence by business to hire, flexibility in agreement making options and the Government's view that if the ALP becomes able to implement the ALP workplace relations policy 'Forward with Fairness' that the current positive economic climate in Australia will be at risk. In relation to the introduction of the Fairness Test for workplace agreements, the Minister reiterated that the Government never intended that it become the 'norm' for workplace agreements to exclude protected award conditions without adequate compensation. in relation to the ALP, the Minister warned that with 70% of the ALP front bench comprised of former trade unionists employers should be very wary of claims by the Opposition leadership that the ALP policy platform adopted at the ALP national conference in April 2007 will not find its way into the workplace relations system the ALP will implement if elected. The Minister also said that the Government believes that it is the ALP's intention to replicate the NSW Workcover scheme to the rest of Australia if they become able to do so following the election.

Christena Singh, Author-Sensis Business index and Consumer Reports

On 4 September Sensis released their latest data collected about small and medium enterprises (SMEs) gauging business confidence, perceptions of the economy, expectations for the next 12 months and the views of the SME's about the workplace relations reforms. Christena delivered a presentation to the conference breaking down retail SME views of the workplace relations reforms, derived from that Sensis report. Christena reported that the retail sector reported the lowest confidence of any industry sector with performance in sales, profitability, employment and capital expenditure all below average, as were the expectations for both the coming quarter and year for these indicators. The most significant factors impacting on low retail confidence levels was concern that labour might win government and electoral uncertainty followed by concerns about a decrease in business and concerns about changes to government policy.

In relation to the workplace relations reforms Christena also reported that 13% of retail SMEs were planning to make future changes by introducing AWAs and new workplace agreements, hiring more staff, increasing pay rates, introducing more flexible working arrangements and making changes to sick leave arrangements. In rlation to having already implemented changes as the result of the reforms the average proportion of SMEs that have made changes across all sectors was 11% with 14% of retail SMEs indicating they had already made some change as a result of the reforms, most commonly by introducing new workplace agreements and individual contracts. 7% indicated they had converted casuals to permanent staff as a result of the changes and 6% having put new employees on as a result of the reforms. 21% of retail SMEs believed a return of unfair dismissal laws would impact negatively on their business and only 5% of retail SMEs believed that the introduction of the fairness test would impact negatively on their business. Of those 5%, overwhelmingly the negative impact was reported as being related to more paperwork. In addition 48% of retailers have not yet commenced to hand out the Workplace Relations Fact Sheet, gazetted on 20 July 2007. (This data has been reproduced with the kind permission of Sensis).

A full copy of Ms Singh's speech can be downloaded - click here.

Professor Ian Harper, Chairman Australian Fair Pay Commission

Professor Ian Harper is the inaugural Chairman of the Australian Fair Pay Commission. Professor Harper addressed the conference about the role and the decision making processes of the Australian Fair Pay Commission, including the statutory matters the Australian Fair Pay Commission must take into account when making decisions. He also addressed the conference on the 2006 and 2007 decisions of the Australian Fair Pay Commission to increase minimum rates of pay and the timing of future decisions.

Professor Harper also spoke about the Australian Fair pay Commission upcoming reviews into junior rates of pay and training arrangements and confirmed that an issues paper on junior rates of pay will be released on 26 September 2007. When questioned if the junior rates review will include scope for the abolition of junior rates of pa Professor Harper indicated that he was interested in hearing explanations as to why junior wages promote the economic prosperity and how they ensure young people remained competitive in the labour market.

Peter Mcllwain, Deputy Director Workplace Authority

Deputy Director of the Workplace Authority, Peter Mcllwain, addressed the conference on the fairness test introduced for workplace agreements from 7 May 2007, what is considered fair compensation and what is not considered fair compensation by the Workplace Authority for the exclusion or modification of protected award conditions, the processes the Workplace Authority is employing in relation to fairness test pre-assessments and prohibited conduct checks.

Peter Anderson, Director Workplace Policy, ACCI

Peter Anderson, Director Workplace Policy at the Australian Chamber of Commerce and Industry (ACCI provided an overview of industry's perspective on the workplace relations reforms and the ALP alternate policy 'Forward with Fairness'. Peter spoke of serious concern ACCI members have about the ALP's proposed abolition of Australian Workplace Agreements and the proposed implementation of a system of 'good faith' collective bargaining. Peter expressed skeptisim about the ALP's position that the inclusion in awards of flexibility provisions would amount to an alternate to the flexibility that Australian Workplace Agreements afford employers. Peter told the conference that it is ACCI's firm view that the exception from unfair dismissal in existence since the reform commencement had undoubtedly led to the remarkable growth in full-time employment since the reform commencement, with some 85% of all jobs created since March 2006, being full-time jobs.

Ms Julia Gillard MP, Deputy Leader of the Opposition

Special conference luncheon speaker Ms Julia Gillard MP addressed the conference on the ALP's alternate industrial relations policy 'Forward with Fairness'. Ms Gillard recognized the retail industry as the biggest user of Australian Workplace Agreements and the interest in this sector in the ALP's transitional arrangements for those using AWAs. Ms Gillard indicated that with the ALP's policy to abolition of any form of individual statutory agreement making that the ALP would afford employers alternate flexibility in three ways.

Firstly the award system will not apply to those who earn more than $100,000. Secondly every award and collective agreement will be required to have a flexibility clause and thirdly the ALP policy will be introduced in a way that gives flexibility and certainty. Ms Gillard outlined the transitional arrangements that the ALP will put in place if they become able to do so following the election. No new AWAs will be able to be made from early in 2008 when transitional arrangements will commence for a 2 year period. During the transitional phase those employers already using AWAs in their business will be able to enter into individual transitional employment agreements (ITEAs) with new and existing employees already covered by AWAs.

Ms Gillard was critical of the Government in her speech that the Government is yet to release a workplace relations policy for the upcoming election. Ms Gillard continued to asset that the Government has made false claims about Labour's plan for the future and the benefits of the workplace reforms.

A full copy of Ms Gillard's speech can be downloaded - click here.

Luncheon Panel Session

Mark Diserio, Partner Workplace Relations at Lander and Rogers Lawyers, facilitated the special luncheon panel session. Mark was joined by Peter Anderson, Director Workplace Relations Policy at ACCI and Ms Julia Gillard MP, Deputy Leader of the Opposition and Opposition Industrial Relations Spokesperson. The attendees sought the panel's comments to a range of workplace relations policy matters of importance to the retail industry, including the ALP's proposal to support flexibility through the inclusion of flexibility clauses to be included in awards the ALP's position in relation to junior rates of pay. On the later Ms Gillard indicated that Labour's platform adopted at the ALP national conference in April 2007 to establish competency and skill based pay structures for young workers would not necessarily be adopted by the parliamentary party, that the platform was merely a 'foundation' document. Ms Gillard also said that she believes that the Australian Fair Pay Commission's upcoming review of junior rates was misconceived, that junior rates should be part of the system, but there may be alternate to aged based rates.

Nick Wilson, Workplace Ombudsman

Following the luncheon Nick Wilson, the Workplace Ombudsman, addressed the conference on a new workplace relations environment where heightened awareness of the need for workplace relations compliance exists. The Ombudsman told the conference that as the labour market has been deregulated, the community's expectations about compliance have heightened and that the community won't stand for abuse of 'vulnerable workers', many of whom are engaged by the retail industry. The Ombudsman also told the conference that the risk for employers of not complying were substantial, including loss of reputation and adverse publicity. He also highlighted that non-compliance can occur where employers get 'over-creative' in their approach to compliance issues or through poor implementation of obligations.

Non-compliant employers face the risk of investigation or prosecution and the Workplace Ombudsman can and will prosecute breaches of the Workplace Relations Act as well as refer matters to the Immigration Department in relation to skilled migration program breaches. The Ombudsman recommended a strategic approach to compliance through 4 steps. Firstly inform yourself as an employer and all those to be involved in implementation of obligations and your staff. Secondly decide what is your strategy in relations to workplace relations and how are you going to implement it. Thirdly engage, through an implementation plan, with the people who will be implementing the plan and with your staff. Finally audit how the program actually worked and what your staff think, as well as your managers.

Justice Geoffrey Giudice, President Australian Industrial Relations Commission

Justice Geoffrey Guidice addressed the conference on the changed role of the Australian Industrial Relations Commission following the workplace relations reforms of March 2006 with the emphasis being on dispute resolution, industrial action, termination of employment claims and rationalising and simplifying awards. His Honour examined the role the AIRC plays in alternate dispute resolution under the model dispute resolution processes, collective bargaining disputes, disputes under workplace agreements and disputes under 'old' certified agreements.

His Honour also addressed the conference on the role of the AIRC in relation to secret ballot orders and the AIRC's role in stopping unprotect industrial action, the role of the AIRC in relation to transitional awards and award rationalisation and the ongoing role of the AIRC in hearing unfair dismissal matters and mediating claims of unlawful termination.

Senator Steve Fielding, Family First

Senator Stave Fielding provided the conference an overview of how Family First was established and various policy positions of Family First. Senator Fielding highlighted to the conference that various political observers believe that either the Green's or Family First will hold the balance of power in the Senate following the election, which in turn will have significant implications for the passage of any legislation irrespective of which main political party holds government.

Senator Fielding indicated that Family First was not opposed to AWA's per se as long as certain guaranteed basic conditions are met. The Senator also told the conference that Family First holds the view that the Government's changes to the unfair dismissal laws had gone too far. The Senator also said that unions should have a right to represent employees on a voluntary basis, that Family First supports collective bargaining rights, but not where union involvement is compulsory and Family First supports enterprise bargaining but not pattern bargaining.

A full copy of the Senator's speech can be downloaded - click here.

Enquiries

For more information on this and other ARA events, please contact our events team on 1300 368 041.