Public Service Association

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"WORKCHOICES" - FEDERAL IR CHANGES

PSA members will be affected by the Prime Minister's proposed changes.

The changes are complex, and will affect members in differing ways and at differing times. The following information provides some basic but relevant details.

All changes are as proposed by the PM, and still subject to the final passing of legislation and the outcome of any High Court appeals.

The most fundamental change is not so much the specifics identified below, but the general move away from collective outcomes. Past "across the board" improvements in such areas as leave, flextime, penalty rates, paid maternity leave, salaries, salary sacrifice, voluntary flexible
working arrangements, shift allowances, meal and vehicle allowances are not going to be as protected, or improved, with the greater emphasis on individual contracts.

A recent example of this is the PSA securing of 12 weeks Paid Maternity Leave, which was opposed by the employer. The likelihood of an individual member achieving such a benefit is negligible.

SINGLE IR SYSTEM
The proposed move to a single IR system will result in State based Awards and Agreements being carried over for a transitional period to the Federal system. Existing conditions will be pegged at current levels. PSM Act members are not immediately affected by this transfer, but members in "Corporations" are. eh Health members working in hospitals and incorporated health units, WorkCover Corporation, SA Water Corporation.

AUSTRALIAN WORKPLACE AGREEMENTS (AWA)
Current employees cannot be forced onto an AWA. New employment can be subject to an AWA. Most entitlements can be "voluntarily" traded away. A "simplified" registration process will be introduced that will remove scrutiny of AWA content and remove the "no disadvantage test". The Award no longer forms a safety net.

In Universities and TAFE the Federal Government has already stated that it wants funding to be conditional upon the offering of AWAs. Concern exists in other areas where Federal funding is provided.

DISMISSAL
Unfair Dismissal protection is removed where an employer has less than 100 staff. Protection exists only for unlawful dismissal if dismissed for specified reasons, such as race gender or an existing employee refusing to sign an AWA.

Most Australian workers will be able to be dismissed without reason and
without remedy.

ROLE OF AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION (AIRC)
Severely restricted to primarily a mediation role. The PM says that "the Government wants employers and employees to resolve disputes between themselves". Private alternative dispute resolution (ADR) providers will provide "choice" between the AIRC and ADR.

MINIMUM STANDARDS
Annual leave, personal/carer's leave (including sick leave), parental leave (including maternity leave) and maximum ordinary hours are specified as minimum standards. These standards can be reduced. AWAs, including for potential employees who want a job, can "voluntarily trade" these entitlements. eg more cash (unspecified) in lieu of penalties or for less leave.

This matter is large and complex and further information will be provided. The purpose of this PSA/CPSU Brief is to provide an overview regarding key issues.


Enquiries to Chief Industrial Officer, Peter Christopher on 8205 3200 or email pgc@cpsu.asn.au
12 October 2005


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