The Northern Rivers – NSW Business Chamber said the release of the Federal Government’s Review into the Fair Work Act seems more like an opportunity lost than a substantial step towards, making the nation’s industrial relations system more responsive to individual workplace needs.
“It’s well known that businesses have problems with the Fair Work Act as it currently operates and the NSW Business Chamber was hopeful that this report would more substantially address those problems,” John Murray, Northern Rivers – NSW Business Chamber Regional Manager, said.
“Let’s be clear about this, the business community does not want to go through the painful process of another new industrial relations system but we do need to improve the existing Fair Work Act. Successful modern workplaces need to be nimble to thrive and create jobs and our industrial system needs to provide the necessary certainty and flexibility for that.
“While the Review does deal with a number of technical issues satisfactorily, we are concerned it seems to misconceive the role that workplace regulation has in stifling or promoting productivity improvement.
“We do welcome the indication that Minister Shorten wants to use this report as a basis for further consultation with key stakeholders before deciding on the Government’s formal response to this Review.
“In coming to its view on changes to the Fair Work system, business expects the Government to address, in a fair and impartial way, the operational problems they have universally raised in their submissions to the Review.”
NSW Business Chamber’s independently commissioned report, “Productivity and Fair Work”, released in May, highlighted some systemic problems in the Fair Work Act.
“Productivity and Fair Work” draws attention to:
nthe presumption of conflict, and the norm of adversarial workplace relations;
na highly pervasive and prescriptive set of rules that over-regulate for worst cases to the detriment and cost of the majority of employers and employees; and
nthe lack of tolerance for customised and diverse workplace arrangements that meet community norms of fairness and freedom to operate, rather than a single mandated solution for all.
“It’s not in anyone’s interest that the Fair Work Act is the equivalent of using stone knives and bear skins in a digital, modern 24/7 economy.
“We need to give serious consideration to what the national economy would look like if there were not a resources boom. We need a system that is responsive and moves away from the ‘one size fits all’ approach that is currently at the heart of the Fair Work Act. We should recognise that our workplaces need to develop and provide competitive services and products in a global market and a world where there are limited government resources.
“If the Government is serious about being a strong economic manager, then it should take these suggestions on board and amend the Fair Work Act, so that it reduces regulatory burden and promotes a more balanced relationship between employers and employees.”
Some of the changes that need to be addressed by the Government include:
1. A merit-based revision of modern awards to tailor hours and penalty rate structures to contemporary trading conditions;
2. More far-reaching changes to individual flexibility agreements that makes them more accessible and workable;
3. Removing ambiguity about the nature and extent of rights against ‘adverse action’ by employers;
4. Tightening unfair dismissal laws to reduce the prevalence of ‘go away money’; and
5. Changing the current excessive transfer of business provisions.
