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8th July 2008

The Australian Fair Pay Commission (AFPC) has today announced an increase of $21.66 per week to the Federal Minimum Wage (FMW). The AFPC’s decision increases the FMW to $543.78 per week ($14.31 per hour) up from $522.12 per week ($13.74 per hour).

This is a 4.15 per cent increase and will come into effect from the first pay period on or after 1 October 2008, 12 months after the previous annualised increase of 2.4 per cent.

The Government believes the increase is appropriate to the current economic conditions.

The decision to increase the federal minimum wages will directly benefit around 1.3 million Australians, who are in the Federal system and rely on minimum wages.

Today’s decision helps these families keep pace with cost of living increases. The Rudd Government’s tax cuts provide an extra benefit to assist with cost of living pressures.

This is acknowledged in the AFPC’s decision, which states that “this increase of $21.66 per week, together with relevant tax and transfer changes, will provide low income households with real increases in disposable income” (p. 8).

An employee earning the FMW will receive a tax cut of $8.65 per week in addition to the wage increase of $21.66.

A federal award reliant employee earning $676.42 a week will receive a weekly pay increase of $21.66 and a tax cut of $20.19 a week.

The AFPC has estimated that the combined effect of the increase in the FMW and the Government’s tax and transfer payment changes mean a single worker earning the FMW, will see their disposable income increase by 5.7 per cent and for a couple both earning the FMW with two children, their disposable income will increase by 5.5 per cent.

In its submissions to the AFPC, the Government submitted that the AFPC should grant an increase in minimum wages, so that those who rely on minimum wages share in the strong growth in prosperity in Australia.

There is no implication for wage inflation forecasts because the AFPC’s minimum wage decision is consistent with the assumptions on wage growth already factored into Budget forecasts.

In addition, the AFPC’s assessment of the impact of the determination on inflation was measured against a scenario where there was no increase in minimum wages.

The Government also submitted that any increase to the FMW be balanced against any potential impact on inflation, employment, the provision of a safety net and the financial needs of low paid employees.

The Government has committed to retaining the AFPC until 2010. From that date, minimum wages will be set by the Government’s new industrial umpire, Fair Work Australia.

16th June 2008

The New National Employment Standards announced.

The Prime Minister, Kevin Rudd and Minister for Employment and Workplace Relations Julia Gillard, today released the new National Employment Standards (NES).

The NES are a key element of the Rudd Government’s new modern workplace relations system and will come into effect on 1 January 2010.

The NES will ensure that all employees are protected by a strong safety net of fair minimum conditions that can’t be stripped away.

The NES will apply to all employees in the Federal system regardless of industry, occupation or income.

The NES were developed following extensive consultation and consideration of submissions to the exposure draft which was released on 14 February 2008.

129 submissions were received from a wide range of stakeholders, including: employee and employer groups; businesses; community organisations and individuals.

The Rudd Government’s consultative approach is in stark contrast to that of the previous Liberal government.

The NES will be simpler for Australian employers.

The Work Choices standard runs to 149 pages of complexity, provides only five minimum conditions and many of the protections provided are sub-standard.

The NES, in contrast provides 10 vital protections in just 50 pages.

The NES provide employers with the flexibility and simplicity they need while also ensuring employees’ key entitlements are protected.

The NES are:

The Government will shortly issue a revised Award Modernisation Request to the Australian Industrial Relations Commission (AIRC) attaching the NES to assist in its task of modernising awards.

The NES and award modernisation are integral components of the Government’s commitment to deliver a modern workplace relations system to benefit all Australians.

Legislation will be introduced into Parliament later this year to give effect to the Government’s commitment. The legislation will include other aspects of workplace relations relating to the NES including compliance, interaction with agreement making and future reviews.

The National Employment Standards in more detail can be found at www.workplace.gov.au

for the full booklet download here

28th March 2008

The Minister for Employment and Workplace Relations today proclaimed with the Governor General the Workplace Relations Amendment (Transition to Forward with Fairness) Act 2008.

The legislation reflects the Rudd Government's election commitments, which were set out in Forward with Fairness and the Forward with Fairness Implementation Policy Plan. The key previsions of the Transition to Forward with Fairness Act:

Following the nominal expiry date of an AWA made under Work Choices, it may be terminated unilaterally by either the employer or employee on 90 days’ notice. The employee would then be entitled to the benefit of the whole of an applicable collective agreement or award in the workplace.

As requested by employer and employee representatives, the Act will allow parties to retain pre-Work Choices certified agreements and to extend or vary those agreements in limited circumstances to avoid a odouble transition prior to the commencement of the Government’s new workplace relations system in 2010.

The Government will introduce its substantive workplace relations reforms into Parliament later this year after extensive consultation, to ensure that the Rudd Government's new workplace relations system is fair, flexible and productive.

27th March 2008

As of midnight 27th March 2008 no new workplace agreements can be made or signed. The legislation was officially signed off today.

20th March 2008

The bill to abolish any implementation of new workplace agreements was passed through the senate today.

Parliament has agreed that there will be laws in this country which mean there will be no new Australian Workplace Agreements made. It's the beginning of the end of Work Choices and will deliver the end of Work Choices in the next piece of legislation.

One of the amendments, allowing an easing of arrangements for the signing of Interim Transitional Employment Agreements (ITEAs), meant statutory individual agreements could go on forever.

The amendment would allow eligible employers and employees to continue under ITEAs even after the permanent arrangements were brought in next year.

17th March 2008

The federal government is moving to have its workplace relations legislation rubber stamped by the end of the week.

Labor's transition bill to abolish Australian Workplace Agreements (AWAs) will pass through the lower house on Monday.

A Senate inquiry into the laws will also report to Parliament on Monday.

Workplace Relations Minister Julia Gillard said the government wants the bill passed before Easter but is willing to amend the legislation if worthwhile recommendations are made.

"We anticipate that Labor's bill will go through the House of Representatives in the middle of the day," Ms Gillard told ABC Radio.

"The Senate inquiry will report and we will be asking the Senate to deal with the legislation so that it is finalised before Easter."

The committee overseeing the Senate inquiry has studied around 60 submissions and has travelled around the country collecting evidence.

"It may be that the Senate inquiry does come up with some technical advice that is worth listening to, and we will be happy to consider their report when we receive it," Ms Gillard said.

"We have always been open to making technical or clarifying changes which were in accord with Labor's legislation.

"Our policy is going to be delivered, it's going to be delivered in full, and we wouldn't count any amendments that were different from our policy."

The federal opposition has said it would support Labor's legislation.

Opposition spokeswoman for workplace relations Julie Bishop said the inquiry has raised serious concerns in relation to the building industry and wants the laws redrafted.

"Construction is done on a project basis, people are employed for the life of the project and Labor's transition arrangements don't take into account that kind of employment contract," Ms Bishop told ABC Radio."While I'm reading the evidence I am coming to the view that the bill needs serious redrafting.

"Hopefully the Senate report will highlight the shortcomings and the government will analyse the evidence before the Senate inquiry and will redraft the bill."

Interview on ABC radio

21st February 2008

New workplace relations laws, computers in schools policy.

In a radio interview Julia Gillard explains some of the changes that will be introduced in the time leading up to the complete implementation of the new Fair Work Australia policy..

......We are going to have a two year transition period but perhaps if I explain what it will be like when the system is in full operation. You will go to work and you will have some choices about how you work with your employer to define your employment conditions. You will be able to make an individual common law contract if you want to. Significantly with a common law contract, you’ve always got to get better than the safety net. So you know that you will get our ten National Employment Standards, guaranteeing your basic conditions. And if you earn $100,000 or less and most people do, then you will also get a safety net of a modern simple award and your contract can build on those two things but it can’t take any element of them away. Or you can band together with your workmates, if that’s what you want to do and negotiate a collective agreement with your employer .....

For the complete interview go here

14th February 2008

The new 'Forward with Fairness' bill was introduced to parliament today. The new workplace relations amendment (or Transition to Forward with Fairness) is the first step towards the new Labour Governments improved IR laws.

The Bill gives effect to key Rudd Government election commitments, as set out in Forward with Fairness and Forward with Fairness Policy Implementation Plan.

To read the complete speech transcript go here.

1st January 2008

Currently there have been no changes to the industrial relations laws so those set out under the Howard governments 'Work Choices' policy still apply.

We will have updates to any information regarding changes posted here as they occur. Until then we can provide the information given regarding the new Fair Work Australia policy proposed by Prime Minister Rudd and the new Labour government.

In January 2010 the new Fair Work Australia policy will be implemented, replacing the current work choices (‘workchoices Australia’). In the lead up to this there will be changes made to these current Work Choices Australia industrial relations laws.

FAIR WORK AUSTRALIA POLICY PRESS RELEASE DECEMBER 2007 DOWNLOAD (PDF)

Go to The Basics to view the major changes.