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How Fair is Fair Work Australia?

Talk given April 2 to the HR Nicholls Society Conference

Full copy available as downloadable PDF

Available through the above link is a copy of a paper I presented on April 2 on ”Employee and Employer Rights and FWA regulations” at the HR Nicholls conference on How Fair is Fair Work Australia. Following are my conclusions.

“Since the GFC unemployment and underutilisation rates have fallen only to levels reached in the 2005-06 period of the Howard government despite the “boom” conditions being experienced by Australia. Of particular importance are the high underutilisation rates for youths, the increase since the GFC in long term unemployed, and the relatively high underemployment rate amongst lower skilled workers. These developments suggest the increased regulatory arrangements are already having adverse and unfair effects on the capacity of such workers to obtain jobs.    

The performance of the FWA tribunal to date also indicates that it has assumed the unfair role of its predecessor as a supposed protector of workers’ rights and as a body that gives credence to the perspective conveyed by trade unions. With its liberal interpretation of the legislation, the FWA tribunal has extended the regulatory coverage of the legislation. This has led to an increase in trade union activity despite the fact that union membership has considerably diminished in recent years and is now down to 14 per cent of private sector employees and 20 per cent of total employees. The recent announcements by the new head of the Australian Building and Construction Commission, and the Ombudsman, of inquiries or audits into sham-contracting illustrate further possible reductions in competition in the labour market. Unless corrective action is taken, a further increase is likely over time: government institutions with specific responsibilities tendency to expand their roles.

The outdated regulatory structure not only adds to employers’ costs but acts as a deterrent to employment and limits the scope for the improved productivity that was claimed by then Minister Gillard to be the main reason for the FWA. As such, its continuation operates unfairly and against the public interest”. 

Des Moore

Full copy available as downloadable PDF

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