THE two yearly review of modern awards is currently underway and involves issues of importance to AREEA members employing apprentices, trainees and juniors.
A Full Bench of Fair Work Australia (FWA) is set to consider a range of applications to vary all modern awards to include enhanced terms and conditions for apprentices, trainees and juniors.
While the resource industry largely operates in an enterprise bargaining context, any expansion of the minimum terms and conditions on which those agreements are based is an important issue.
Read on to learn about the likely impact on your business.
Review proceedings to date
Under the transitional legislation, FWA is required to review all modern awards two years after they were first introduced. The Review is intended to be limited to whether the modern awards achieve the modern awards objective and are operating ‘effectively, without anomalies or technical problems arising from the Part 10A award modernisation process’. However, FWA may make a determination varying any of the modern awards in any way it considers appropriate to remedy any issues identified in the Review.
Some 46 applications have been made to vary all modern awards as part of this Review process, by increasing the terms and conditions for apprentices, trainees and juniors across a wide range of issues including probationary periods, training conditions and redundancy.
Last Friday, 26 October 2012, AREEA appeared at a mention and submitted that the wide range of applications sought are outside FWA’s jurisdiction. The Full Bench has declined to hear the jurisdictional objections of employer groups first, and instead will proceed to hear both the jurisdictional and substantive issues together.
A further mention will occur in December, with submissions in reply due in February 2013.
Enhanced terms and conditions for apprentices, trainees and juniors
Of most concern to AREEA’s members will be the applications by the ACTU, QTERC (and, for the black coal industry, the AMWU). We have summarized the key variations sought below.
Pay increases
The ACTU has applied to significantly increase minimum wage rates for both junior and adult apprentices in at least 48 modern awards. Those awards include the Black Coal Mining Award, Mining Industry Award and the Hydrocarbons (Upstream) Award along with several others that are relevant to the resource industry.
Under the ACTU application, junior apprentices would have their minimum pay increased by 15% of the trades rate (from 45% to 60%), while adult apprentices would be paid the minimum trades rate and guaranteed no reductions in pay from any previous roles held.
Enhanced terms and conditions
The ACTU application also seeks to insert apprentice terms and conditions into modern awards including: training requirements, probationary periods, redundancy pay, hours of work, fees and textbooks, travel payments, block release and suspension. These conditions are currently dealt with primarily by state legislation and/or the training contract.
An application by the Queensland Training & Employment Recognition Council seeks to provide a mechanism for competency-based progression in all modern awards, which could result in accelerated completion time for apprenticeships. However, AREEA understands the Council no longer exists and so that particular application may not proceed.
AREEA members’ involvement
A number of AREEA’s members have indicated serious concerns regarding the ACTU’s application and its potential impact on their operations because of the potential to significantly enhance the minimum standards for pay and conditions of apprentices.
For advice on these issues and how they impact your organization, or to register your interest in tailored updates on the Review, please contact Amanda Mansini, AREEA Director of Legal and Migration Services, on (03) 9614 4777 or at [email protected].
