The Morrison Government today agreed to remove from its IR reform bill (related story) a proposal that would have allowed the Fair Work Commission (FWC) to approve enterprise agreements that did not meet the Better Off Overall Test (BOOT) for businesses distressed by the COVID-19 pandemic.

Attorney-General and Minister for Industrial Relations, Christian Porter said the Government would not continue pursing changes to s189 of the Fair Work Act, which already allows the FWC to approve non-BOOT compliant agreements if “in the public interest”.

Mr Porter said the relevant amendment would be moved in the House of Representatives when debate resumes this week.

“Removing the modest amendment to the s189 provision – a provision that Labor placed in the Fair Work Act in 2009 – also blows away the smokescreen that Labor has been hiding behind to justify its opposition to the wider package of reforms, including measures it knows will deliver greater protections for workers, help to re-grow jobs and drive up wage growth,” he said.

Mr Porter said Labor must now explain why it will oppose these “common sense measures, which they have previously expressed public support for”.

AREEA’s view on the now-dumped BOOT proposal is that it was of little relevance to resources and energy employers.

The existing powers at s 189 of the FW Act have been barely used over the past decade, and there are far more practical and relevant improvements to the IR system in the legislation for resources and energy employers.

For example, the Bill still contains amendments to the BOOT that would ensure the FWC does not consider hypothetical scenarios not reasonable foreseeable by parties to the agreement, during the approvals process. Further, the requirement that the FWC be satisfied employees “genuinely agreed” to an agreement will be made far more practical.

AREEA continues to advocate for the passage of these sensible, balanced industrial relations changes.