In a speech to the National Press Club on 18 October 2017 Shadow Employment and Workplace Relations Minister Brendan O’Connor outlined his vision for workplace relations reform for a potential Labor government.

Drawing on a number of policies taken to the 2016 election, and also the recent recommendations of the Senate Inquiry into so called “corporate avoidance” of the Fair Work Act 2009, Mr O’Connor took the opportunity to build a platform focusing on:

• Addressing inequality and the rise in what Labor describes as “insecure work”;
• Closing the gap between high income earners and the rest of Australia;
• Restoring penalty rates;
• The effect on “divisible work” in reducing wages and workers bargaining power;
• The decrease in enterprise bargaining and increase of award reliant employees;
• Reforming existing laws for the 21^st. century.

Some of the key commitments contained in the announcement include:

• Legislative reform to prevent employers forcing their workers into “sham contracting arrangements to avoid direct employment”;
• The introduction of a national labour hire licensing scheme;
• Compulsory director identification numbers for company directors and increasing penalties for phoenixing;
• Reforming the definition of casual;
• Greater restriction on enterprise bargaining arrangements which may involve:
  • further limitations (if not a complete restriction) on the capacity for an employer to terminate enterprise agreements;
  • requiring that the workers who vote on an enterprise agreement must be representative of the workers ultimately covered by an agreement (although little detail is contained about what constitutes being representative);
  • providing the capacity of unions to apply to the Fair Work Commission (FWC) to renegotiate “sham” enterprise agreements.

Mr O’Connor also announced that Labor would move to establish a senate inquiry into the future of work, focusing on the future of workers. Last week, parliamentary debate included the establishment of a select committee to investigate the future of work and workers, looking particularly at:

• The future earnings, job security, employment status and working patterns of Australians;
• The different impact of that change on Australians, particularly on regional Australians, depending on their demographic and geographic characteristics;
• The wider effects of that change on inequality, the economy, government and society;
• The adequacy of Australia’s laws, including industrial relations laws and regulations, policies and institutions to prepare Australians for that change;
• International efforts to address that change; and,
• Any related matters.

It is proposed that this committee report in June 2018.

While Mr O’Connor’s announcements are broadly consistent with previous policy announced by Federal Labor, AREEA notes with some concern the commentary around enterprise bargaining, including what the Shadow Minister refers to as “gaming” of the Fair Work system. At this stage there is limited information about the details of any proposed reforms, with the next federal election still some way off.

Resources and energy sector employers operate in an industry where projects are constantly developing and changing, and there is a need to quickly ensure labour availability at all phases of any given project. The cyclical nature of this industry means that while a small number of workers may be employed at a time relevant to a new parcel of work when enterprise bargaining is engaged in, any agreement may ultimately apply to a larger number of workers if and when more workers are engaged. This is not gaming the system. This is one of the realities of the industry. Employing a larger workforce and growing business is critical to ensure businesses survive and thrive.

In an industry where terms and conditions of employment are, proudly, well above the national average, it is imperative that employers in the resources and energy sector have access to a suite of options in enterprise negotiations. This level of certainty is critical to encouraging international investment for new projects and the further development and expansion of existing projects.

AREEA will continue to work with the Government and opposition to educate and inform all political stakeholders about the importance of the resources and energy sector to the nation’s economy, and how a sensible, practicable, adaptable and accessible bargaining framework is critical to all businesses and workers involved in the sector.