LONGSTANDING and well-respected Vice President of the Fair Work Commission, Graeme Watson, has written to Governor-General Peter Cosgrove and Minister for Employment Michaelia Cash advising of his resignation.

VP Watson’s unexpected resignation, effective at the end of February, represents the second senior FWC member to have recently left the tribunal well before their statutory retirement date, after Senior Deputy President Peter Richards resigned in September 2016.

AREEA expects that some of VP Watson’s matters will be reallocated to other members of the tribunal.  Depending on the nature of the matter, parties may be permitted to request reallocation to a particular Commission member.  AREEA will assist in this process where appropriate.

Controversial resignation raises need for reform

The timing and manner of VP Watson’s early resignation has raised serious questions about the operation, effectiveness and relevance of the Fair Work Commission, which is expected to renew debate on reforming the tribunal.

News of his resignation was first reported by the Australian Financial Review yesterday, which also published details of a letter written by the outgoing VP to Minister for Employment Michaelia Cash outlining grave concerns with the way workplace relations is regulated and administered in Australia.

“I have made this decision because it is increasingly clear to me that the operation of the workplace relations system is actually undermining the objects of the Fair Work legislation,” the AFR reported VP Watson as writing to Minister Cash.

“I do not consider that the system provides a framework for co-operative and productive workplace relations and I do not consider that it promotes economic prosperity or social inclusion. Nor do I consider it can be described as balanced.”

Support for Watson widespread

Following news of his resignation, support for VP Watson flowed in from members of the industrial relations community, business representatives and political leaders including former Prime Minister Tony Abbott and former Employment Minister Eric Abetz.

AREEA chief executive Steve Knott was among the first industry leaders to recognise VP Watson’s contribution to workplace relations in Australia.

“Vice President Watson is well respected by all users of Australia’s workplace system and, in almost 10 years’ service to the employment tribunal, has proven to be fair, objective and pragmatic in his application of Australia’s workplace relations laws,” Mr Knott said.

However Mr Knott, like others, noted that the issues contained within VP Watson’s letter raised serious concerns for Australia’s workplace system.

“While VP Watson’s resignation is a real loss to the Fair Work Commission, of even greater concern is the dysfunction in the tribunal and our workplace laws that has prompted the early resignation of one of its most senior and widely respected members,” Mr Knott said.

Many of the concerns outlined by VP Watson to Minister Cash echo those detailed by AREEA in a letter to the Minister last October, which included:

• Increasing evidence that the FWC is dysfunctional, not serving users well and appearing to pursue political agendas rather than assisting constructive workplace relations outcomes.
• The growing need for an independent appeals tribunal to ensure greater rigour and consistency in the decisions of the FWC, including that its members respect established Full Bench principles.
• The application of the Fair Work Act’s unfair dismissal and adverse action provisions seeing employees rewarded for making speculative claims against their employers, even where their actions clearly justify dismissal from their workplaces.
• The failure of enterprise bargaining to support productivity and industrial harmony in Australian workplaces, and instead rewarding unions for threatening and taking strike action.
• Increasing instances where the FWC is not approving agreements based on technicalities such as minor typos in forms or documents incorrectly stapled together.

Implications for employers

The issues raised in the Vice President’s resignation letter add further weight to previous calls from the business community, led by AREEA, for the government to conduct an urgent review of the Fair Work Commission, its structures, powers and decision making.

The serious problems identified by VP Watson also reaffirm the importance of the government acting on the Productivity Commission’s 2015 review of Australia’s workplace relations framework, and implementing the majority of its recommendations for reform during 2017.

On behalf of our national membership, AREEA will continue to actively pursue workplace relations reforms that will better support resource employers in their productivity and competitiveness.

Click here to read AREEA’s press release on VP Watson’s resignation.

Click here to learn more about AREEA’s workplace relations reform priorities.

Any members with matters currently before Vice President Watson should contact your AREEA workplace relations specialist for advice on managing the news of his resignation.