THE Fair Work Amendment Bill 2014, which in its original form contained a number of AREEA’s key workplace reform priorities, has finally passed through the Senate this afternoon (13 October 2015), delivering some key wins for AREEA’s advocacy efforts.

While substantial changes were made in order for the government to get the legislation past the crossbench (summary of changes here), the amendments will most importantly deliver a mechanism to progress new project agreements (greenfields) when bargaining with trade unions stalls.

The changes to the greenfields agreement process are not exactly aligned to AREEA’s preferred model, but will provide a safety valve by allowing the Fair Work Commission to approve an employer’s proposed agreement if a deal cannot be reached within a six month timeframe.

In addition to the extended timeframe (from the original three months to six), AREEA continues to have concerns at the test for such agreements; that they meet or exceed ‘prevailing industry standards’. The impact and validity of this requirement will be tested as Australia competes for future investment within tightened global markets.

Nonetheless, the changes do break the deadlock in greenfields negotiations that AREEA has sought to alleviate for the past six years. Further, that the Abbott / Turnbull government persisted with reform in the greenfields area demonstrates the strength of our industry’s advocacy and the importance of new resource projects for Australia.

AREEA also welcomes the Senate voting to close a loophole in the bargaining system that allows unions to take strike action before genuine bargaining has commenced. This will finally see an end to the so-called ‘strike-first, talk later’ bargaining tactics of some unions.

Other amendments include to the areas of unpaid parental leave and unclaimed money. The greenfields, protected action and unpaid parental leave changes will all take effect the day after the Bill receives Royal Assent, likely to occur within the next few days.

Changes not progressed

AREEA is however very disappointed that other important reforms did not pass due to a lack of crossbench support.

Specifically, provisions that would have improved the following areas for employers were amended out of the final version of the Bill:

• Union access to workplaces (right of entry)
• Annual leave loading on termination
• Accrual of leave while on workers’ comp
• Individual flexibility arrangements (IFAs)
• Transfer of business
• Unfair dismissal hearings and conferences.

AREEA’s advocacy will continue in these areas, with union right of entry, leave loading on termination and individual flexibility being particular priorities long-identified by our members. This advocacy work will include the current Productivity Commission review which we hope will deliver opportunities for more fundamental workplace reform.

Workplace reform deadlock is broken

Despite our disappointment in the compromises necessary for the government to get the Bill through, the reforms passed today demonstrate AREEA and our industry’s success in influencing the workplace relations and political agenda in a very difficult policy climate.

Importantly, it has broken the lengthy deadlock on workplace reform and shown that Crossbench Senators are willing to help tackle fundamental problems with our IR system.

AREEA’s position is that today’s amendments must be the first step in overhauling the Fair Work Act, to better support the interests of employers and employees, and the wider Australian community.

For the Bill and its amendments, click here.

For an AREEA summary of the Bill, click here.

Please contact AREEA’s senior workplace policy adviser, Lisa Matthews, for further information about the Bill on (03) 6270 2256 or at [email protected]