INDUSTRIAL RELATIONS – AUSTRALIA

RBA admits it underpaid staff $1.15m

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Original article by Michael Read
The Australian Financial Review – Page: 4 : 15-Jun-23

PwC has completed its review of wage underpayments at the Reserve Bank of Australia. The review was commissioned after the central bank apologised to affected staff. PwC has found that 1,173 current and former RBA employees had been underpaid a total of $1.15 million, excluding interest. The RBA’s head of human resources Karlee Hughes has indicated that more than 20 per cent of affected staff had been underpaid by $150 or less; she added that the RBA takes paying its staff correctly very seriously, and it is "genuinely sorry" that the underpayment occured.

CORPORATES
RESERVE BANK OF AUSTRALIA, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Business cuts a deal on workplace rules

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Original article by Jennifer Hewett
The Australian Financial Review – Page: 2 : 15-Jun-23

The Australian Resources & Energy Employer Association still opposes the proposed ‘same job, same pay’ laws for labour hire workers. However, CEO Steve Knott says AREEA believes that the federal government will legislate the changes in some form, regardless of the widespread opposition. AREEA will therefore shift its focus to influencing how the policy is implemented. In contrast, AREEA had funded its own advertising campaign against the multi-employer bargaining provisions in the government’s first tranche of industrial relations reforms.

CORPORATES
AUSTRALIAN RESOURCES AND ENERGY EMPLOYER ASSOCIATION

Svitzer agrees to one-year outsourcing ban

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 13 : 14-Jun-23

Some 63 per cent of Svitzer Australia employees have voted in favour of the tugboat operator’s new four-year enterprise agreement. The Maritime Union of Australia withdrew its support for the agreement in the lead-up to the ballot, although the deal had the support of the Australian Institute of Marine & Power Engineers. Svitzer has agreed to some concessions after nearly four years of negotiations; amongst other things, it has given an undertaking to not outsource work performed by its employees during the first year of the agreement.

CORPORATES
SVITZER AUSTRALASIA SERVICES PTY LTD, MARITIME UNION OF AUSTRALIA, THE AUSTRALIAN INSTITUTE OF MARINE AND POWER ENGINEERS

IR reforms will blast $13bn hole in economy

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Original article by Geoff Chambers
The Australian – Page: 1 & 5 : 14-Jun-23

Modelling undertaken by the Centre for International Economics highlights the potential impact of the federal government’s second tranche of industrial relations reforms on productivity in the mining sector. The modelling, which was commissioned by the Minerals Council of Australia, is based on a one per cent fall in productivity; it concludes that the restrictions on the mining sector and supply chains resulting from the reforms could potentially reduce economic activity by $13bn a year and reduce consumption in the mining sector by $6bn. MCA CEO Tania Constable says a one per cent hit to productivity is a "conservative estimate". The CIE also modelled several other scenarios.

CORPORATES
CENTRE FOR INTERNATIONAL ECONOMICS, MINERALS COUNCIL OF AUSTRALIA

25pc childcare pay rise could be unsustainable

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 5 : 7-Jun-23

Unions and early childhood education providers have applied to the Fair Work Commission for authorisation to negotiate pay deals via the federal government’s new multi-employer ‘supported bargaining’ stream. The proposed pay rise of 25 per cent would apply to 65 employers in the sector and about 12,000 early childhood educators. However, Australian Industry Group CEO Innes Willox says a big concern is that other employers will ultimately be "roped into" the pay deal, despite not being involved in the negotiations.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, THE AUSTRALIAN INDUSTRY GROUP

Childcare first to test new workplace laws

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Original article by Ewin Hannan, Geoff Chambers
The Australian – Page: 7 : 6-Jun-23

United Workers Union national secretary Tim Kennedy says unions and around 50 childcare employers are to lodge an application with the Fair Work Commission to enter into multi-­employer bargaining under the federal government’s new industrial relations laws. The government is expected to seek to be a party to the proceedings, as it would ultimately have to fund any pay rise that results from the bargaining process. Employment and Workplace Relations Minister Tony Burke says he expects the new multi-­employer bargaining laws to be used in sectors that have not been able to get access to enterprise bargaining.

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UNITED WORKERS UNION, AUSTRALIA. DEPT OF EMPLOYMENT AND WORKPLACE RELATIONS

Same job, same pay IR reforms could hit public service

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Original article by Geoff Chambers, Ewin Hannan
The Australian – Page: 1 & 4 : 31-May-23

The federal government continues to come under scrutiny over its proposed ‘same job, same pay’ policy for labour hire workers. Natalie James, the head of the Department of Employment & Workplace Relations, has told a senate estimates hearing that these laws are likely to cover the public sector. Analysis of AusTender contracts shows that the government has become a major user of labour hire firms, spending more than $1.2bn on such contracts since the federal election in May.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT AND WORKPLACE RELATIONS

Wesfarmers warns on wages, jobs

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Original article by John Kehoe, Carrie LaFrenz, James Thomson
The Australian Financial Review – Page: 1 & 4 : 31-May-23

Treasury secretary Steven Kennedy has told a Senate estimates hearing that there are no signs that a wage-price spiral is emerging in Australia. He added that it is usual for wages growth to accelerate during an upswing in the economic cycle. Meanwhile, Wesfarmers CEO Rob Scott has warned that increasing the minimum wage by more than five per cent would deter businesses from investing and taking on additional staff. He adds that other risks to the economy include the federal government’s second tranche of industrial relations reforms and the Victorian government’s payroll tax changes. The Fair Work Commission is slated to announce its decision on the minimum wage increase on Friday.

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AUSTRALIA. DEPT OF THE TREASURY, WESFARMERS LIMITED – ASX WES

Union fights BHP labour-hire pay

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 2 : 24-May-23

The Mining & Energy Union has applied to the Fair Work Commission to hold a ballot on protected industrial action against BHP regarding its in-house labour hire firm. The proposed industrial action by employees of BHP’s Operation Services division follows nearly six months of negotiations over a new pay deal, which has been rejected by a majority of the 4,500-strong workforce. The union also wants the FWC to reject a new maintenance agreement that was backed by a majority of OS staff in March; the union contends that BHP did not properly explain to workers the difference in pay and hours between the industry award and this agreement.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MINING AND ENERGY UNION, AUSTRALIA. FAIR WORK COMMISSION

BCA pushes against same job, same pay law

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 6 : 17-May-23

The Business Council of Australia contends that the federal government’s proposed ‘same job, same pay’ laws for labour hire firms are not necessary. The BCA has used its submission to a consultation paper on the reforms to argue that they could have unintended consequences, such as the increased use of casual labour and fewer enterprise agreements. The BCA also says the reforms should be restricted to traditional labour hire firms rather than including in-house ones such as BHP’s Operations Services division. The labour hire changes will be a key part of the government’s second tranche of industrial relations reforms.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA