What is award modernisation?
On 13 February 2008, the Minister for Employment and Workplace Relations requested that the AIRC modernise awards in an effort to create a comprehensive set of awards. The new modern awards are intended to:
- Reflect simple and understandable terms
- Reduce the regulatory burden on business
- Provide a fair minimum safety net of employee terms and conditions
- Be economically sustainable
- Promote flexible modern work practices and efficient and productive performance of work
- Be in a form that promotes collective enterprise bargaining.
Who is responsible for the award modernisation process?
The AIRC has been requested to create modern awards principally along industry lines but can also do so along operational (or occupational) lines. Given that there are more than 4300 different awards operating throughout Australia, it is logical that there will be a reduction in the number of awards that currently exist. The AIRC must consider the desirability of overlap in award coverage.
What terms and conditions will modern awards contain?
The proposed National Employment Standards (NES) will operate in conjunction with modern awards to provide minimum entitlements for award-covered employees. The NES may be cross-referenced by modern awards and may also be replicated in award content.
In effort to promote simplicity, modern awards will include ten types of matters, which include:
- Minimum wages (including wages for junior, disabled and other employees to whom training arrangements apply)
- Type of employment (including full-time, part-time, casual and shift-work)
- Arrangements for when work is performed (including hours of work, rostering, notice periods and rest breaks)
- Overtime rates
- Penalty rates (including penalty rates for unsocial, irregular or unpredictable hours, weekends or public holidays, and shift-work)
- Annualised wage or salary arrangements
- Allowances (including allowances for expenses, responsibilities or skills and work disabilities)
- Leave, leave loading and arrangements for taking leave
- Superannuation
- Procedures for consultation, representation and dispute settlement.
How long will the modernisation process take?
The AIRC is to complete the award modernisation process by 31 December 2009. To meet this deadline, the AIRC needs to identify priority industries or occupations for modernisation, develop a timetable for completion of the process and develop a proposed model flexibility clause.
The AIRC has proposed a draft list of priority industries as set out below. Priority industries expected to impact upon ARA members are highlighted:
- Aged Care Industry (excluding nursing)
- Clerical Occupation (with appropriate exclusions)
- Coal Industry
- Electrical Occupation (other than electricians covered by relevant industry awards)
- Gardening and Sportsground Maintenance Industry
- Graphic Arts Industry
- Higher Education Industry
- Hospitality Industry
- Information and Communication Technology (ICT) Industry
- Insurance Industry
- Metal Engineering and Associated Industries
- Nursing Occupation
- Poultry Processing Industry
- Racing Industry
- Rail Industry
- Retail Industry Rubber, Plastic and Cablemaking Industry
- Technical Services – Engineers and Scientists Occupations (with appropriate exclusions)
- Textile, Clothing and Footwear Industry
In addition to the above list, the statement sets out a draft timetable for completion of priority modern awards as set out below:
What does modernisation mean for the retail industry?
The ARA will be directly involved in the award modernisation process and will endeavour to ensure outcomes that cater to the best interests of our retail members.
While modernisation is only in its preliminary stage, the ARA will endeavour to achieve the following:
- Comprehensive yet simple modern industry award(s) that provide a single point of reference for members.
- Modern award(s) that cover employee types specifically relevant to the operational requirements of businesses within the retail industry;
- Cost-effective terms and conditions of employment for employers while maintaining a fair minimum safety net of entitlements for employees;
Retail discussion paper
The ARA has also enlisted the services of Professor Andrew Stewart who is a Professor of Law at Adelaide University and exclusively consults to Piper Alderman – a well respected law firm. Andrew has extensive experience in employment law and workplace relations and will be developing a discussion paper and draft modern award on behalf of the ARA for members in the retail industry.
The ARA is obtaining member views on award modernisation through Employment Relations Working Groups which are being conducted on an ongoing basis in effort to ensure member interests are taken into account.
Have your say!
Members are strongly encouraged to provide feedback to the ARA on matters including but not limited to the following:
- minimum wages (including wage rates for junior employees, employees with a disability and employeesto whom training arrangements apply), and:
- skill-based classifications and career structures; and
- incentive-based payments, piece rates andbonuses;
- type of employment, such as full-time employment, casual employment, regular part-time employment and shift work, and the facilitation of flexible working arrangements, particularly for employees with family responsibilities;
- arrangements for when work is performed, including hours of work, rostering, notice periods, rest breaks and variations to working hours;
- overtime rates;
- penalty rates, including for any of the following:
- employees working unsocial, irregular or unpredictable hours;
- employees working on weekends or public holidays;
- shift workers;
- annualised wage or salary arrangements that:
- have regard for the patterns of work in an occupation, industry or enterprise; and
- provide an alternative to the separate payment of wages, or salaries, and other monetary entitlements; and
- include appropriate safeguards to ensure that individual employees are not disadvantaged;
- allowances, including for any of the following:
- expenses incurred in the course of employment;
- responsibilities or skills that are not taken into account in rates of pay;
- disabilities associated with the performance of particular tasks or work in particular conditions or locations;
- leave, leave loadings and arrangements for taking leave;
- superannuation;
- procedures for consultation, representation and dispute settlement.
The ARA views it as critical that members take an active interest in award modernisation and contribute supporting information and views as much as possible. This is in effort to ensure the most desirable and suitable outcomes for members which can only be achieved through their support.
Further information
Members wishing to obtain further information in relation to award modernisation or wishing to provide feedback on this matter should contact the ARA Telephone Advisory Service or email information to employeerelations@ara.com.au.
