Workplace Relations Act 1996, as amended by the Workplace Relations Amendment Act 2005, popularly known as Work Choices, was a Legislative Act of the Australian Parliament that came into effect in March 2006 which involved many controversial amendments to the Workplace Relations Act 1996, the main federal statute which regulated industrial relations in Australia.
Work Choices was passed by the Howard Government in 2005 and was claimed to improve employment levels and national economic performance by dispensing with unfair dismissal laws for companies under a certain size, removing the "no disadvantage test" which had sought to ensure workers were not left disadvantaged by changes in legislation, and requiring workers submit their certified agreements directly to Workplace Authority rather than going through the Australian Industrial Relations Commission. It also significantly compromised a workforce's ability to legally go on strike, requiring workers to bargain for previously-guaranteed conditions without collectivized representation, and significantly restricting trade union activity and recruitment on the work site.
The passing and implementation of the new laws was strongly opposed by the left side of politics, particularly the trade union movement. Critics argued that the laws stripped away basic employee rights and were fundamentally unfair. The Australian Council of Trade Unions consistently ran television advertisements attacking the new laws.
Introduction of the Bill into Parliament
The Workplace Relations Amendment (Work Choices) Bill 2005 (Cth) was introduced into the Australian House of Representatives on 2 November 2005 by the Minister for Employment and Workplace Relations, Kevin Andrews.
The Australian Labor Party claimed it was not provided with enough copies of the Bill when it entered the Parliament. They mounted a campaign against the Bill in Parliament throughout the day. During Question Time, Opposition members continually interjected while Government members were speaking, leading the Speaker (and later the Deputy Speaker) to remove 11 of them.
The Bill passed through the House of Representatives on 10 November and was introduced into the Senate later that day by Special Minister of State, Senator Eric Abetz. The Bill was passed, with amendments, by the Senate, by a vote of 35-33 on 2 December 2005.
The Bill received the Royal Assent on 14 December and the parts concerning the Australian Fair Pay Commission, wages for school based trainees and apprentices, and redundancy pay for small employers became enacted immediately from that date
Opposition to the changes
In response to the Howard Government's Work Choices package, the Australian Council of Trade Unions, the peak association for Australian trade unions, launched its "Your Rights at Work" campaign opposing the changes. The campaign has involved mass rallies and marches, television and radio advertisements, judicial action, and e-activism.
The week of action culminated on Friday 1 July 2005 with a "SkyChannel" meeting of union delegates and members organised by Unions NSW. The meeting was followed by a large rally in Sydney and events in regional areas.
Campaigns
The ACTU's media campaign triggered a government counter-campaign promoting the reforms. Stage one of the government campaign preceded the release of the legislation and cost approximately $46 million, including advertisements from both the government and the BCA, information booklets and a hotline.
Government polling of the period August 2005 - February 2006, not released until March 2008, revealed that the government's advertising campaign failed to make workers less apprehensive about Work Choices.
Scope of the System
Before the commencement of Work Choices the Commonwealth relied on the concilliation and arbitration power of which provides that Commonwealth may make laws with respect to "conciliation and arbitration for the prevention and settlement of industrial disputes extending beyond the limits of any one State."
The Howard Government sought to bring as many employees under Work Choices as was within its constitutional powers.
Relying on the corporations power of Section 51(xx), the Howard Government extended the coverage of the federal industrial relations system to an estimated 85% of Australian employees. All employees of "constitutional corporations" (i.e. trading, financial, and foreign corporations) are covered by the Work Choices system. Other constitutional powers used by the Federal Government to legislate industrial relations matters include the Territories power to cover the Australian Territories, including the external territories of the Christmas and Cocos Islands, the external affairs powers, the interstate and overseas trade and commerce power, and the powers of the Commonwealth to legislate for its own employees. Victoria voluntarily referred its industrial relations powers to the Commonwealth in 1996.
Significant changes
[edit]Changing dismissal protection laws for most employees
Work Choices contains provisions relating to both unfair dismissal and unlawful termination, which are separate matters. The Australian Industrial Relations Commission (AIRC) retains some of its role in hearing unfair dismissal and unlawful termination cases, but increased the emphasis on mediation and conciliation. It also reduced the timeframe within which employees are able to lodge such claims; claims must be lodged within 21 days from the date of termination. Employees can apply for an extension of this timeframe,but a review of published decision shows that extensions are infrequently granted. Fees apply for applications, currently $55.70.
Both unfair dismissal and unlawful termination claims go through an initial hearing and compulsory conciliation conference at the AIRC. Only when the conciliation has been unsuccessful and a conciliation certificate issued can the claim proceed to the next step. For unfair dismissal claims, the claim proceeds to arbitration by the AIRC, where a Member of the Commission may issue a binding decision. For unlawful termination claims, the claim proceeds to a court with appropriate jurisdiction such as the Federal Court or the Industrial Division of the Federal Magistrates Court.
Legacy
Kevin Rudd took over the Australian Labor Party leadership on 4 December 2006, and in the process reaffirming his opposition to Work Choices. As Labor won government at the 2007 federal election, it will retain a federal rather than states-based system. Additionally, it plans to phase out Australian Workplace Agreements (AWAs) over a period of years with a preference of collective agreements and awards with an exclusion to those earning over $100,000. Unfair dismissal laws would be restored to all businesses, however, employees joining companies with under 15 employees will be placed under a twelve month probationary period. Restrictive right of entry rules in to workplaces for unions introduced under Work Choices will remain and secret ballots (rather than open ballots) to decide on carrying out strikes will continue, which would become banned except during periods of collective bargaining.The dismantling of the group of industrial relations bodies created by the government would also occur, and in their place a service known as "Fair Work Australia" would be created.
Kevin Rudd used part of the 2007 election debate to argue that the Liberal Party was being influenced by the H. R. Nicholls Society to make further reforms to industrial relations, citing Nick Minchin's attendance to last year's H. R. Nicholls Society conference, where he told the audience that the coalition knew its reform to Work Choices were not popular but the process of change must continue, and that "there is still a long way to go... awards, the IR commission, all the rest of it..." The Australian Labor Party stated that "We know the HR Nicholls society supports the abolition of awards, supports the abolition of the minimum wage, supports the abolition of the independent umpire, the Industrial Relations Commission.
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