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Industrial Legislation Update

04 December 2003

A report given to the ACTU Executive provides an update on Industrial Legislation in the Federal Parliament.

The Building Industry Inquiry

Following the release of an exposure draft and a call for submissions, the Federal Government has introduced the Building and Construction Industry Improvement Bill 2003.

As expected, the Bill contains most of the draconian recommendations of the Cole Royal Commission, including a ban on pattern bargaining, greatly restricted right of entry and protected industrial action and increased penalties for breach.

A Senate inquiry has been established, chaired by Senator George Campbell. It will be holding public hearings commencing on 10 December, and continuing in January and February 2004. The inquiry's terms of reference are wide ranging, and include most of the issues affecting the building industry. Although the formal closing date for submissions was 30 November, the ACTUAL understands that submissions will be accepted at least up to Christmas.

Workplace Relations Amendment (Termination of Employment) Bill 2002

The Termination of Employment Bill seeks to extend federal unfair dismissal legislation to cover most employees, overriding state laws, as well as severely restricting the right to make applications and reducing the remedies available to successful applicants. The Bill was rejected by the Senate in August. If it is rejected again it could be another trigger for a double dissolution. The Democrats voted against the Bill after the defeat of their amendments, which included an expanded definition of "employee" to include dependent contractors and including a role for members of state tribunals.

The Government has not yet re introduced the Bill. The ACTU understands that the Democrats have not changed their position on this Bill.

Workplace Relations Amendment (improved Remedies for Unprotected Action) Bill 2002; Workplace Relations Amendment (Codifying Offences) Bill 2003; Workplace Relations (Compliance with Court and Tribunal Orders) Bill 2003

The Senate Committee reported on these bills on 30 October. The Coalition Senators supported the bills and the ALP Senators opposed them. Senator Murray's report indicated that some elements of the bills, with amendments, could attract Democrat support, including provision for interim s127 orders, increased penalties for contempt type offences and some extension of disqualification. On the other hand, Senator Murray questioned the need for a specific offence covering breach of orders, and expressed concern about automatic disqualification from office. The ACTU will continue to discuss these issues with the Democrats.

Workplace Relations Amendment (Fair Termination) Act 2003

The Fair Termination Act came into effect on 27 November 2003. The Act extends the period after which regular casuals can make applications in relation to a harsh, unjust or unreasonable termination of employment from six to 12 months and reflects the former Regulation by providing that the employment must also have been regular and systematic, and that the employee would have had a reasonable expectation of continuing employment. The Government agreed to the following amendments proposed by the Democrats:

  • the various exclusions (including those for casuals, probationary employees, trainees and employees employed for a fixed period or task) do not apply to applications based on alleged unlawful termination of employment; and
  • where a casual has been employed on a regular and systematic basis for less than 12 months and ceases employment on the employer's initiative, but is re employed on a regular and systematic basis starting not more than three months after the initial cessation of employment, the total periods of employment can be considered in determining whether or not the employee has 12 months service for the purposes of the Act.

Workplace Relations Amendment (Better Bargaining Bill) 2003

The Better Bargaining Bill was introduced into the House of Representatives yesterday. It seeks to:

  • override the Federal Court decision in Emwest by totally prohibiting any industrial action during the term of a certified agreement;
  • allow the Commission to order a cooling off period to stop protected action during a bargaining period in circumstances including where:
  • it would be beneficial to the negotiating parties because it would assist in resolving the matters at issue; or
  • the industrial action is threatening to cause significant harm to a third party;
  • provide that action is not protected if it is in support of claims any of which do not pertain to the employment relationship (this is particularly designed for industries such as health and education);
  • prevent related corporations from being treated as a single employer for the purpose of bargaining; and
  • amend section 170MM to emphasise that action is not protected if taken in concert with persons who are not protected in relation to the same industrial action, such as where there is an industry wide stoppage.

It is likely that the Bill will go to a Senate inquiry next year.


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