WA’S industrial relations system could soon be run out of Canberra because many employers consider the WA Government’s proposed Industrial Relations legislation to be unworkable.
WA’S industrial relations system could soon be run out of Canberra because many employers consider the WA Government’s proposed Industrial Relations legislation to be unworkable.
Business groups such as the Chamber of Commerce and Industry and the Master Builders’ Association of WA and legal experts expect the switch to the Federal system because the State Government’s Industrial Relations Reform Bill is thought to be unattractive.
Employers are unhappy with many of the provisions that are included within the IR Reform Bill.
They believe the Employee-Employer Agreements will be unworkable, that the right of entry provisions for unions – including the ability to automatically inspect records – are ludicrous and that the need to make unions involved with collective agreements is unworkable.
And if a union believes its collective bargaining negotiations are not fruitful it
can force the WA Industrial Relations Commission to arbitrate.
Labour Relations Minister John Kobelke hopes to have the Bill made law by July.
Victoria’s industrial relations system came under Federal control during the 1990s because so many Victorian employers had entered that arena.
Under the Federal system, employers can use Australian Workplace Agreements or strike a certified agreement without union involvement to govern their workplace.
Union officials will not have an automatic right to examine all employee records under the Federal system and they are forced to adhere to the right of entry provisions in the relevant Federal Award.
AWAs are harder to set up than WA’s workplace agreements, are underpinned by the relevant Federal Award and involve a no-disadvantage test.
This test is easier to satisfy than the no-disadvantage test required to create EEAs and Federal Awards are simpler to meet.
However, only incorporated companies can access the Federal system, meaning many small businesses – which often use sole trader or partnership structures – could miss out.
However, they can opt to restructure their business as a sole-director company or into some other incorporated entity.
Jackson McDonald partner Maria Saraceni believes a lot of larger employers will be looking to switch to the Federal system.
“Small businesses are the ones that are going to find it harder to make the switch,” Ms Saraceni said.
Deacons Senior Associate Alistair Salmon said many companies would be assessing the industrial relations requirements and many would find the options available under the Federal system to be better than what would be becoming available under the State system.
Legal challenges could also flow if the WA Government’s Industrial Relations Reform legislation starts to affect industry.
BGC Construction general manager Gerry Forde said the company would “take the Government on in court” if the laws affected the way his company did business.
However, legal experts question whether there is any way business can seek recourse against the Government’s new laws.
Unlike Federal laws, State-based legislation cannot be challenged on constitutional grounds.
About the only avenue available seems to be to challenge the laws on right of association through the International Labour Organisation, because of the union bias in the Bill.
Business groups such as the Chamber of Commerce and Industry and the Master Builders’ Association of WA and legal experts expect the switch to the Federal system because the State Government’s Industrial Relations Reform Bill is thought to be unattractive.
Employers are unhappy with many of the provisions that are included within the IR Reform Bill.
They believe the Employee-Employer Agreements will be unworkable, that the right of entry provisions for unions – including the ability to automatically inspect records – are ludicrous and that the need to make unions involved with collective agreements is unworkable.
And if a union believes its collective bargaining negotiations are not fruitful it
can force the WA Industrial Relations Commission to arbitrate.
Labour Relations Minister John Kobelke hopes to have the Bill made law by July.
Victoria’s industrial relations system came under Federal control during the 1990s because so many Victorian employers had entered that arena.
Under the Federal system, employers can use Australian Workplace Agreements or strike a certified agreement without union involvement to govern their workplace.
Union officials will not have an automatic right to examine all employee records under the Federal system and they are forced to adhere to the right of entry provisions in the relevant Federal Award.
AWAs are harder to set up than WA’s workplace agreements, are underpinned by the relevant Federal Award and involve a no-disadvantage test.
This test is easier to satisfy than the no-disadvantage test required to create EEAs and Federal Awards are simpler to meet.
However, only incorporated companies can access the Federal system, meaning many small businesses – which often use sole trader or partnership structures – could miss out.
However, they can opt to restructure their business as a sole-director company or into some other incorporated entity.
Jackson McDonald partner Maria Saraceni believes a lot of larger employers will be looking to switch to the Federal system.
“Small businesses are the ones that are going to find it harder to make the switch,” Ms Saraceni said.
Deacons Senior Associate Alistair Salmon said many companies would be assessing the industrial relations requirements and many would find the options available under the Federal system to be better than what would be becoming available under the State system.
Legal challenges could also flow if the WA Government’s Industrial Relations Reform legislation starts to affect industry.
BGC Construction general manager Gerry Forde said the company would “take the Government on in court” if the laws affected the way his company did business.
However, legal experts question whether there is any way business can seek recourse against the Government’s new laws.
Unlike Federal laws, State-based legislation cannot be challenged on constitutional grounds.
About the only avenue available seems to be to challenge the laws on right of association through the International Labour Organisation, because of the union bias in the Bill.
