The Federal Government’s new industrial relations regime is likely to have a major impact on industries that employ sales staff on commission-only contracts, the real estate industry among them.
The Federal Government’s new industrial relations regime is likely to have a major impact on industries that employ sales staff on commission-only contracts, the real estate industry among them.
The Federal Government’s Workplace Relations Amendment (WorkChoices) Bill 2005 passed through the Senate and received Royal Assent in December of last year, with the date of proclamation set down for March 2006.
A number of changes will affect the real estate industry when the law takes effect, none more so than the requirement for all real estate salespersons employed by a trading corporation to be retained on a government legislated minimum hourly rate of $12.75.
The changes are not expected to affect businesses operating as sole traders or partnerships, but this only accounts for about five per cent of the industry in Western Australia, a number unlikely to change because of the tax implications.
As is the case across a range of industries, the predominant mood in the real estate industry is confusion over the changes rather than outright opposition.
A senior source at the Real Estate Institute of Western Australia told WA Business News the impact of the changes remained unclear and REIWA had been inundated with inquiries from members wanting to know how the changes will effect their business.
In response, REIWA has taken the unusual step of arranging forums for its members in Perth and Bunbury.
The forums will seek to clarify the potential effects of engagement of salespersons, and also address issues of best practice in the area of hiring and firing. Industry sources contacted by WA Business News said the changes, significant as they were, could bring about a positive change to the industry.
Ockerby Real Estate director Doug Ockerby said he looked forward to the IR changes.
“The changes will help make real estate be seen more as a profession. It will help us to be better managers and make everyone more accountable,” he said.
Another principal, from a major western suburbs agency, told WA Business News the changes could result in a shoring up of the sales force in the industry.
“The likelihood is that underperforming agents will no longer be financially viable for their employers, and as a result only those who have a long-term commitment to the industry will remain,” he said.
The confusion over the changes stems from a perceived lack of information and explanation from the federal government, which is felt by peak bodies such as REIWA and REEFWA, the Real Estate Employer’s Federation of Western Australia, and then flows on though their membership.
