IR uncertainty in new awards

Friday, 15 January, 2010 - 00:00

ON January 1, one of the most significant changes to Australia’s industrial relations landscape in the country’s history came into effect.

In the two weeks since, the Chamber of Commerce and Industry WA has fielded more than 500 calls from owners and managers of small and medium-sized businesses about the new regime.

More than 200 calls had been received this week alone.

Figures obtained by WA Businesses News show that the number of calls concerning the new Fair Work national employment standards and industrial awards is almost double the number CCIWA received when WorkChoices was introduced in 2006.

CCIWA manager, workplace relations policy, Marcia Kuhne, said while she recognised the federal government’s efforts to inform employers about the raft of IR changes, a significant amount of uncertainty remained as to what it meant for business.

“Every single business is affected in some way, shape or form and we’re absolutely flat out,” she said.

“This data is only the tip of the iceberg. I don’t think it truly represents the amount of change and the amount of uncertainty that exists in business about what they need to do.

“I think it is a really important point to recognise that using the data we’ve got now, we haven’t looked at any period prior to WorkChoices, but if you compare it with WorkChoices, the number of calls we are getting now is significantly higher.

“That means that business is unprepared for the new modern awards and uncertain about how to implement them.

“There’s no doubt that the number of calls will increase over the next six months.”

Ms Kuhne said as the government condensed more than 1,500 awards to 130, the eight advisers manning CCIWA’s call centre phones had been flat out.

The most common concerns raised by members, apart from the modern awards, include contracts of employment, federal legislation and human resource management.

“People are asking, ‘What are all these changes?, Do I have to do anything?, What do I have to do?’,” Ms Kuhne said.

Council of Small Business Organisations of Australia chairman, Richard Brooks, said his organisation had experienced a similar spike in enquiries with regards to the new workplace relations regime.

He said traffic to the Fair Work for Small Business website, produced by COSBOA, Telstra Business and independent online employment relations service Workforce Guardian, had increased substantially since December.

“There has not been a lot of information ready for small business people and small business owners are generally more reactive to change, so we anticipate there will be a further increase in enquiries in the coming weeks with the need for support with regards to the new IR system for 12 months,” he said.