The Real Estate Employers Federation of Western Australia this week launched an education program for real industry principals to clarify concerns over new industrial relations legislation.
REEFWA, the peak body for real estate agency owners, ran a number of briefings to explain how the Federal Government’s Workplace Relations Amendment (WorkChoices) Bill 2005 will affect the industry.
As reported in WA Business News last week, the legislation will result in the abolishment of “commission-only employment contracts” and require real estate sales people to be paid a government legislated minimum hourly rate of $12.75.
In addition, the legislation will incorporate paid annual leave and paid sick leave entitlements for sales people.
The new legislation received Royal Assent in December 2005 and is set to become law in March. REEFWA believe it has the potential to become one of the most significant changes to the industry in WA.
The REEFWA briefing sessions were designed to provide licensees with details of the changes and the impact they will have on staffing arrangements, along with assistance on transitioning from existing commission-only contracts, and performance management issues.
Doug Ockerby of Ockerby Real Estate attended one of the briefings and said there were still a number of issues that remained unresolved.
“There is no doubt that this legislation will bring about changes to the industry and specifically how we employ people,” he said.
“It will result in smaller sales teams and help us become better managers, but it will also impact on owners’ cash-flows, so there a lot of concerned employers wanting to know the nuts and bolts of how this is going to work.”
It is expected the hourly rate of pay will be paid on a debit and credit basis out of commission from sales made by real estate sales people.
The sales representative will be paid for hours worked. This amount will be offset from commission generated by future sales.
The agency principal would then have to address performance management issues for under performing members of their sales team who are not at least meeting a salary break even point with commission from sales.
The Real Estate Institute of Western Australia will also run information forums for their members in coming weeks.
