State bid to expand IR powers

Western Australia’s business lobby has blasted state government plans to shake-up the industrial relations system, and called for residual workplace powers to instead be handed to the Commonwealth.

Industrial Relations Minister Bill Johnston said the government would move ahead with a number of recommendations, including the introduction of an equal remuneration framework in WA, and an expansion of the definition of 'employee' to include people in domestic service, remunerated by commission or earning percentage rewards.

It follows a report into the state’s industrial relations system announced in 2017 and released today, with WAa the only state to retain some industrial relations powers in addition to those of the federal government.

Consequently, WA has a higher minimum wage, and higher awards, than the rest of the country.

The introduction of legislation for equal remuneration orders would enable the WA Industrial Relations Commission to make determinations raising wages in historically female-dominated industries to make up for a perceived past disadvantage.

Such orders could be made without a male comparator.

The law would be modelled off an existing provision in Queensland, according to the review.

In that state, dental assistants were given an 11 per cent pay rise over two years in 2006, partly on the basis that employment in the industry was dominated by women and so it had been undervalued against other industries with similar skill requirements.

Chamber of Commerce and Industry of WA  chief executive Chris Rodwell said businesses and households would face increased costs if the review recommendations were implemented.

“Typically, businesses remaining within the state industrial relations system are small businesses that are the least resourced and do not have the advantage of being able to employ specialised staff to monitor compliance with their industrial relations obligations,” he said.

“CCI is particularly alarmed by the potential for union officials being able to access private homes under proposed right of entry amendments.

“It is completely inappropriate for unions to be able to make any right of entry into a private residence or for it to be possible for the WA Industrial Relations Commision to override an individual’s property rights.

“If the government proceeds with its plan to change the definition of an employee, it has the potential to capture households who engage the services of domestic workers such as gardeners, household cleaners, babysitters and home carers for a couple of hours a week.

“This creates significant uncertainty for households who may be unaware that if this recommendation is implemented their private home could be considered a workplace, requiring them to comply with employment legislation, including workers’ compensation, superannuation and workplace safety.”

Mr Johnston said this was the first round of a modernisation of industrial relations legislation, and that some of the changes were necessary to meet an international convention against forced labour.

"The government is committed to a fair safety net of wages and entitlements for all workers and these reforms will improve protections for workers across the state,” he said.

"We're joining the fight against modern slavery by making it possible for the federal government to sign up to a key international protocol to help combat it.

“The McGowan government strongly believes in equality, so we want to give the WA Industrial Relations Commission the power to consider applications from groups of workers, almost certainly women, on whether they are receiving equal pay.

"We oppose bullying in WA workplaces so we're proposing to introduce anti-bullying powers to the WA Industrial Relations Commission, which mirror those of the Fair Work Commission.

"Unlike the previous Liberal-National government, which spent almost $1 million on the Amendola Review and then left it on the shelf, our government is taking action."