

Andrew Stewart - Wages and women top Albaneses IR agenda: the big question is how Labor keeps its promises
June 5, 2022
Industrial relations issues were front and centre when federal Labor last won office from opposition in 2007. The backlash against John Howards Work Choices reforms cost both his government and his own seat. Kevin Rudd and Julia Gillards detailed Forward with Fairness policy provided a blueprint for the Fair Work Act that is still in force today.
Workplace issues were nothing like as prominent in the 2022 election. Still, Labor campaigned on the need to address three key issues: wage stagnation, insecure jobs, and gender inequality.
Lifting wages will be a priority for the Albanese government, to help ease the cost of living. But it may also be pressured by both unions and the Greens to go further in addressing problems with the Fair Work system.
Tackling the wages crisis
There are many reasons for Australias low wage growth over the past decade, not least aloss of bargaining power for workers. Clearly though the problem is not going to fix itself. Policy actionis needed. The question is whether Albanese and his colleagues have the answers.
In the first instance, they will look for help from the Fair Work Commission in its upcoming annual wage review. Albanese hasexpressed supportfor a minimum wage increase that at least keeps pace with inflation. That could potentially benefit everyone in the workforce whose pay is set by, or linked to, an award.
Beyond that, there are plans toimprove pay equity for women. Proposed reforms include requiring large employers to report their gender pay gap publicly, prohibiting pay secrecy clauses, and broadening the Fair Work Commissions power to redress the undervaluation of work in female-dominated industries.
Labor has also undertaken to improve the enforcement of minimum wage laws. It has committed to introducing criminal penalties for wage theft something the Morrison governmentpromised but failed to do and ensure workers have a quick and easy way to recover underpayments.
What is less clear is whether the Albanese government can bring itself to set a lead for the private sector, both by paying public servants more and by supporting decent wage growth in the many sectors affected by public funding and procurement.
Doing so could have a rich economic and social dividend. But the cost will be a challenge, especially with Laboralready committedto supporting and funding significant pay increases for aged-care workers.
Enterprise bargaining
Then there is thedecline of enterprise bargaining, the process supposed to be the main way of gaining wage rises under the Fair Work system. Just 11% of private-sector employees are now covered by a current (non-expired) enterprise agreement.
Albanese has spoken of abusiness-union summit echoing the consensus approach taken by the Hawke Labor government in the 1980s to discuss how to revitalise the bargaining system.
It could certainly be simplified, and much could be gained from anew emphasis on co-operation. Yet much as the new prime minister would like to channel Bob Hawke and rediscover the virtues oftripartism with employer organisations, trade unions and governments working together it will take a herculean effort to find consensus.
Many in the labour movement would like to see a reversion to industry-level bargaining, at least in sectors where enterprise negotiations are impractical, as well as a greater role for the tribunal in breaking deadlocks. It will be fascinating to see ifthose ideasgain any traction over the next three years.
Making work less precarious
In contrast to its silence on bargaining and the role of trade unions, Labor hasclear plansto address insecure forms of work. Among other things, it has promised to:
- limit casual and fixed-term employment to jobs that are genuinely temporary or irregular
- ensure labour-hire workers are paid the same as those directly employed by the business to which they are assigned, and
- empower the Fair Work Commission to set minimum wages and conditions for employee-like workers, including those finding work through digital labour platforms such as Uber or Deliveroo.
The complexity of many of these issues should not be underestimated. There are many long-term casuals, for example, who prefer to take a pay loading in lieu of leave entitlements they may never use.
Allowing the Fair Work Commission to make an award for certain types of gig worker will not fully address the potential for sham contracting arrangements opened up by recent High Court decisions.
It will be interesting to see if the new government moves on these reforms immediately, or perhaps looks for some of them to be explored in greater depth by its promisedwhite paperon the labour market.
A focus on women at work
Post-election analysis has rightly focused on thecrucial role played by female voters and candidates. The new government will be doubly keen to implement the parts of its platform that address issues of particular significance to women.
Besides the policies already mentioned on pay equity and insecure work, there is apledge of cheaper childcare, plus a new right to paid family and domestic violence leave.
Labor will also fully implement recommendations from the Australian Human Rights CommissionsRespect@Work reporton sexual harassment. That includes amending the Sex Discrimination Act to create apositive duty on employersto take reasonable measures to eliminate sexual harassment.
Possibly the greatest challenge, however, will be to make a difference in the workplace over which the government has most control parliament house. Staffers and MPs are entitled to expect not just protection from violence and harassment butgreater respect and accommodation.
It will be a very public forum in which to judge the new governments commitment to fair pay and conditions for working women.
Andrew Stewart is the John Bray Professor of Law at the University of Adelaide. His main interests lie in employment law and workplace relations, contract law and intellectual property.
Original article in The Conversation, republished with permission
John Menadue
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