Commission Starts The First Ever Full Review Of Modern Awards
In a conference held in all major Australian cities by video link,a Full Bench of the Fair Work Commission has commenced the 4 yearly review of the Modern Awards. The conference was well attended from all sides of the industrial landscape, including employer representatives, unions, and the Commonwealth.
Australian Business Lawyers & Advisors attended the conference appearing on behalf of Australian Business Industrial (ABI). Australian Business Lawyers & Advisors will continue to represent ABI throughout the Review. ABI will be focussing on a number of important issues during the Review including:
- Small Business: ABI will explore the possibility of a small business schedule to be inserted in Modern Awards that provides relevant specific terms applying to small businesses. The emphasis in the proposed schedule would be on simplicity, clarity and appropriateness for the circumstances of small businesses and their employees.
- Penalty Rates: ABI’s view is that the current penalty rates currently contained in some Modern Awards is out of touch with modern Australian society, and the demands faced by a number of industries. Attention will be directed towards more appropriate penalty rates.
- Individual Flexibility Agreements and Flexibility generally: the result of the formal IFA mechanism in Modern Awards is that Modern Awards have generally become more restrictive, and less flexible than their predecessors. Focus will be on improving flexibility mechanisms within the Modern Awards.
The 4 yearly review of Modern Awards is a process contained in the Fair Work Act 2009 (Act) which requires the Fair Work Commission to review the Modern Awards every 4 years.
This review will be the first of its kind and will consider changes that are proposed to the Modern Awards as well as ensuring that the Modern Awards are consistent with the National Employment Standards.
It has already been recognised that there will be a number of ‘common issues’ that will impact multiple Modern Awards and the Commission has asked parties to identify common issues in preparation for a further conference to be held on 26 February 2014. Justice Ross, President of the Commission, indicated that the common issues matters will be dealt with in a manner that is fair and efficient, but also cautious, indicating that the Commission is mindful of the need to remain flexible whilst dealing with common matters as not all areas of concern will be readily identifiable from the outset of the 4 year review.
The Commission has already established that this Review will be far broader in scope than the 2 Year Review which is now in its final stages. Proposals to vary Modern Awards will be made by way of submissions to the Commission rather than by way of applications (as was done in the 2 Year Review). The process which is proposed by the Commission was generally agreed by the parties:
The 4 yearly review of modern awards will be primarily conducted by one Full Bench of the Commission over a period of 18 months. While one ‘core’ Full Bench will conduct the Review, the composition of the Full Bench will vary depending on the group of awards being reviewed. In some cases, individual Members may deal with specific awards or specific issues and provide a report back to the Full Bench. The review will follow the form of the original Part 10A award modernisation process, in that parties will be required to make submissions to a Full Bench on an award by award basis, rather than by application.
While there was general agreement about the broad nature of the Review, there was debate about scope and the way the Review is to be conducted. Further discussions will focus on the jurisdiction of the Review and what powers the Commission has to make changes to the Modern Awards.
Parties have been asked by the Commission to make additional submissions on the scope of the Review and any jurisdictional issues, with a further conference to be held on 6 March 2014 to discuss these matters.
Source: Australian Business - 10 February 2014
