Side by side with new industrial relations legislation is a process called award modernisation which is equally important in determining the future wages and conditions of our members.
The current 3,000 – 3,500 awards are to be reduced down to 150-200 industry awards. Awards will be modernised and written in easy to understand language and will need to meet the National Employment Standards. They will be reviewed every four years by Fair Work Australia (the new industrial tribunal). The new modern awards will provide the base for enterprise bargaining. All new enterprise agreements made after 1 January 2010 must meet the better off overall test (the BOOT test) against the modern award.
The Commission is still completing the work of award modernisation but it has already finalised the General Retail Industry Award, the Pharmacy Award, the Hair & Beauty Industry Award and the Fast Food Industry Award.
Some of the main features of the General Retail Industry Award are as follows:
• Covers retail workers including clerks
• Spread of hours
– Monday – Friday 7am – 9pm
– Saturday 7am – 6pm
– Sun 9am – 6pm
• Shift work loading 30% for shifts outside the spread of hours
• Junior rates:
– 20 years currently 90% new 90%
– 19 years currently 80% new 80%
– 18 years currently 67.5% new 70%
– 17 years currently 55% new 60%
– 16 years currently 50% new 50%
– 15 years currently 50% new 45%
• Casual loading – 25%
• Late night & Saturday loading – 25%
• Sunday rate – double time
• Tea breaks - 4 hours or more – one 10 minute paid break
- 7 hours or more – two 10 minute paid breaks
• Accident pay only applies until 2014
During the award modernisation process a serious issue has emerged. After the Industrial Relations Commission handed down its decision to create a new Hospitality Industry (General) Award covering large and small hotels, restaurants and catering the employers representing restaurants and catering, went to secretly lobby the ALP Government for a separate restaurant and catering award with lesser conditions.
Without any consultation with the union (the LHMU) the Minister for Employment and Workplace Relations, Julia Gillard made a direction to the Commission to create a separate modern award covering restaurants and catering and to
“clarify the Government’s intention that the award modernisation process should take account of the specific operational requirements of the restaurant and catering industry. Specifically, my request now requires the Commission to establish a penalty rate and overtime regime that appropriately recognises the restaurant and catering industry’s core trading times and the labour intensive nature of work in the industry.”
This is quite an improper decision by the Minister for Employment and Workplace Relations, Julia Gillard, to effectively overturn a decision of the Australian Industrial Relations Commission because the employers do not like the decision and require the Commission to hear the matter again. Her direction implies that the Commission should reduce the standard of wages and conditions for restaurants and catering.
The employers in retail, pharmacies and fast food have also gone to secretly lobby the Minister for a review of the modern awards and they have advised the media that the department is reviewing the matter. Any intervention by the Minister at the request of employers would be outrageous but it is a serious threat.
The SDA Metropolitan Divisional Meeting passed a motion unanimously on June 9th on this matter as follows:
This meeting of the Victorian Branch of the SDA condemns the action of the Workplace Relations Minister Julia Gillard in giving in to the whinging of employers in the restaurant & catering industry by directing the independent umpire– the Australian Industrial Relations Commission – to reconsider its decision to create a new modern Hospitality Industry (General) Award.
The Minister has overturned the decision of the independent umpire and has required the creation of a separate award for the restaurant & catering industry with implied lower wages and conditions.
Employers have lobbied the Minister for reduced wages and conditions and report that the Ministers’ Department is currently reviewing the new modern awards for retail, pharmacies and fast food at their request.
These modern awards have been made by the independent umpire – the Australian Industrial Relations Commission – after hearing detailed submissions from employers and the union.
This meeting expresses its outrage at any attempt to undermine the wages and conditions established by the Commission in the modern awards for retail, pharmacies and fast food.
This meeting calls on the Branch Secretary to alert all 50,000 members of the Victorian Branch of the SDA to the threat of a major attack on the wages and working conditions of workers in retail, pharmacies and fast food and take the matter to the ALP State Conference on Saturday 13th June 2009.
The State Conference of the ALP passed a motion unanimously on June 13 as proposed by the SDA:
This Conference condemns the decision of the Workplace Relations Minister to intervene on the side of employers in the restaurant and catering industry by directing the Australian Industrial Relations Commission to review its decision to create a new modern Hospitality Industry (General) Award. The Minister has overturned the decision of the Commission creating an award safety net standard for the hospitality industry and has required the creation of a separate award for the restaurant & catering industry with implied lesser working conditions.
Conference notes that other employers are lining up to ask the Federal Government to intervene on their behalf and overturn decisions of the Commission in order to produce lesser working conditions. Employers report that the Federal Government is considering proposals to seek to reduce the award safety net standard established by the Commission in retail, pharmacies, fast food & horticulture.
Conference expresses its outrage at any attempts to reduce the wages and conditions already established in modern awards.
Conference notes that these employers were “missing in action” during the Your Rights At Work campaign or were virulent supporters of WorkChoices. They are simply appealing to the Minister to overturn decisions they dislike after their arguments in the Commission failed.
Conference calls on the Minister to dismiss such requests by employers.
The Victorian Branch Conference of the SDA met on 27 and 28 June 2009 and passed the following resolution:
The Victorian Branch Conference of the SDA condemns the decision of the Workplace Relations Minister to intervene on the side of employers in the restaurant and catering industry by directing the Australian Industrial Relations Commission to review its decision to create a new modern Hospitality Industry (General) Award. The Minister has overturned the decision of the Commission creating an award safety net standard for the hospitality industry and has required the creation of a separate award for the restaurant & catering industry with implied lesser working conditions.
Conference notes that other employers are lining up to ask the Federal Government to intervene on their behalf and overturn decisions of the Commission in order to produce lesser working conditions. Employers report that the Federal Government is considering proposals to seek to reduce the award safety net standard established by the Commission in retail, pharmacies & fast food.
These modern awards have been made by the independent umpire – the Australian Industrial Relations Commission – after hearing detailed submissions from employers and the union.
Conference expresses its outrage at any attempt to undermine the wages and conditions established by the Commission in the modern awards for retail, pharmacies and fast food.
Conference notes that these employers were “missing in action” during the Your Rights At Work campaign or were virulent supporters of WorkChoices. They are simply appealing to the Minister to overturn decisions they dislike after their arguments in the Commission failed.
Conference calls on the Minister to dismiss such requests by employers and directs the Branch Secretary to forward a copy of this resolution to the Workplace Relations Minister.
If the Minister intervenes in the SDA’s modern award matters at the request of employers it threatens to reduce the standard of wages and conditions in the modern awards. This will ultimately flow-on to lower wages and conditions for SDA members covered by enterprise agreements as well.
What this shows SDA members is:
1. That there is only one party you can trust to look after your wages and conditions – the SDA.
2. That SDA members need to be always vigilant to make sure that politicians whether Labor or Liberal, deliver on their promises and do not sell out our members. We need to campaign together to protect the wages and conditions of SDA members.