How Fair Does it Need to be?

By Ron Jones
HR Management & Workplace Relations Consultant

Much has been written recently on the need for improvements in the Fair Work Act 2009. The groundswell of opinion has been mounting for some time, and has intensified in recent weeks.

There may be a number of reasons for this: genuine concerns as to limitations of the Act; the build up of pressure for a review that must be conducted soon anyway; and the possibility of adding a further nail in the coffin of a Labor Government.

It must also be remembered that much of the bleating coming from various lobby groups is just sour grapes: bodies such as ACCI and the Australian Industry Group were heavily involved in the proceedings that led to the current system. They predominantly represent the interests of large corporations which have the resources to deal with the changes. To listen to them now, you would think they had been asleep for the last few years. Actually, they probably were if they failed to fully comprehend how the new system would play out. Such groups need to be careful to avoid an accusation that they are really only complaining now because they failed to advise their members how to deal with changes and how to defend themselves against the unions.

In my view, there is much to be applauded with the new modern award system: it has removed many of the problems of Work Choices and created a genuine attempt to build a stronger enterprise focus for workplace management.

However, there are areas where reform to the new modern award and individual flexibility arrangements is needed.

Some examples of areas of concern are: differences in implementing time and a half and double time for overtime; minimum times for employment of casual staff; clarity around when a casual ceases to be deemed a casual and what arrangements should be implemented when a casual is converted to part time or full time; transition arrangements from old awards; clarity as to the determination of award free status.

It is also important to recognise that the changes have had, and continue to have, a significant impact on many small to medium size businesses. Many business owners are struggling to fully comprehend the changes and what they need to do to ensure compliance. There is a real need for a moratorium on prosecutions until a full education campaign has been conducted.