Industry Newsletter

The remuneration arrangements in the Road Safety Remuneration Bill are at odds with the position that the Fair Work Act and modern awards provide a safety net for employees, and that enterprise agreements have an important role to play. As such, the Bill has the potential to undermine the integrity of essential elements of the Fair Work workplace relations system.

"The establishment of the new Tribunal would distract Government and industry attention and resources away from the measures which are widely recognised as improving safety, such as: risk identification and control; improved roads; fatigue management; education and training; drug and alcohol policies; use of technology; and strong compliance and enforcement mechanisms," said Ai Group Chief Executive, Heather Ridout.
Remuneration orders would be able to be made against road transport companies as well as those who use road transport such as retailers and manufacturers.

Read Ai Group's submission in full.

The Federal Government released its Defence Industry Workforce Strategy Discussion Paper yesterday, making a positive initial step towards mapping the skilling issues within the sector and developing long-term solutions for stability and growth.

This focus on skills comes at a time when the sector is under intense pressure at both Prime and SME level, with the resources sector in particular competing for skilled workers and putting pressure on wages.

"This Discussion Paper, together with the announcement of the likely initial funding of the Future Submarine Program, are encouraging signs the Government is interested in developing deeper industry involvement in the capability delivery process," said Ai Group Defence Council Executive Director, Innes Willox. "We look forward to continuing to work with the Government in developing a strategy to meet the future skills needs of the defence sector."

Activity in manufacturing remained in positive territory during January, with the Ai Group-PwC Australian Performance of Manufacturing Index (Australian PMI®) up 1.4 points to 51.6 (readings above 50 indicate an expansion in activity). The lift was largely due to a rise in the delivery of inputs (55.6) and a rise in inventories of finished goods (54.3) while production (50.7) and new orders (49.9) were broadly unchanged. Across the sub-sectors, food and beverages registered the strongest performance (73.8), textiles the weakest (37.7), while sub-sectors linked to construction also performed poorly.

The contraction of six of the 12 manufacturing sub-sectors in January highlighted the persisting tough conditions in the sector, with respondents citing ongoing global economic uncertainty and strong overseas competition as factors inhibiting growth.

Download the full January 2012 Australian PMI®

The equal remuneration order granted yesterday by Fair Work Australia has awarded minimum wage increases of up to 45% for workers in the social and community services sector, phased in over the next eight years.

Given the looseness of the equal remuneration provisions of the Fair Work Act applied by the majority of the Full Bench of FWA in this case, the decision makes a raft of union claims in other industries a real danger.

"This decision creates huge risks for Australia's workplace relations system," said Ai Group Chief Executive, Heather Ridout. "It demonstrates that the equal remuneration provisions of the Fair Work Act need be tightened to prevent widespread flow-on to other industries and workplaces, and to ensure that Australia's award system is not undermined. The Act should require that equal remuneration orders are based upon proof that there has been discrimination in the setting of pay rates for men and women for work of equal value."

Ai Group intends to pursue necessary changes to the equal remuneration provisions during the review of the Fair Work Act currently underway.

Ai Group last week released Resourcing the future, its statement of priorities ahead of the Queensland election, calling the March 24 poll "an opportunity for fresh policy approaches that address the economic imbalances associated with the resources boom".

"In particular, Queensland industry would like to see policies that chart a sensible path for sustaining a diverse economy and driving improved productivity," said Ai Group Queensland Director, Matthew Martyn-Jones.

Such policies include:

• Continued infrastructure investment, including maintaining a pipeline of major infrastructure projects;
• Addressing the State's significant red tape burden;
• Ensuring government spending is as efficient as possible and reducing the size of the public sector to a more sustainable level;
• Stronger investment in skills, including for non-resource sectors;
• Improving workforce literacy and numeracy;
• Developing and funding a State-wide innovation policy to drive productivity; and
• The adoption and implementation across government agencies of appropriate policies to build transparency, fairness and greater opportunity for local business participation in government and large project procurement.

Read the full report.

Ai Group will present a two-hour breakfast briefing this month in Victoria, NSW and QLD on the subject of managing redundancy. Numerous questions will be answered, including:

• What is a redundancy under the Fair Work Act, when does it arise and what are my obligations?
• What does a good redundancy process look like?
• What is the current benchmark for redundancy entitlements?
• What are senior managers and executives entitled to?
• Can employees challenge their selection for redundancy?

Find out more or register now in Melbourne, Rosehill or Brisbane.

• Focus on defence skills a positive first step
• Equal Remuneration Decision Creates Huge Risks for Australia's Workplace Relations System
• Australian PMI®: Manufacturing holds positive territory in January
• 'Safe Rates' Legislation not the Answer to Road Safety
• Resourcing the Future: Ai Group's QLD Election Priorities

• Ai Group Weekly Economics Report

Last week's data indicated that the prices producers pay for their inputs remain relatively contained, and with the annual rate of underlying inflation remaining within the Reserve Bank's target range, the odds of an interest rate cut by the Reserve Bank at its next meeting on February 7 are shortening.

• Ai Group-ACA submission: retain the ABCC

Ai Group and the Australian Constructors Association (ACA) last week lodged a joint submission to the Senate Committee inquiry into the Building and Construction Industry Improvement Amendment (Transition to Fair Work) Bill, calling on Parliament to reject efforts to abolish the ABCC.

Introduction to supervision
Melbourne, February 22
Brisbane, February 28
Merrylands, March 7
Ballarat, March 21
Wollongong, March 28
Newcastle, May 1
Adelaide, May 9

This two day program is designed to introduce supervisors to basic elements of managing their team and ensuring they are aware of and comply with relevant workplace legislation. The program is ideally suited to employees preparing for supervisory roles or newly appointed supervisors that may have little or no formal training. The learning outcomes primarily focus on interpersonal skills required including counselling and feedback as well as managing the performance of individuals. And don't forget, 
Ai Group's training calendars for 2012 are now available!

Standards Australia has invited Ai Group to provide a representative to its Risk Management Standards Committee, which will deal with Risk Management from a higher level strategic and concept perspective.

Ai Group is seeking a representative who has a background as a risk management practitioner, together with policy/strategic management experience.

Interested parties should contact David Crossley by Friday, February 17.

The Convergence Review Committee, within the Department of Broadband, Communication & the Digital Economy (DBCDE), released an Interim Report in December providing an insight into the recommendations it is likely to make in its final report due by the end of March.

Ai Group previously made a submission to the emerging issues paper released by the Committee in July, and we are now seeking feedback from members and participants to determine whether to make a further submission. Should members agree to do so, we are seeking feedback on the Interim Report to develop a consolidated industry position which will be submitted to the Department in mid February.
Please contact Bill Petreski today on (03) 9867 0264 if you wish to comment.

Ai Group is calling for input from members to inform our submission regarding the Federal Government's Review of the Fair Work Act.

We have identified key barriers to productivity and flexibility in the Act that need to be removed, including restrictions around the engagement of contractors and on-hire workers; lack of flexibility around workplace agreements; increased union power; ill-conceived transfer of business provisions; and loose and uncertain General Protections provisions.

To contribute your views on the operation of the Fair Work Act, contact Genevieve Vaccaro on (02) 9466 5421.

The Australian Government has commissioned a White Paper on Australia in the Asian Century to consider the likely economic and strategic changes in the region and the implications and opportunities for Australia.

Ai Group will make a submission as part of the consultation process being conducted by a Task Force commissioned by the Prime Minister. To assist in the preparation of submissions, the Task Force Advisory Panel has released an Issues Paper outlining broad issues to prompt further discussion, together with terms of reference about governance and timelines, and the public consultation process. Members wishing to contribute issues for inclusion in the submission should contact Rebecca Walker before Thursday, February 16.