Brendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | Hansard source

I rise to ask the Minister for Education, the Minister representing the Minister for Employment, what the impact will be on the clothing industry as a result of the proposed cut to Ethical Clothing Australia. ECA exists to ensure that the rights of home workers are protected and that they are receiving award rates and entitlements. ECA is a joint employer-union initiative that has been established to promote ethical working conditions throughout the supply chain and to protect the rights of both Australian factory workers and home workers, who are also known as outworkers. Outworkers are particularly vulnerable and isolated, as their work is often unregulated and hidden. They face unrealistic deadlines, long working hours, irregular flows of work, and significant occupational health and safety issues.

The fact that the cessation of this funding has come on top of the government revoking the fair work principles that require businesses tendering for government contracts to comply with the Fair Work Act the opposition believe will not only damage the conditions of employment and the health and safety standards of workers in this sector but impact on the very successful companies that work in this sector. Indeed, the TCF industry has a requirement that TCF manufacturers be accredited with the ECA when tendering for contracts. So that is an important protection for the industry to maintain standards and a very important protection for workers.

The government has cut funding in the budget to the TCF Structural Adjustment Program that provides intensive assistance to TCF workers made redundant in the TCF industry, so that compounds the problems around removing funding for the ECA. Iconic Australian clothing brands RM Williams and Cue will be hit by the government's cuts to this area of our labour market. I have had conversations with some companies that have raised concerns with the opposition about the adverse impact that this funding cut will have.

Akubra, Cue, Hard Yakka and RM Williams—iconic Australian names—believe in and support Ethical Clothing Australia, and so does Labor. We say so too should the Abbott government. Given that industry supports the ECA, why is the government ceasing funding to the ECA? What consultation, if any, occurred with the ECA prior to the budget announcement? Did the department consult with the industry department about the cut to the TCF Structural Adjustment Fund? Is the government aware of the impact the cut to ECA will have upon the industry? Won't funding cuts make it harder for ethical companies to survive and compete against those who do not meet such standards?

I might just stop there and provide the opportunity for the minister to respond to those questions.

See this speech in context