Mark Arbib (NSW, Australian Labor Party, Minister Assisting the Prime Minister for Government Service Delivery) Share this | Hansard source

The government is also opposing the amendment. The government considers that modern award specific transitional arrangements should be developed by the AIRC after consideration of submissions with interested parties. This process is already underway. Initial submissions on transitional arrangements in modern awards were due on 29 May 2009.

The government has made a detailed submission to that proceeding and has requested the commission to deal with transitional provisions in a flexible way that best meets the requirements of the relevant industry or occupation covered by the modern award; to work closely with the parties, as they are best placed to deal with the intricacies of their industry; and to utilise the full five-year phasing in period in a flexible way—for example, in some industries, a shorter phasing in period may be appropriate, while in others the commission could even consider deferring transition to certain conditions. The government submission encourages the commission to work closely with the parties to examine any cost impact and to take account of the economic circumstances facing the industry. The submission recognises that the representatives of employers and employees are best placed to develop transitional arrangements that take account of any particular characteristics of their industry or occupation and that balance employer and employee interests.

The opposition has completely ignored the fact that, as well as the five-year phasing in provision in the award itself, there is already in this bill the capacity for employers to manage their way through exceptional circumstances. Individual employers covered by transitional agreements may apply to Fair Work Australia to phase in any changes to base rates of pay that result from the making of a modern award. They can make the application if it is necessary to ensure the ongoing viability of their business. This is in schedule 9, part 4, clause (14).

Question negatived.