Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

I thank the senator for her question. I would point out to her, though, that this is a complex issue and it is something we are going to have to work through. I understand a disallowance motion has been sponsored by the opposition in relation to this matter and I think we have offered a briefing to the opposition. It is a complex matter.

As senators may or may not know, in 2009 the Queensland Industrial Relations Commission made a pay equity decision that increased wages for employees in the Queensland social and community services sector—the SACS sector—by adjusting rates of pay under the award. The Fair Work (Transitional Provisions and Consequential Amendments) Regulations require Queensland SACS sector employers who received additional funding from the Queensland government following the Queensland pay equity decision to pay employees in accordance with that decision. That is, the Queensland government funded certain employers to pay that wage decision. Following the Queensland pay equity decision, the Queensland government committed an additional $414 million to a range of Queensland providers—they were the ones that were subject to the pay equity decision because they were bound by federal transitional awards. The Queensland government subsequently decided to refer the power to the Commonwealth to extend the Fair Work Act. Had it not done so, employers who were bound by the federal transitional awards would have moved to the Queensland system and become subject to the pay equity decision from 27 March 2011 when transitional awards expired. As a condition of the referral of power, the Queensland government asked the Australian government to extend the pay equity decision rates of pay to employers bound by federal transitional awards. The government agreed to this request and also reflected its commitment to the heads of agreement with the Australian Services Union. (Time expired)