Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I present the government's responses to the report of the Select Committee on the Future of Work and Workers, and the report of the Education and Employment Legislation Committee on the provisions of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 in accordance with usual practice. I seek leave to have the documents incorporated in Hansard.

Leave granted.

The documents read as follows—

Australian Government response to the Select Committee on the Future of Work and Workers report:

Ho pe is not a strategy—our shared responsibility for the future of work and workers

MARCH 2023

Overview

The Government welcomes the recommendations outlined in the Hope is not a strategy—our shared responsibility for the future of work and workers report (the Report) and thanks the Committee for its work. The Government particularly acknowledges the valuable submissions to the enquiry made by over 160 individuals and organisations. The feedback provided at public hearings was used by the Committee and Government in framing the inquiry report and this response.

The nature of work is constantly changing. How we currently work and will work in the future is being shaped by factors such as economic, technological and demographic change, as well as shifts in business practices as industries and communities adapt to climate change. The way we work also continues to evolve. For example, COVID -19 has accelerated digital transformation and adoption of new technologies and new work styles.

To keep pace, workers and employers are adopting new ways of operating. These changes provide an opportunity for Australia. The priorities of ensuring access to better skills and training, secure jobs and growing wages create new opportunities for more Australians and are key objectives for the Government.

The Government has a clear plan for a better future for all Australian workers and is making jobs more secure by implementing reforms to strengthen protections available to workers. Jobs and Skills Australia has been established to strengthen workforce planning, the training system is being improved and there is increased investment in TAFE and university places to train workers for the new jobs of the future.

On 1-2 September 2022, the Government convened the Jobs and Skills Summit which brought Australians together to work constructively on the challenges and opportunities facing the Australian labour market and economy. In collaboration with industry, unions and other community stakeholders, the Government agreed to a range of immediate initiatives.

The Government is focused on medium and long-term reforms to prepare Australia's future labour market and has undertaken to develop an Employment White Paper which will build on the outcomes of the Jobs and Skills Summit and will focus on the objectives of full employment and productivity growth for the benefit of all Australians, along with women's economic participation and equality.

The Government will continue proactively working with business and unions to address the workforce challenges presented by the changing labour market and is focused on building a bigger, better trained and more productive workforce, boosting incomes and living standards to ensure jobs are secure and businesses are thriving.

Changing employment trends and working patterns

Technology has always changed the way workers do their jobs.

COVID-19 led to rapid changes in the way people worked and transformed almost every aspect of people's lives. Workers and employers were forced to adopt new ways of working. Many activities moved online, and many aspects of these changes may remain permanent.

The Government recognises the importance of ensuring everyone can take advantage of the opportunities presented by new technologies and a modern workforce. The Government is improving access to the internet, including providing reliable services in more regional areas and investing in skills development to ensure digital literacy training is available to people who need it.

Rapid technological advancement, disrupted global supply chain settings, and an ageing Australian population are expected to result in further structural change in the labour market continuing over the medium and long term. It is projected that four service industries—health care and social assistance, professional, scientific and technical services, education and training, and accommodation and food services—will provide more than three-fifths of total employment growth over the next five years[1].

Our recovery from COVID-19 highlighted vulnerabilities in the global supply chain. The $15 billion National Reconstruction Fund is the first step in the Government's plan to rebuild Australia's industrial base. The National Reconstruction Fund will provide financing to drive investment in projects that will build prosperity across the country, broadening our industrial base and boosting regional economic development and employment opportunities.

The Powering Australia Plan will also prioritise regional growth and investment. Increasing investment in renewable energy will create jobs, cut power bills, and reduce emissions. These initiatives will support Australian businesses to grow and ensure more opportunities are available for employees.

The Government is focused on leveraging the opportunities these changes present and shaping the future so that everyone prospers. Skilling Australians for change is crucial to building a better future. To take advantage of these opportunities, the Government will also work in partnership with businesses and unions to achieve better outcomes for the Australian economy. This includes updating workplace laws, boosting job security and wages, and advancing gender equality for women.

Building a better skilled, better trained workforce

Training workers for the future is key to taking advantage of the opportunities these changes bring. How we skill people up and prepare Australians for change is crucial. Investing in education and equipping people with the right knowledge and skills is the best long-term generator of economic growth and productivity. A strong education, from early learning and schools right through to universities and TAFEs helps set people up to make the most of upcoming opportunities. As workplaces evolve, workers will need support to continue to deepen, develop and adapt their skills throughout their working lives.

Jobs and Skills Australia has been established as a priority. The new agency will provide independent, evidence-based advice on current and emerging skills and labour needs and workforce challenges, and will engage widely with business, unions, governments and the education and training sectors. The agency's analysis will support government and industry to address short-term challenges and emerging opportunities.

Having good quality and responsive higher education and vocational education and training (VET) systems is critical to ensuring people are prepared to take up future jobs. To support this goal, the Government will work in collaboration with states, territories and key VET stakeholders to create a National Skills Agreement that offers Australians the skills they need to gain secure employment in the future, and to develop a comprehensive VET Workforce Blueprint to support and grow a quality VET workforce, ensuring the long-term sustainability of the VET sector. This partnership will drive improved outcomes in the VET sectors and strengthen workforce planning, particularly in growing sectors of our economy.

The Government is supporting more technology-related jobs by making available 480,000 fee-free TAFE places and up to 20,000 additional Commonwealth-supported university places for under-represented groups in areas of skills shortages. The Australian Skills Guarantee (the Guarantee) will ensure one in ten workers on major government projects is an apprentice, trainee or cadet. The Guarantee complements the Australian Apprenticeships Incentive System which provides financial assistance to all employers hiring an apprentice or trainee. Additional support through a wage subsidy is available for employers of apprentices in priority occupations identified as being skills in demand. Apprentices and trainees in priority occupations are also eligible for direct payments to assist with their costs of living and completing their apprenticeship.

A New Energy Skills program is funding 10,000 New Energy Apprentices. The New Energy Apprenticeships initiative will help secure a pipeline of talent to build a skilled workforce so that Australia can become a renewable energy superpower.

Increasing the participation of women in the workforce

Despite considerable gains in the workforce participation of Australian women over the past 50 years, employment and economic outcomes for women remain unequal. The Government is working towards reducing barriers to employment so that all Australians have an equal opportunity to reach their full potential. This will include:

Making it easier for people to get jobs

The Government is committed to ensuring Commonwealth employment services support people to find good secure jobs.

The Government has established a House Select Committee inquiry into Workforce Australia Employment Services so that employment services are best designed to meet current and future challenges facing Australians.

The Committee will examine the first 12 months of the new Workforce Australia system and has committed to review all aspects of the program including the implementation, performance and appropriateness. The Committee has also resolved to include pre-employment and complementary programs within the scope of its inquiry.

The Committee undertook to make any recommendations on ParentsNext in an interim report before the end of February 2023 while a final report will be provided back to Parliament by 29 September 2023. The Committee will conduct a number of public hearings and will seek submissions from stakeholders as part of this process.

Creating secure jobs

Employment has a profound impact on an individual's and families' quality of life. Insecure work, low wages and low productivity have material consequences for individuals, businesses, the economy and the community as a whole. The Government wants a strong economy where every Australian has the opportunity to find a secure job, with fair pay and proper protections. An effective workplace relations system will allow Australians to build a safe, prosperous and secure future while providing workers and businesses a pathway to seek better outcomes and thrive.

The Government's Secure Jobs, Better Pay legislation will bring changes to the workplace relations system that deliver better productivity and flexibility for employers and better pay and conditions for workers. The new laws:

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 does this by:

The Secure Australian Jobs Code will be established under the Buy Australian Plan to prioritise secure work in government contracts and ensure that government purchasing power is being used to support businesses that engage in fair, equivalent, ethical and sustainable practices.

The Senate Committee's final Report recommended that the Fair Work Act be updated to respond to emerging issues in Australia's employment and workplace relations' system, including the rapid emergence of the gig economy. Changes to the workplace relations framework are necessary to ensure all workers have adequate protections for themselves and their families.

The Government has also committed to:

Conclusion

The Government thanks everyone who participated in the Select Committee on the Future of Work and Workers for their insights. The possibilities emerging from new technologies and work practices create many valuable opportunities for Australian businesses and their workers. As workforces continue to undergo change, we will continue to take forward initiatives that help build a better trained and more productive workforce, create secure jobs, boost real wages and living standards, and create more opportunities for more Australians.

[1] Employment Outlook (five years to November 2026), National Skills Commi ssion.

Australian Government response to the Education and Employment Legislation Committee report:

Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 [Provisions]

MARCH 2023

Recommendation 1

The committee recommends that the bill be passed, subject to the amendments that follow.

The Government notes this recommendation.

Recommendation 2

The committee recommends that an amendment be made to the bill to clarify that conciliation should take place before arbitration of disputes over fle xible working arrangements unless there are exceptional circumstances.

The Government supports this recommendation. In response to this recommendation, the Government moved an amendment to require the Fair Work Commission to first attempt to resolve a dispute by means other than arbitration, such as conciliation. Paragraph 65B(4)(a) notes the Fair Work Commission must first deal with a dispute over flexible working arrangements by means other than arbitration, unless there are exceptional circumstances.

Rec ommendation 3

The committee recommends that an amendment be made to the bill to clarify that the protections and entitlements under the Fair Work Act 2009 apply regardless of immigration status.

The Government supports this recommendation in principle. The Government has made an election commitment to implement the recommendations of the Migrant Workers' Taskforce, which covers this recommendation. Implementation of this recommendation is expected to occur in the first half of 2023.

Recommendation 4

The co mmittee recommends that the provisions of the bill prohibiting sexual harassment be reviewed for consistency with the Sex Discrimination and Fair Work (Respect at Work) Amendment Act 2021 and the Anti-Discrimination and Human Rights Legislation Amendment ( Respect at Work) Bill 2022.

The Government supports this recommendation. The Department of Employment and Workplace Relations has reviewed the provisions in the bill for consistency with other recent Respect@Work reforms to the Sex Discrimination Act 1984 and concluded that any differences are necessary given the different context of the two pieces of legislation.

Recommendation 5

The committee recommends that the definition of 'small business employer', for the purpose of Part 21 of the bill be increased from fewer than 15 employees, to fewer than 20 employees, including regular and systematic casuals, based on headcount. The definition of 'small business employer' in section 23 of the Fair Work Act 2009 should remain unchanged.

The Government notes this recommendation.In response to Recommendation 5 of the Senate Committee Inquiry, the Government moved an amendment which increases the small business exemption for single interest employer authorisation where an employee organisation applies to add an employer to a single interest agreement or authorisation. Employers must have at least 20 employees at the time the application an made. Such employers will still be able to be added to an authorisation or agreement by consent.

Recommendation 6

The committee re commends the amendment of the 'minimum bargaining period' in s235(5)(i) for the purpose of an intractable bargaining declaration, to provide for a nine month minimum bargaining period commencing after either the nominal expiry date of the agreement or nine months from the commencement of bargaining, whichever is later.

The Government notes this recommendation. In response to Recommendation 6 of the Senate Committee Inquiry, the Government supported the amendment moved by Senator David Pocock which extends the 'minimum bargaining period' to the latter of nine months from the nominal expiry date of the agreement, or nine months after bargaining starts. This longer timeframe ensure that parties will have a reasonable period of time in which to bargain for an agreement before the Fair Work Commission is able to settle a bargaining dispute using an intractable bargaining declaration.

Recommendation 7

The committee recommends that a statutory review of the bill be undertaken but occurs no earlier than three years after the bill receives Royal Assent.

The Government supports this recommendation in principle. The Government moved an amendment which requires the Minister to cause a review to be conducted into the operation of the amendments made by the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022. It must start no later than two years after the Act receives Royal Assent, with a written report provided to the Minister within 6 months of its commencement. The report must subsequently be tabled in each House of the Parliament.

Recommendation 8

The committee recommends section 180A of the bill be amended so that no party can unreasonably withhold agreement for a proposed enterprise agreement being put to a vote, and the Fair Work Commission should have the power to resolve disputes pertaining to this.

The Government notes this recommendation. In response to Recommendation 8 of the Senate inquiry, the Government moved an amendment to ensure that employers are not unreasonably prevented from putting multi-enterprise agreements to a vote.

Coalition Senator's Dissenting Report and Additional Comments

The Government does not support the recommendations set out in the Dissenting Report and Additional Comments.

Barbara Pocock (SA, Australian Greens) Share this | Link to this | Hansard source

I want to offer some comments on the reports that have just been tabled. I welcome the contents and the material they present, which is very relevant to many matters before our parliament.

It's somewhat disappointing that the response to a report on the future of work has to wait five years to be tabled. It's a long time to spend without dealing with matters which really remain—and certainly were five years ago—very important. I say that as someone who has recently chaired a similar select committee, which looked at issues of work and care. That's a report which I hope does not have to linger on the shelf and wait five years for a response from the government. I would make the point that there's a range of additional material now before the parliament in the form of that Select Committee on Work and Care, and other matters. This material is very relevant to legislation we will be looking at over the coming course of the year. These reports point to the existence of labour shortages five years ago, and of the need to change the way in which we regulate and support workers.

There's clear evidence in more recent times that our labour participation rates in Australia can be increased by improvements in our Paid Parental Leave scheme—increasing the participation of people in work through better and cheaper child care—and by a range of measures that countries use which are referred to in these reports. There's clear evidence in them of the need to take action, particularly in relation to security of employment. It is very clear that we have too many casual workers, especially in our care sectors. Many of them who are on casual terms are unaware of their potential hours next week and are unable to predict their working time or, necessarily, get the support they need for the care to get to work.

I think there are many important issues raised in these reports which require a legislative and a policy response, which subsequent reports have also referred to and which I hope will lead to positive action to make a difference for working carers—men and women—and for their families into the future.

Question agreed to.