MANY Victorian businesses face increased labour costs and compliance requirements in the New Year, when the State transfers its industrial relations powers to the Federal jurisdiction, according to the Victorian Employers Chamber of Commerce and Industry (VECCI)
MANY Victorian businesses face increased labour costs and compliance requirements in the New Year, when the State transfers its industrial relations powers to the Federal jurisdiction, according to the Victorian Employers Chamber of Commerce and Industry (VECCI).
The transfer of power will see comprehensive Federal award coverage applied to Victorian businesses not previously covered by such awards, with a number of employment conditions mandated for affected businesses.
Such conditions include: a 17.5 per cent annual leave loading; weekend penalty rates of time-and-a-half and double time for normal rostered work; mandatory overtime rates; new redundancy benefits and other leave conditions; and a comprehensive range of additional employment benefits.
“The new entitlements have the potential to add real cost increases to the wages bill of Victorian employers, particularly those trading outside the traditional Monday to Friday, 9–5 period, as so many now are,” said VECCI general manager, Workplace Relations, David Gregory.
The changes have the potential to significantly impact upon businesses particularly in the service sector, including tourism, entertainment, hospitality and retail businesses, along with SME and regional businesses, where a greater proportion of employers operate outside of Federal award coverage, he said.
“These employers need to quickly understand the potential impact of these changes and the options they might be able to consider in response.”
The Victorian Government said that 350,000 of the State’s most disadvantaged employees would be given access to basic award conditions under the transfer of industrial relations powers.
“At the last election the Bracks Government promised to provide wage justice for Victoria’s most vulnerable workers,” said Victoria’s Minister for Industrial Relations Rob Hulls.
“The hand-over of Victorian State industrial relations powers to the Commonwealth in 1996 left more than 350,000 workers with only the barest of protection through Schedule 1A of the Workplace Relations Act.”
He also said it would close the door on the former Liberal-National Government’s policy of a “race to the bottom”in respect to employment conditions.
“The new system is simpler and introduces a more even playing field for Victorian employers,” he said, praising employer groups, unions and the AIRC for working cooperatively together to develop the ground-rules for the transfer of powers.
However, with the Federal Government’s wide-ranging planned workplace relations reform, unions recently changed their tack and called on the Bracks Government to consider the reintroduction of a State-based industrial system.
“We call on the State Government to develop policies and consider all measures that they could take to protect Victorian workers from what is likely to be the attacks of the Howard Government and that includes the introduction of a state based system,”said Victorian Trades Hall Council president Michele O’Neil.
O’Neil said that Victorian workers were more vulnerable than those in other jurisdictions because the State didn’t have its own industrial relations system..
She said the living standards and rights of Victorian workers had to be protected, and put a motion to the Victorian ALP conference to consider the reintroduction of the State industrial jurisdiction.
“The resolution was supported unanimously and it called on the Government to enter into those discussions with the trade union movement,” she said.
For more information on the changes to Victorian industrial relations and considerations for HR professionals, see issue 48 for “The changing face of Victorian IR.”
