The Australian Retailers Association (ARA) has made a senate enquiry submission to the Education and Employment Legislation Committee on the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022.
While the organisation supports “many elements of the Bill”, ARA CEO Paul Zahra outlined concerns around proposed changes to extend access to multi-employer bargaining.
"While we recognise that reforms are needed, enterprise-level bargaining agreements have the potential to provide flexibility for employers and employees in negotiating agreements tailored to specific workplace needs, to the benefit of both employers and employees."
The ARA argued multi-employer bargaining will create confusion, add cost and complexity, and result in more disputes and fewer enterprise agreements being reached.
"While we are particularly concerned about the impact on our small and medium-sized members, we also hold that these changes are not fit-for-purpose for larger businesses. Nor do we believe multi-employer bargaining will drive wages growth in our sector, where a war for talent is already driving healthy competitive tension in pay and conditions."
The ARA believes enterprise-level bargaining should be retained as the preferred method of bargaining, with reforms delivered to increase the number of enterprise bargaining agreements and protections put in place to ensure good faith bargaining.
Despite the ARA’s concerns over multi-employer bargaining, Zahra welcomed the Bill overall.
“We think many aspects of this Bill will create mutual benefit for employers and employees alike,” he said.
“The changes to the Better-off Overall Test will remove many of the existing barriers and disincentives to enterprise bargaining.
“The measures to address gender inequality, sexual harassment and discrimination in the workplace are vitally important for our sector, given that almost two-thirds of the retail workforce are women.
“And the increase in the small claims threshold will make it easier for more small business to access cost-effective mediation on pay disputes instead of lengthy and costly court proceedings, provided these provisions are used in good faith.”
He also noted that strong workplace relations helps the retail sector remain resilient in challenging economic environments, where they can “retain the flexibility they need to drive productivity and respond to changing trading conditions.”
“There are many positive elements of this Bill, but we do urge the government to pause and reflect on some of the more contentious elements of this legislation to ensure that it does indeed create better pay and more secure work.”
In particular, the ARA supports several of the amendments, including equal remuneration, prohibiting sexual harassment, anti-discrimination and special measures, and dealing with errors in enterprise agreements.
The ARA also raised further concerns in others parts of the bill, including:
- Abolition of the Registered Organisations Commission (ROC), which the ARA said that ROC provides an important function in regulating registered organisations and providing invaluable education, assistance and support to this cohort.
- The concept of “job security” in the bill, which the ARA said was undefined and subjective.
- Prohibiting pay secrecy, which the ARA said isn’t critical in addressing pay equity. “The ARA therefore recommends that employers retain the ability to require confidentiality around pay in employment contracts.”
- Fixed-term contracts, which the ARA said requires certain exemptions.
- Flexible work, which the ARA broadly supports, but fears that employers may be forced into arrangements that don’t work for them. And;
- Single interest employer authorisations, which the ARA said it supports an exemption for small businesses.