One month after the introduction of the Secure Jobs, Better Pay industrial relations reform bill into the House of Representatives, Independent ACT senator David Pocock has struck a wide-ranging agreement with the Federal Government to secure his support for the amended legislation.

The agreement will see the government support numerous amendments to the legislation to address concerns by stakeholders, from small businesses to low paid workers.

It also includes a commitment from the government to establish, in legislation, an expert advisory committee to review the adequacy of support payments annually ahead of each federal budget, and publish their recommendations.

Pocock said taken together, these measures will strike the right balance between ensuring people start receiving long overdue wage rises, maintaining productivity and protecting the most vulnerable in the community.

“This is now a substantially different bill to the one introduced in the House of Representatives a month ago. It is better for business, better for workers and makes sure the most vulnerable in our community are no longer left behind,” Pocock said. 

“There are now additional safeguards in place for business, especially small businesses, and some important new powers to better protect the low paid and those reliant on government support.

“I went into this seeking to get the best policy outcome, balancing the urgent need for workers to get a pay rise, with legislation that will work in practice by delivering pay rises for those that need it while not placing unreasonable burdens on small businesses.

“I believe we have achieved the right balance, significantly improving the legislation with the added commitment that will help stop governments leaving our most vulnerable behind.”

The commitments that Pocock agreed with the government include:

• A commitment from the Prime Minister to establish a new independent Economic Inclusion Advisory Committee led by the Treasurer and Social Services Minister to review the adequacy of support payments annually ahead of each federal budget, and publish any recommendations.

• A commitment from the Prime Minister to consider and respond to the recommendations of the Murray Review within this Term of Government to better protect subcontractors.

• A commitment from the Employment and Workplace Relations Minister to review modern awards.

• Small businesses with fewer than 20 employees based on headcount (and excluding seasonal workers and other irregular casuals) will be excluded from the single-interest multi-enterprise bargaining stream.

• The Government will undertake a statutory review no later than two years after the passage of the bill

• The ‘grace period’ during which a single-interest multi-enterprise bargaining authorisation can be granted from six to nine months.

• Introduce a new reasonable comparability threshold into the common interest test. 

• Introduce new safeguards for businesses that have fewer than 50 employees based on headcount wanting to exit multi-enterprise bargaining and with the onus of proving a common interest on the applicant for these businesses.

• Increase the ‘minimum bargaining period’ for the purpose of intractable bargaining declaration from six to nine months.

• Require conciliation to take place before arbitration over working arrangements unless there are exceptional circumstances.
  
• Remove the right to veto an agreement by allowing the Fair Work Commission to compel a multi-enterprise agreement to be put to a vote regardless of whether employee organisations agree and prevent parties unreasonably withholding agreement.

• Give the Minister a new power to declare an industry or occupation eligible for the supported (previously low paid) bargaining stream.

Further details around the agreed proposal for the new expert advisory committee will be released separately. An interim committee will be established by the end of 2022 with a first report to be provided ahead of the 2023 federal budget and the permanent committee being legislated next year.

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