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Office of Fair and Safe Work Queensland
Department of Justice and Attorney-General
Home > Corporate Information > Corporate publications > Annual Report 2004-05 > Private Sector Industrial Relations

DIR Annual Report 2004-05: Private Sector Industrial Relations

Safe, fair and productive work environments
Policy leadership
Responsive service delivery

Future
Auditing improves workplace fairness


Simon Blackwood
General Manager
Private Sector Industrial Relations

The Australian Government's proposed legislative changes represent a significant challenge to Queensland's successful state system of industrial relations. The department will be working hard to ensure the continued success of the state industrial relations environment that contributes to successful economic and social outcomes for all Queenslanders.

Simon has more spent more than 15 years in the public sector and more than 20 years working and studying in the area of industrial relations. He holds a PhD in industrial relations from the University of Queensland.

Highlights

Description

The Division of Private Sector Industrial Relations (PSIR) provides advice to government on industrial relations legislation and policy. PSIR also undertakes education and awareness activities on the industrial relations arrangements in Queensland, represents government in industrial forums, and provides training and information services. A statewide inspectorate delivers compliance services and information to the community on industrial relations laws, awards and agreements.

Safe, fair and productive work environments

Queensland's positive industrial relations climate is one of the reasons for the state's continued strong economic growth. The Queensland industrial relations system has also helped ensure the lowest levels of industrial disputation in decades. Queensland's average quarterly strike rate for the 12 months ending 30 June 2005 was 4.7 working days lost per 1,000 employees. For Australia, the average quarterly strike rate was 7.2 working days lost per 1,000 employees per quarter.

Policy leadership

PSIR provides advice to government on industrial relations legislation and policy, facilitates their implementation and represents government in industrial tribunals and forums.

Changes to legislation

The Industrial Relations Act 1999 (PDF, 1.9 MB) was amended in April 2005 to ensure continued fair and flexible employment options that promote productivity and long-term economic growth. The amendments included measures to help workers balance their work and family lives and to help clothing outworkers recover unpaid wages.

New legislation to regulate private employment agents, the Private Employment Agents Act 2005 (PDF, 396 KB) , was enacted in April 2005. The Act established a legally enforceable code of conduct that prescribes standards of conduct and service for agents in their dealings with people seeking work.

New legislation established a portable long service leave scheme for the contract cleaning industry - the Contract Cleaning Industry (Portable Long Service Leave) Act 2005 (PDF, 614 KB). The scheme will be financed by employer contributions equivalent to 2% of each of their employee's wages and will see long service leave paid to workers based on their service in the industry rather than their time with a single employer. The legislation will be effective from 1 July 2005.

Queensland industrial relations system at work

The Queensland Government made submissions in major cases in the Queensland Industrial Relations Commission (QIRC). In the 2004 state wage case, the Government supported the increase of $19 a week that took effect from 1 September 2004.

In the Termination, Change and Redundancy case, the QIRC heard a further claim to remove the small business exemption from having to make severance payments. The Queensland Government maintained its previous position of supporting the exemption. The QIRC decision accepted this argument and recognised that many small businesses operate in difficult financial circumstances.

In December 2004, the QIRC granted an application by the Queensland Council of Unions (QCU) to increase award superannuation requirements from 3% to 9% in line with federal superannuation legislation. The application was supported by all parties.

Work and family

The Work and Family Project - Pilot Program, a collaborative research project between the department and the University of Queensland, completed its field work. More than 3,000 employees, from 10 organisations in both rural and urban areas, tested a family-friendly survey tool as part of the pilot program.

The department joined, as an industry partner, in a three-year research project into parental leave in Australia led by the University of Queensland and the University of Sydney. The project will provide information about the use of parental leave and worker's preferences for combining work and family responsibilities. This information will help inform the department's policies on work and family issues. The first stage of the project, a survey of parents of children aged 12-18 months, commenced in April 2005.

National issues

The division made major contributions to the preparation of the Queensland Government submissions to two major Senate inquiries. The Queensland Government submission to the Inquiry into the Workplace Relations Amendment (Right of Entry) Bill 2004 opposed the bill because it severely hampered the right of unions to enter workplaces to investigate breaches of working conditions or address members and potential members.

The submission to the Parliamentary Inquiry into Labour Hire and Contracting provided information on the extent of the use of labour hire in Queensland. It supported the use of independent contracting, but expressed concerns about the use of artificial contract arrangements to hide genuine employment relationships.

The government participated in a joint Labor states' submission in support of a $20 a week increase to award rates of pay in the 2005 National Wage Case. The Australian Industrial Relations Commission decision resulted in an increase to the minimum wage of $17 per week.

In the Family Provisions test case, the Queensland Government supported award provisions to help employees balance their work and family responsibilities, while taking into account the ability of employers to accommodate these arrangements.

Responsive service delivery

New enforcement framework

A new enforcement framework was released outlining a range of policies and strategies to encourage greater compliance. The framework included information about resolution of wage complaints, the conduct of investigations and prosecutions and targeted auditing of workplaces.

Inspections

Evidence-based, targeted audit campaigns were a priority throughout 2004-05 with more industrial inspectors appointed as part of the department's focus on increasing compliance with industrial relations laws.

This year industrial inspectors completed 2,781 audits - almost three times as many as completed in 2003-04. General audit activities focused on poor performing employers within the transport, hospitality, retail, hairdressing, security, real estate and trolley collecting industries. A general audit of the building industry tested compliance with superannuation obligations.

An audit of 250 clothing industry employers found that 43% of employers did not fully comply with their industrial obligations. More than $16,000 in wages was recovered for workers.

The number of prosecutions decreased to 239 (compared with 579 in 2003-04). This reflects the increased emphasis on auditing and the successful use of dispute resolution processes.

2003-04

2004-05

Wage complaints finalised

8,042

8,254

Amount of unpaid wages adjusted on behalf of employees

$8.47m

$9.88m

Amount of unpaid wages recovered through court proceedings

$1.3m

$0.88m

General Audits conducted - workplaces

979

2,781

Wage recovery investigations completed within three months

70%

73%

Legal proceedings completed (cases)

579

239

Success rate in court hearings

99%

96%

Level of customer satisfaction in relation to wage complaints

95%

97%

Trading hours inspections

27

11

Trading hours inspections are undertaken in response to complaints from the public. The decrease in the number of these inspections reflects a decline in the number of complaints.

Vietnamese Liaison Officer

The department's Vietnamese Liaison Officer has had considerable success in assisting the Vietnamese community with the recovery of unpaid entitlements, particularly in manufacturing industries. The department will continue to work towards protecting the rights of all workers, particularly those from traditionally disadvantaged communities.

Information services

Wageline is a statewide information service. The number of on-line visits to Wageline has increased by 38%.

2003-04

2004-05

Telephone enquiries

482,399

373,325

Internet client visits

633,836

878,772

Email enquiries

6,533

6,754

Telephone enquiries answered in less than three minutes

85%

82%

Written requests responded to within five working days

96%

97%

Level of customer satisfaction in relation to information services

99%

99%

The Industrial Relations Information System database provided subscribers with historical industrial relations legislation, a 'What's New' feature and a new email subscription to award changes.

Future

The Australian Government has indicated that it intends to expand the federal industrial relations system to cover all employees of incorporated businesses. This represents a direct challenge to the state's industrial relations system which currently provides for up to 70% of Queensland's workforce. The Queensland system has a proven track record of providing an effective and responsive system for regulating the relations between employers and employees. The Queensland Government is planning to legislate for a wide range of minimum conditions for employees.

To increase compliance with industrial relations laws, targeted workplace compliance audit campaigns will continue. The industrial inspectorate will target poor performing employers in areas of non-compliance.

An 'easy-to-use' web-based tool will be developed to help employers and employees readily determine the correct wages to be paid under a number of State industrial awards.

The Work and Family Project - Pilot Program will be completed and individual case study reports will be produced. An online tool and manual will be released to enable employees better manage their work and family lives. The department will also undertake a community education program on balancing work, family and lifestyle responsibilities.

The Government will develop a range of legislative and non-legislative responses to the review of child labour conducted by the Commission for Children and Young People and Child Guardian. These include a Child Employment Act, a Code of Conduct for the entertainment industry, a workplace health and safety code for young workers and a parent's guide to the employment of young people.

Auditing improves workplace fairness

From left to right: Peter Westcott Senior Industrial Inspector - Statewide Audit Team, Phil Greenhill Principal Industrial Inspector - Audit, Brad Rogers Senior Industrial Inspector - Statewide Audit Team, Peter Ball Senior Industrial Inspector - Audit

To help ensure Queensland's workplaces are fair, the department audits Queensland workplaces to test their compliance with industrial relations laws. This ensures that inspectors visit a range of workplaces - not just those workplaces that workers have lodged complaints about.

During an audit, inspectors generally target a number of workplaces in a particular sector of industry. Inspectors visit a workplace to examine the employer's records and talk with staff to ensure the employer complies with industrial laws and provides employees with their entitlements.

In 2004-05, nine additional senior industrial inspectors were engaged to focus on audit campaigns. This ensured that senior audit inspectors are based in all regional areas of Queensland. A special team of three inspectors was created to target recognised problem areas and industries on a statewide basis. The Statewide Audit Team is based at the Logan office within the Brisbane South/Gold Coast region.

The team's first deployment was in April and May 2005 with inspectors travelling to Townsville and Cairns for periods of three weeks to undertake audits in the hospitality/retail and clothing industries.

The additional inspectors contributed to the success of the 2004-05 audit campaigns in which more than 2,700 employers were audited and more than $1.3 million in wage arrears were recovered for employees.

Last updated June 4, 2009