The Queensland position
The Workplace Relations Amendment (WorkChoices) Bill 2005 (PDF, 1,750KB) (Non-Queensland Government link) was passed on 7 December 2005. The new laws became effective from 27 March 2006.
A defining feature of WorkChoices is what the laws take away from employees and employers.
The Federal laws:
- take away the right of up to four million workers (nationally) to seek a remedy if they feel they have been unfairly dismissed
- allow workers to be employed under agreements that provide just five minimum conditions - workers could lose award provisions for overtime, rest breaks, redundancy pay, shift allowances, penalty rates, and public holiday pay
- take away the wage-fixing powers of the Australian Industrial Relations Commission and give them to the Fair Pay Commission, and
- move incorporated employers and employees currently operating under state systems of industrial relations into the Federal system with no choice in the matter.
The Federal Government has argued these changes are required for a stronger economy. However, the international evidence is that labour market deregulation has led to a widening wage gap without necessarily improving economic performance.
WorkChoices represents a major shift in the industrial relations landscape with the following effects:
- the potential loss of current work conditions for employees under the Federal system depending on an employee’s bargaining power, employer behaviour, and the state of the economy
- the possibility that the minimum wage will fall in real terms (relative to inflation) as the AFPC takes control of wage-fixing
- reduced coverage of the Queensland state industrial relations jurisdiction from 70 per cent of employees to approximately 40 per cent of employees
- a more difficult environment for unions with restrictions on industrial action and right of entry to workplaces, and
- employers will no longer have a choice to operate in the State or Federal system.
The Federal laws do not recognise that the Queensland industrial relations system is strong and has worked well for both employers and employees. It remains a key factor underpinning Queensland’s strong economic performance and gives employers the flexibility to make agreements that suit their business needs while ensuring that workers are protected. The Productivity Commission has extolled the competitive benefits of a dual industrial relations system.
The Queensland system has a proven record for ensuring a low strike rate, high economic growth and high employment growth. The State economy continues to outperform the national economy with economic growth in 2005-06 at 4.4 per cent, 76 per cent higher than the Rest of Australia (2.5 per cent).
Queensland has also delivered more jobs and low unemployment. Since January 2002, this State has significantly outperformed the other states in employment growth – having an average annual growth rate (3.9 per cent) double that of the Rest of Australia (1.9 per cent).
Since 1998, Queensland’s strike rate has been falling compared to the rest of Australia. The State continues to experience an historically low level of industrial disputes, with the average quarterly strike rate (the number of working days lost per thousand employees) for the year to December 2006 at 1.1 compared to the Australian average of 3.7.
Queensland has demonstrated that strong and fair employment rights are an integral part of a successful economy.
A research paper (PDF, 305 KB) is available which provides details of Queensland's jurisdiction under the Federal Industrial Relations system.
> An overview of the WorkChoices Act
Last updated 22 July 2009
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