Albanese’s industrial relations bill gives workers more pay, overtime

Employees in two key sectors could score higher pay and more overtime for the first time in 12 years if the federal government’s industrial relations bill passes.

More than 450,000 mainly hospitality and retail workers stuck on the same conditions since 2009 will receive higher pay and extra overtime if the Albanese Government’s industrial relations bill passes.

Under proposed changes currently before parliament so-called “zombie” agreements signed during the last six months before the Fair Work Act came into effect at the start of 2010 will be cancelled a year after the new bill becomes law.

Many of the agreements that have stayed in place unchanged since 2010 include a flat rate of pay and minimal overtime bonuses.

The agreements were allowed to be registered because, in the period prior to the commencement of the Fair Work Act, there was no requirement that workers not be worse off under them.

All that is required of them is that they include the minimum base rate of pay as the current modern awards.

Higher pay and more overtime are in

store for hospitality and retail workers. Picture: Bianca De Marchi

It is believed about 450,000 or 4 per cent of the workforce are still covered by the agreements, with 180,000 of them in accommodation and food services and about 85,000 working in retail.

Another 65,000 are understood to work in education and training.

In recent years the Shop, Distributive and Allied Employees Association has campaigned against zombie agreements particularly by the fast food franchise Subway.

The union says the fast food giant has more than 300 of them in place.

Abolishing them was a key demand of the ACTU going into this year’s job summit in Canberra.

The Government is negotiating with ACT Senator David Pocock, the last vote it needs to pass its legislation.

Prime Minister Anthony Albanese’s government hopes to pass the bill by December. Picture: Gary Ramage

It has made it clear it wants the bill passed before parliament rises at the end of the first week of December but sources familiar with the negotiations with Senator Pocock say he wants more time to consider the legislation.

Under the legislation, six months after it becomes law, employers will be ordered to inform their workers their agreements will be terminated unless Fair Work agrees to extend them.

If the workers do not agree to extend them, they will be snuffed out six months after that with workers moved over to awards that in most cases will see their rates of pay increase markedly.

Workplace Relations Minister Tony Burke said “sun setting” the reports will mean businesses need to pay the minimum entitlements provided for in awards.

“Even Tony Abbott said WorkChoices was dead, buried and cremated, but somehow these zombie agreements are still alive,” he said.

“It’s inconceivable that in 2022 there are agreements which lock-in wages and conditions from almost two decades ago.”

Originally published as Albanese’s industrial relations bill gives workers more pay, overtime