Labor’s IR review calls for new review
Experts have concluded their review into Labor’s workplace legislation was constrained by ‘significant data limitations’.
Collective bargaining has increased and real wages have started to improve since the passage of Labor’s Secure Jobs, Better Pay legislation, but the laws need further scrutiny in two to three years to better assess whether they are meeting their objectives.
These are key findings by industrial relations experts Mark Bray and Alison Preston who concluded their review into Labor’s workplace legislation was constrained by “significant data limitations” caused by the short period of time between the laws commencing and their work.
The authors found the legislative changes were operating appropriately, effectively and with minimal unintended consequences, while emphasising the data limitations.
They noted the decline in collective bargaining between 2012 and 2022 – a period where the Coalition was largely in power – was significant.
“This occurred at the same time as there was a serious deterioration in the economic circumstances of Australian workers as measured by the indicators of wages and the extent of decoupling – the gap between real wages and labour productivity,” they said, before noting “government action … was necessary”.
The review said the main intentions of the collective bargaining and collective agreement amendments in the Secure Jobs, Better Pay Act were to reverse the decline in collective bargaining and to increase wages.
“The evidence about whether these intentions were realised is weak because of insufficient time elapsing since the amendments,” the review found.
“But the early signs are that collective bargaining is increasing, especially the coverage of collective agreements, and real wages … have started to improve.”
Employment and Workplace Relations Minister Amanda Rishworth said the review showed the legislation was benefiting workers.
“The act was designed to increase wages, collective bargaining, and job security, and to close the gender pay gap,” she said.
“While it is still early days, it is encouraging to see the positive impacts our legislative reforms have had on workers’ pay and conditions.”
Among 21 recommendations, the report said the government should advise its position on funding gender undervaluation reviews at the earliest opportunity.
It also says the government should look at extending employee protection from discrimination to explicitly cover perimenopause and menopause.
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