Yanko-based Rockdale Meats, one of the largest operations in the state, have recently moved to transfer their 450 staff onto individual contracts through a labour hire company, vacating itself of all responsibility toward the workers.
Instead workers have been told to take out their own income protection insurance to cover workers compensation, superannuation and other entitlements.
Because of a shocking accident and injury rate amongst meatworkers, abattoirs have one of the state's highest workers compensation premiums levels.
Under the arrangements individual workers could face insurance policies of more than 10 per cent of their total income.
Labor Council safety watchdog Mary Yaager says the move to avoid premiums is a worrying trend, particularly given the current deficit in the WorkCover fund.
Members of the Australian Meat Industry Employees Union and the Australian Workers Union have appealed to the WorkCover Authority to investigate the issue urgently.
Yaager says a High Court Ruling finding that labour hire workers are not deemed to be "employees" under workers compensation law, appears to have been the trigger for the company's move.
"It's outrageous that a company in a dangerous industry like this would totally wash its hands of its workforce," she says.
AMIEU NSW branch secretary Charlie Donzow says the move by Rockdale Meats is part of a pattern of anti-worker practices. "Since the plant's inception, Rockdale Meats has operated on the basis of fear and intimidation of the workforce," Donzow says .
"The workers aren't happy about it, they've been forced into this set up knowing that if they don't they'll lose their job."
Donzow says the push to labour hire seems to be a concerning trend developing across the meat industry. "If the cowboy employers keep doing this genuine employers will have difficulty competing."
Workers will rally in Sydney next Thursday as Commonwealth and State corporations ministers consider the Shaw plan to protect accrued leave entitlements when a company goes bankrupt.
Labor Council secretary Michael Costa says the rally will mark the start of a campaign that would continue until the the Howard Government is shamed into action.
"The NSW Attorney General has devised a plan that represents an important step in protecting the innocent victims of corporate failure," Costa says.
Key aspects of the plan include:
- preventing artifical company structures stripping workers of entitlements
- expanding directors personal liability
- ratifying an international convention on minimum entitlements
- analysing the feasibility of compulsory insurance or a wage earner protection fund
- a legal requirement for superannuation contributions to be paid regularly.
"Laws holding company directors personally liable and tracing assets through corporate structures have particular merit," Costa says.
Costa says the laws would be an important step towards the Labor Council's ultimate goal of a series of trust fund established into which employers would be required to pay employees' entitlements as they accrue.
Unions to Rally
Mr Costa said unions across the state would hold campaign leading up to next week's rally to brief workers about the importance of the change.
"They'll be told how Australia is the only country in the OECD not to protect workers entitlements," he said.
"And with 3,000 workers losing their entitlements every year, they'll also be warned it could be them who lose out next."
All workers are being asked to join the rally outside the Governor Maquarie Tower in Farrar Place, Sydney, from 1pm Thursday.
Oakdale Miners Close Up Shop
As for the 254 Oakdale miners thrown out iof work owed $6.4 million, today was officially their last day on the job.
Addressing Labor Council this week , Oakdale worker Trevor Williams told delegates how this marked the end of 27 years service.
Williams says his fellow workers feel cheated, particulalry as the mine's owner, former State Liberal MP Max Dunbier, is still operating other mines, as well as a trucking business and an earth-moving enterprise.
While Williams says the workers will continue to fight for their entitlements, with a meeting with Workplace Relations Minister Peter Reith set for early August, their broader aim now is to ensure that this never happens to another worker.
But that's what happened to Mill and hundreds of other performers who have suffered a similar fate to the Oakdale miners.
The long-running production toured all Australian capital cities and was seen by over one million people in the early nineites. But in 1992 the promoter "The Buddy Holly Production Company" went into liquidation.
"The first thing we knew the receivers were back-stage telling us the company was now in receviership." Mill recalls. This was despite the performers' own calculations that the show had made at least $8 million in the two years.
The performers, members of the Media, Entertainment and Arts Alliance, picketed the auditions for the next season of Buddy; the rights to which had been sold off as part of the receivership process, under the catchcry "where's the money?.
Nearly a decade later, the money has still not appeared, and a string of other shows have met a similar fate. Peter Pan, Gypsey and Turn to Sing are just some of the shows that have bitten the dust.
"It's a widespread problem," says Mill. "A $2 company sets up to promote a show, it goes bankrupt and the performers are left with nothing, often having spent weeks in rehearsals and pre-production."
"Performers would feel a lot of sympathy for the Oakdale miners; hundreds of Australian performers have been left owing what they have earnt.
In a nice twist, Mill is now working with the Maritime Union of Australia to develop a theatrical production around the Ships of Shame issue.
Sound of Music Update
Meanwhile, performers in The Sound of Music and Chicago are awaiting an Australian Industrial relations Commission hearing to resolve their dispute over payements between seasons of the shows.
The performers have threatened to walk out if promoter Gordon Frost does not pay them for lay-off time between the Sydney and Melbourne seasons.
In an industry first, the promoters are offering performers separate contracts for the two seasons rather than the standard single contract which provides for the gap in runs.
A report back to AIRC senior deputy president Colin Polites is scheduled for August 9.
Two key ALP unions, the Australian Workers Union and the Electrical Trades Union are leading the charge, foreshadowing changes to pre-selections rules at state conference.
Russ Fires Up
AWU state secretary Russ Collision has written to all NSW union secretaries, raising fundamental concerns about the Carr Government's competitive tendering agenda.
Collison says the policy is creating 'unnecessary heartache' on thousands of employees across a range of industries including Forestry, National Parks, Roads and Traffic Authority, State Rail, Rail Services Australia and Land and Water Conservation.
He says he'll be writing to all NSW ALP Ministers, MPs and any future candidates informing them that "unless they support the AWU and the trade union movement in NSW either through Hansard in the NSW Parliament or public acknowledgment, then those ALP members will receive no financial, physical or moral support from the Australian Workers Union."
"NSW ALP politicians must acknowledge the concerns of their constituents and supporters of face the possibility of their own political demise," Collision writes.
Bernie Adds Spark
ETU state secretary Bernie Riordan has gone further, arguing that preselection rules need to be reviewed to ensure Members of Parliament are committed to the trade union movement.
"What's occurring in the public sector in NSW is nothing more than privatisation by stealth," he says.
"It's our Party and it's time we reclaimed it," Riordan told delegates at this week's Labor Council, signalling that the battle would be taken up at October's State Conference.
And he's asked all unions to gather examples of where services have been contracted out by the public sector and are now being performed in a more costly, less productive, inefficient or unsafe manner.
Social Audit gets NCOSS Backing
Another debate earmarked for this year's State Conference, the union movement's call for a social audit, has received the backing of the peak welfare lobby NCOSS>
NCOSS director Gary Moore has proposed a community forum by held to look at the importance of a social audit of Government service funding and provision in NSW.
The Forum would be jointly hosted by NCOSS, the Labor Council and the Ethnic Communities Council and would be held in the lead-up to State Conference.
Union officials met with SOCOG this week following concerns that up to 50 per cent of the official uniforms will be produced abroad. SOCOG says the reasons are that Australia lacks expertise for the production of some garments, like non-iron trousers, along with the higher cost of Australian production.
Production of some of the uniforms will go ahead in Indonesia, Philippines and Fiji, where workers in a Free Trade Zone receive around $80 per week.
Textile Clothing and Footwear Union state secretary Barry Tubner says the union believes that all production should be local, but that, as a minimum, SOCOG should take steps to ensure its own Code of Labour Practise" is met.
Under the code, SOCOG has undertaken that during the production of licensed goods, monitoring will occur to ensure:
- employment is freely chosen
- there is no discrimination in employment
- child labour is not used
- freedom of association and the right to collectively bargain are respected
- fair wages are paid
- hours of work are not excessive
- working conditions are decent
- the employment relationship is established and training provided
- the use of exploited outworker is not to occur.
Tubner says if offshore production is to occur, SOCOG should fund a Labor Council officer to represent SOCOG with responsibility for labour standards, travelling to the foreign factories and inspecting workplaces and wage agreements to ensure these standards are being met.
Tubner also wants further scrutiny of conditions in Reebok factories, where much of the actual athletic equipment will be produced.
by Zoe Reynolds
The Global Mariner, the first cargo ship to ever be opened to the public, is mooring at the National Maritime Museum at Darling Harbour as part of its world tour of 80 ports..
Maritime Union of Australia national secretary John Coombs says the Global Mariner is a once-only opportunity to understand the dangers of Flag of Convenience shipping.
"Imagine working on a ship circling the world, month after month, underpaid, underfed, no way of escape," Coombs says.
This is how so many of the world's poorest people are exploited by these ships of shame sailing under flags of convenience."
The Flag of Convenience system allows ship owners to register vessels in countries other than their own to avoid tax, labour and safety standards.
The massive (12,788gt) vessel was converted into a floating exhibition last year by the global union, the International Transport Workers' Federation (ITF).
Its seven room exhibition is dramatic and hard hitting, already attracting more than 315,000 people worldwide. The appalling life of modern-day seafarers, dangers at sea and pollution of the oceans are all graphically illustrated in this multi-media, interactive exhibition.
Visitors can descend into the bowels of the cargo holds to experience giant images, complete with sounds and smells, on board cinema, an interactive computer game and story telling sessions from real seafarers.
FREE exhibition: National Maritime Museum, Wharf 7, Darling Harbour, Sydney, July 17-21
Learn more about ships of shame on our coast and the modern day adventures of Robin Hood - http://mua.tcp.net.au
An advertisement for 19 security guards is being carried by the Mission Employment web-site. It offers $15 per hour for security guards for an industrial dispute in Sydney.
Among the requirements are that guards "must be prepared to cross picket line and stay in Sydney three days".
Visyboard sparked the statewide dispute with workers by trying to cut back long-standing conditions during pay negotiations.
More than 400 workers of the paper manufacturing company have been on strike for the past week sparked by the dismissal of two workers for refusing to lift work bans.
Workers have set up pickets outside the Smithfield and Warwick Farm factories and the company has moved to introduce non-union labour.
With a large police presence outside the western Sydney factories and a constant stream of civil court proceedings being undertaken by the company, unions fear the dispute is a sign of how life will be in Peter Reith's brave new world of industrial relations.
Printing Union state secretary Basil King says the dispute is a "tough" one and believes the constant court action is prolonging, rather than helping to resolve difference.
The dispute was sparked when management attempted to downgrade conditions including making it compulsory to work Good Friday and Christmas Day, reducing overtime rates and repackaging hours into a full five day week.
At press time (post-time?), Visyboard was seeking court orders to end the bargaining period, after which time the company could sue workers for lost income.
"This is all about one of Australia's richest men, trying to get richer - at the workers' expense," King says.
NSW Nurses Association secretary Sam Moait says some private sector workers have already secured triple time, while nurses in the United Kingdom will receive five times the normal rate of pay.
Moait wants to work with other public sector employees like police, ambulance officers, the fire brigade and public transport to secure compensation for missing New Years Eve.
"Many public sector workers have no choice about whether or not they work on New Years Eve and New Years Day," Moait says. "They will be compulsorily rostered on duty so that the rest of us can be secure and safe while we enjoy the Millennium Party
She's asked Labor Council to convene a meeting of unions to coordinate an approach to the government.
Unions Ask Carr to Match Fahey
As unions wait for a response from the Carr Government on its call to make December 31, which falls on a weekday, a public holiday, they've also been reminded of the relative generosity of the former Fahey government.
HREA state secretary Michael Williamson has written to Labor Council pointing out that in 1993-94 the Fahey Government declared public holidays on December 27 and January 3, in lieu of Christmas Day and New Years Day, which both fell on a Saturday.
With the same configuration of this year's Christmas and New years Day, HREA wants the Carr Government to match Fahey's largesse.
Williamson says the public holidays for December 27 and January 3 should be in addition to a one-off public holiday on New Years Eve.
Describing the move as "classic union busting tactics", Labor Council secretary Michael Costa says Education Minister John Aquilina should send a message to the University that this is an inappropriate way of conducting industrial relations.
The northern NSW university is a state instrumentality, established by State law, with members of the Labor Government on the Council of the University and operating under the responsibility of the Minister for Education.
The decision to suspend payroll deductions was made as member of the Public Service Association and National Tertiary Education Union indicated they would take protected industrial action in support of a pay rise, as they are allowed to under the Workplace Relations Act.
"This sort of action has been used by conservative government and other employers in the past to attack the union and reduce its membership," PSA president Maurie O'Sullivan says.
"But it's surprising that an organisation with two Labor MPs- Janelle Saffin and Harry Woods - on its Council, should be going down this track."
by Dermot Browne
The Committee will focus on the effect of agency based bargaining and performance pay on the accountability and transparency of the Public Service. It will also look into Senior Executive pay arrangements. The CPSU is preparing a detailed submission for the committee outlining its members concerns.
CPSU National Secretary Wendy Caird says that over the last four years the Public Service has undergone massive upheaval. "We see this inquiry as a way to assess the impact of these changes on our members and on the way services are delivered to the community".
Caird says when the Howard Government embarked on the path of totally decentralised bargaining in the APS, it claimed there would be significant benefits, particularly in customer service.
But the CPSU expects the evidence to show that the approach has been expensive, time consuming and not in the best interests of the public.
"It is important to remember that the first round of Public Service bargaining took place in an environment marked by unprecedented levels of job shedding and out-sourcing," Caird says. "What we have seen was the first stage of strategy designed to give agency heads and CEOs more 'hand' in setting pay and conditions."
Many of these changes have been a direct challenge to the traditional role of the unions and some observers have been surprised at how well they have coped with the introduction of decentralised bargaining. Particularly given Peter Reith's obvious desire to use Government employees as an example of what his legislation can do.
For example, an overwhelming majority of non-executive public service staff - almost 3 out of 4 - are covered by 'union' agreements (Section 170 Ljs). These agreements are negotiated directly between the CPSU and agencies.
And even in agencies where management insisted on making 'staff' agreements (Section 170 LK), unions have continued to play a significant role. More often than not union delegates are elected by their workmates to act as 'staff' representatives and work closely with CPSU organisers and officials to ensure the best deal possible
However Caird says it would be wrong to assume that it has been smooth sailing. There have been significant attacks on many employment conditions like Higher Duties Allowance, redundancy arrangements, allowances, overtime payments and changes to hours of work. And this looks set to continue if Peter Reith's 'Second Wave legislation is passed by the Senate.
The union also believes that the inquiry will reveal high levels of Government interference in APS bargaining.
"While talking about letting agencies manage in a new flexible way, we've seen a very heavy handed approach from Minister Reith's department. For example, at his department's insistence, it has been impossible to make agreements that limit the use of Australian Workplace Agreements, (AWAs), even though many agencies and staff didn't want them" Caird says.
Further information about the committee and its inquiry can be obtained from the secretariat on 02 6277 3530; or by email on mailto:[email protected]
The deal, which would upgrade union training facilities while maintaining holiday access to Currawong, was restructured after a lease proposal failed to pass Council despite 90 per cent affiliate support.
The new contract arrangement includes the same basic proposal as the lease deal, but requires a bare majority to be approved.
Position Vacant
Campaigns / Marketing Officer
Part Time for 1 year
23 - 30 hours per week
APHEDA - Union Aid Abroad is the humanitarian aid agency of the Australian Council of Trade Unions. APHEDA is seeking a suitably qualified and experienced campaigns and marketing officer for a 12 month part-time position in our Sydney office.
The successful applicant will be required to develop and implement campaigns and fundraising within the trade union movement, especially in relation to East Timor but also including Burma and the Middle East. Reporting to the National Program Manager and as part of a small team the successful applicant will also be involved in other fundraising and marketing activities undertaken by APHEDA. S/he will be required to:
� co-ordinate the development of and then manage a national volunteer network of supporters.
� Increase revenue to agreed targets within specified appeals and programs
� Liase with the ACTU and trade union branches in relation to specific campaigns and appeals
� Liase with relevant local ethnic communities and solidarity organisations
This is an ideal opportunity for someone who has campaign and/or marketing experience, is creative, innovative, has well-developed interpersonal skills, an ability to relate to a wide range of people and excellent written and oral skills. A strong commitment to justice, human rights and trade union principles is also required in the successful applicant.
Salary is $ 38,000 pa pro rata
Written applications, addressing specific criteria and which include a brief resume, must be received before 6 th August 1999.
If you would like a duty statement, please contact Phillip Hazelton or Peter Jennings on Ph: (02) 9264.9343 Fax: (02) 9261.1118 or email mailto:[email protected]
When we are fighting the second wave, we must highlight how bad youth wages are.
You can accuse me of self-interest because I'm up for a pay cut (if the amendments go through), but I 'm turning 21 on Monday 19th so I say this not just to defend my own pay packet.
Why should it be a priority when there are so many other nasty elements in the legislation?
Because it is the only part of the bill which openly enshrines a pay cut.
WE all know that the amendments will strip back wages and conditions, but Reith can dispute that with his half-truths.
However, he cannot stand up and say that young people will get "More pay, better jobs" (as he creatively entitles the bills) out of this legislation. We are obviously getting less pay, there's no way he can dress it up as 'choice' or 'flexibilty', its just a wage cut based on nothing other than discrimination.
But we can quite clearly say to our members, potential members and the general community that Reith wants to actively slash the wages of people currently earning adult rates of pay. And keep others promised a pay rise on lower wages.
Fighting youth wages shows a committment to wages and conditions, where complex arguments over (for example) the right of entry (while extremely important) are less directly associated with the hip pocket of the future fighters for the labor movement.
To help this along, I am producing a leaflet entitled "Want a pay cut? If you're under 21, you're getting one anyway." But I need graphics for it so if anyone can do a suitable cartoon, that'd be great.
To assist or to get copies email mailto:[email protected] or call me on 0412 022 171.
In solidarity,
Luke Whitington, President, 71st Students' Representative Council, Sydney Uni, LHMU member 1997-9
Re: Your 'Piers Watch' column (in this case 're' means 'regarding', not 'reply'. God Damn this internet thingy)
::clap clap clap clap clap clap::
BRAVO! ENCORE! ENCORE!
The funniest thing Piers ever said was around New Years of this year. He said, "This year, try to keep an open mind".
OPEN MIND?!? PIERS AKERMAN?!?
Of course, what he meant to say was, 'believe in the same things I do without question', so all is well in the world.
Keep up the good work.
Just a word of congratulation on Workers Online, which I consult everyweek to find out what is happening on the Australian union scene.
Excellent presentation and content which is of great value to us in the international union movement. Keep it up !
Bob Ramsay
FIET Geneva
by Peter Lewis
How are workers entitlements protected in Europe?
The position in Europe is very straight forward. Under European Community law there is a directive that applies to all members states. It says that each member state must set up a guarantee fund from which workers can draw when the business goes insolvent. Different countries have implemented this directive in different ways, but they've all got some provision to support workers when the business goes belly up.
In the UK, if the business goes insolvent, the worker claims entitlements back from the government; the government pays the money owing subject to certain legislative limits. then its up to the State to recover the money from the bankrupt company. This takes the pressure of the worker; the workers recovers from the government and the government recovers what it can from the company. The government may not get the money back from the employer, but it recognises that the worker should not be left carrying the load.
When was this directive brought in?
Way back in 1980 but you can trace the directive back to 1973 when France introduced an employer insurance fund. In 1980 the European Community as an institution issued a similar rule which require compliance by all EC members. This was introduced at a time when the EC was developing a social action agenda, recognising that it was not just about economics, but there was also a social agenda to the EC. Part of the social dimension of then 1970s were three directives protection workers in the case of redundancy, when the business is transferred from one owner to another and when the business went bankrupt. So what you've got is an obligation to introduce protective measures in these cases.
The Howard Government argues that a worker protection fund would cost jobs because they will increase business costs. Was a similar argument run by the Thatcher Government?
I don't remember this issue being controversial and I don't remember this argument being run at all. I don't see this as being any different from liability insurance for employers for health and safety or automobile insurance for people who drive cars. It's just a form of insurance to protect people from certain risks that occur in a capitalist economy. It seems to me that someone has to bear the cost of this risk - you've got to ask yourself who should that be? It could be the worker, it could be the business community or it could be the taxpayers. It seems to me it shouldn't be the worker, I don't see why the taxpayer should be asked to bail out the irresponsibility of the corporate sector. So that leaves the business community to incorporate it into the costs of doing business. It may add to the cost of doing business, but if the insurance fund is universal, then the costs would not be that great.
Does it surprise you that this debate is going on in Australian in 1999?
I'm amazed, particularly when I read some of arguments against it. One of the arguments is that you can't do this because it's unfair to good employers who will then be paying for bad employers. But this happens all the time, that's why we have insurance schemes, to share the risk. One thing is clear and unequivocal and that is that workers shouldn't be left holding the baby. How can you justify that on any ethical basis? And how can you justify asking the taxpayer to fund it? I just don't see how you can. If you go into business you undertake the responsibility to pay your workers the wages and entitlements which they earn. That's the responsibility first of the employer and then of the broader business community.
It seems on this issue the European Community is showing a way forward. What else is going on that may be of interest to Australian workers?
At the Community level there's a great push to develop social programs which will have an effect on all the member states. There are a number of interesting things going through at the moment, some of the existing social measures are being revised, we have new protections for workers on fixed term contracts, new protections for part-time workers, new parental leave provisions, a big push to require all enterprise over a certain size to have a Works Council to ensure workers are properly consulted, so there's a pretty full agenda.
Then there's the member states. There's been stability in the states which have not gone down the Thatcherised deregulatory road that sought to deal with globalisation by dealing unions out of the process.. Looking at some of the countries, it's staggering just how stable the systems are - most mature democracies see trade unions as part of the solution rather than part of the problem. There's fantastically high levels of collective bargaining coverage in Europe except the UK - in France, Germany and Italy collective bargaining coverage is close to 90 per cent. The OECD found that the lowest level of collective bargaining coverage outside the UK was 70 per cent. That's not membership levels, there's still the freeloader problem, but it is an import statement about the regulatory effect of collective bargaining and the positive role of trade unions. There is within the European system an ideological opposition to compulsory trade union membership, it's no longer acceptable, but freeloading is a prize with paying for the high levels of collective bargaining.
What lessons can Australia learn from the British experience under Thatcher and the environment in the rest of western Europe?
Western Europe, as far as I can see, has repudiated the approach adopted hear and by Reagan and Thatcher before you. If you take the British experience, the painful lesson that people have to learn is that this new deregulatory route, if taken too far, just doesn't work. It's unsustainable for two reasons. First, because it's now recognised as being economically inefficient. You can't compete globally by having a demoralised, de-motivated labour force. You can't compete at that end of the market. For reasons of economic efficiency you actually need a highly regulated, highly skilled, highly motivated, highly trained, highly paid labour force. That requires re-regulation. That's the process we're now undergoing in the UK after learning this the hard way. The other reason is about social justice, it's simply unsustainable that you have this huge income gap opening up between those who have and those who have not this kind of society for the few rather than for the many. This itself creates costs that add greatly to the burdens on the taxpayer as a whole.
That's why the British Government is undertaking a process of re-regulation; recognising that there should be fair employment standards, that workers should have a voice in the decisions that effect them. When you go to work you should not have to leave your civil liberties at the door. It's amazing to think that we've moved backwards 100 years re-fighting the battles that we thought had been one. And the same will happen here.
Dr Keith Ewing is Professor of Public Law at Kings College, University of London. He is currently in Australia on a lecture tour.
Introduction: Issues in Context
The Sydney Morning Herald put the matter aptly in its editorial of 7 July 1999, when it said the entitlements of workers "need not and should not be smashed to pieces in the carnage." [of company insolvency] and that the dilemma was "a scandal that must quickly be addressed".
The June 1999 closure of the Oakdale coalmine near Camden, NSW, where $6.3 million is outstanding in employee entitlements, is just the latest example and reinforces the need for measures to secure the payment of employee entitlements.
There was the earlier closure of the CSA Copper Mine at Cobar in 1998, where after much time and heartache employees were eventually paid out most of the approximately $10.5 million owing in accumulated employee entitlements, there has also been the closure of Gilberton Abattoir at Grafton involving $3 million in unpaid employee entitlements, and the Woodlawn copper, lead and zinc mine at Goulburn, where an estimated $6 million was due to employees. 157 Hospital workers at Rockhampton and Yeppoon lost $1.4 million, and thousands of Sizzler Restaurant employees lost $2 million worth of entitlements.
The 1998 waterfront dispute highlighted the need for measures to prevent the manipulation of company structures or the closure of businesses, where that leads to the avoidance of legal entitlements.
It is a fact of commercial life that not all businesses succeed. This is often the case despite the best efforts of company directors and management. But even where no-one is at fault, there is force in the proposition that employees deserve special protection in relation to their earned entitlements.
It is important that the response to this problem be a national one.
It must be recognised that this is not a matter for industrial law alone. Amendment of the Corporations Law is a necessary part of any package of reforms aimed at resolving these issues.
In recognition of the need for a national framework for company law, legislative amendment of the Corporations Law aimed at protecting employee interests requires the agreement of all Australian jurisdictions. Under the Heads of Agreements on Future Corporate Regulation, the States have undertaken not to legislate on matters which might affect corporations without the approval of the Ministerial Council for Companies and Securities.
Better securing the rights of employees requires corporate and industrial legislative reform at the federal level. I would argue that there is an urgent need to look at these specific reforms:
- That company directors could be held personally liable where, for example, a director has not acted with due diligence to make provision for the payment of entitlements.
- Related entities within a corporate group may be held liable for unpaid employee entitlements.
- An anti-avoidance provision could be inserted into the Workplace Relations Act to invalidate a contract or arrangement whose purpose or effect is to avoid legal obligations to pay employees their industrial entitlements.
- Measures could be introduced to require employers to make provision for employee entitlements as they accrue, to avoid the possibility that there will be nothing left for workers to claim against.
- Finally, the establishment of a federal wage earner protection fund of of entitlement insurance should be considered.
A Federal Proposal for the Corporations Law
Two options for the amendment of the Corporations Law were identified by the Federal Treasurer in April 1999, and raised at the Ministerial Council for Corporations. Both options are designed to assist in the protection of employee entitlements.
These were to:
- create a civil or criminal penalty, specifically designed to prevent the misuse of company structures by directors to avoid payment of employee entitlements; and
- strengthen the related party and insolvent trading provisions in the Law, so that directors would be in breach of the existing insolvent trading provisions if they gave a financial benefit to a related party or entered into a commercial transaction, which caused the company to become insolvent.
NSW has written to the Federal Treasurer and indicated a number of deficiencies with these proposals . The first proposal does not assist the recovery of unpaid money. Such a provision would primarily have a deterrent role. The second proposal does not focus specifically on the protection of employee entitlements. Rather, it aims to tighten insolvency law in a way which would assist all creditors.
Until more details are available, it will not be possible to determine whether the proposal improves the existing position of creditors.
The priority for policy makers at this stage should be to find ways to achieve recovery of entitlements for employees, rather than simply to penalise unscrupulous directors.
The Law as it Stands
An insolvent corporation is one which is unable to pay all its debts as and when they become due and payable The unpaid employee is, almost always, an unsecured creditor.
Due to amendments in 1993, the priority of the Commissioner of Taxation over employee creditors seeking payment of their entitlements has been abolished.
After the costs of the administrator (the costs of winding-up), employee entitlements rank first among unsecured creditors. Due to application of the pari passu principle, there is equal sharing of available assets between creditors of the same class. This means that employees, who are given a priority status as a class of unsecured creditors are, after the costs of winding-up, ranked next as the class of creditors amongst whom available funds are distributed.
Secured creditors, however, have priority over all unsecured creditors. This scheme of priority has been well summarised as having "been erected in a legal vacuum, without regard to the possibility that no money will be left in the corporate pot once secured creditors or the liquidators are satisfied."
Some have proposed affording employee creditors priority over secured creditors.
The International Labour Office uses the term "super-privilege" or "absolute priority" to describe this type of arrangement. A report to the 1991 International Labor Conference by the International Labor Office identifies a number of countries that have adopted such a system, "...mainly French and Spanish speaking countries, whose labour legislation is modelled on Mexican and French law. " Generally only part of the outstanding entitlement is protected by the super-privilege - for example only the previous year's wages may be protected .
Caution should be exercised before considering this type of approach. The application of secured creditor arrangements is fundamental to commercial lending arrangements. The impact of such a scheme on the lending practices of banks and other creditors would be a relevant consideration.
How effective those laws have been in practice in securing payment of employee entitlements would also be useful to know. Such issues are beyond the scope of this paper.
Option of Director Liability where a Corporation Fails to Pay Employee Entitlements
No matter what priority might be given to employee rights on insolvency, the fact remains that there may not be enough money in the company to satisfy their claim.
One measure to address this would be to hold directors personally liable in cases where they have not made proper provision for, and paid, employees' wages due and owing. Directors are already personally liable under some statutes and I accept the argument that the corporate veil should be pierceable on this important issue.
An exception could be made where a director can satisfy the court that the director:
* was not in a position to influence the conduct of the corporation in relation to making provision for wages and other entitlements due and owing, or
* the director, being in such a position, used all due diligence to make provision for wages and other entitlements due and owing.
There is already such legislation operating in Queensland. Canada also has directors' liability legislation of the kind contemplated here.
One Canadian legal text - and this is relevant to the Australian position - has described the position as follows:
"In many such cases the small asset base will not make it worthwhile for the creditors or the corporate employer itself to commence ... proceedings. Consequently, a hollow corporate shell will remain, against which creditors' claims are seldom recoverable.
To overcome this unsatisfactory effect upon employee creditors, most Canadian jurisdictions have established a legislative framework which enables employees to pierce the corporate veil and pursue their claims against the officers and/or directors of the corporate employer."
The Need for an Anti-Avoidance provision in the Workplace Relations Act
Appropriate legislation is necessary to prevent corporate restructuring conduct which leaves employees without their entitlements. This need was highlighted recently in the Patrick case .
Despite that case, artificial corporate restructuring of the type alleged in MUA v Patrick may, depending on the circumstances, still be permitted by current corporations law.
The proposal to introduce an anti-avoidance provision into the Workplace Relations Act would address the problem of artificial corporate structures being adopted to avoid employee rights and entitlements. It would allow a Court to declare void any contract or arrangement, the purpose or effect of which is to avoid the payment of employee entitlements, and seek to have a deterrent effect against corporate structures being so used.
Part IVA of the Income Tax Assessment Act demonstrates that the federal legislature in other contexts has experience in dealing with artificial mechanisms for avoiding the scope of relevant legislation.
Related Company Liability for Outstanding Employee Entitlements
There is much to be said for the objectives of the Employment Security Bill 1998 (Cth) of extending "employer" liabilities for entitlements to related companies by seeking to amend the Corporations Law to enable an application to be made to a competent Court for a related corporation to pay the debts of an insolvent company.
Again, this approach is not a panacea, but is an important component in the package of reforms proposed.
Consideration should be given to providing an employee, group of employees, or a registered industrial employee organisation, with the ability to apply to the Federal Court for an order that a related body corporate pay the outstanding entitlements due to employees of the employer company.
There is also a need to examine, and perhaps strengthen, provisions in legislation that provide for transmission of conditions on transmission of business to prevent companies avoiding entitlements by artificially transferring employees from employer to employer.
Mechanisms for ensuring that workers are paid
One of the biggest problems for workers is the fact that, even if they know that their organisation is about to fold, they have no legal right to have most entitlements paid until they are actually terminated - when the money may have gone.
Securing the Prompt and Regular Payment of Occupational Superannuation Contributions
There is currently no mandatory and universal statutory obligation that superannuation contributions be paid promptly and on a regular basis. Employees may not be aware that contributions are not being made. It is only at the end of the financial year that an employer who has failed to make superannuation contributions into a fund as required must pay the equivalent as a tax with interest, charges and a penalty.
This matter has recently been raised with the federal Treasurer by the NSW government. It was proposed that there should be a federal legislative requirement that superannuation contributions be mandatorily paid by employers on a regular basis, such as monthly.
This is a simple reform, but one that would make an enormous difference to many workers who find out too late that their employer has not being paying their super.
Protecting general entitlements
Employer-based or industry-based trust funds
This approach would involve corporations, on an individual company basis, holding the accrued entitlements of their employees in trust so that other creditors (secured and unsecured) could have no claim against these funds in the event of insolvency.
It is most readily applied to entitlements like annual leave, which is normally accounted for progressively in any case, and long service leave, where the entitlement arises on a specific date.
There are some limitations in this approach. Periods of leave are paid for (or paid out) at the employee's salary at the time of payment. However contributions in relation to that leave may have been made some years before. Smaller fund will find it harder to achieve sufficient earnings to pay the full entitlement. It may be difficult to require the making of progressive contributions in relation to redundancy where the liability may be substantial (for example, three weeks for each year of service), but may never arise. The administrative costs of establishing and maintaining a small fund could also be substantial. The argument may be made that contributions at the rate required to cover anything more than very basic leave entitlements would place a substantial impost on working capital available to companies.
Industry funds, such as those proposed by the AMWU, allow for economies of scale which may better address the needs of companies and of workers..
Wage Protection Insurance
The Employee Protection (Wage Guarantee) Bill 1998 (Cth) (the Crosio bill) seeks to set up a system of compulsory insurance to ensure payment of employee entitlements if a company becomes insolvent and has insufficient funds to pay employee entitlements.
This approach seeks to provide a remedy to all employees who would otherwise not recover entitlements, irrespective of the reason for the company's failure.
Compulsory insurance would necessarily impose a cost burden on all businesses, including those that are both solvent and responsible. Further costings and actuarial advice are needed to assess the cost of this option.
Depending on these costings, this option could be less of a financial burden for employers than either the employer-based trust model or the wage earner protection fund model.
A Wage Earner Protection Fund
A wage earner protection fund scheme involves individuals having the ability to claim against a general pool of funds. The "wage earner protection fund" approach was raised in the Australian Law Reform Commission's 1988 General Insolvency Inquiry Report. The key architect of that report, Mr Ron Harmer, wrote in a 1993 article that :
"... The ALRC, while it concluded that the interests of employees would be best protected by the creation of such a fund or alternative social welfare legislation, stopped short of making a recommendation because it considered that the issue was "a matter of policy that is more appropriate for the government to determine as part of, or in the light of, its social welfare and income support policies."
It is time for us to have that policy debate.
Ireland, Belgium Finland, Germany, Sweden, and Norway operate a fund for entitlements (funded in different ways, with a cap on claims):.
It is difficult to assess the costs of a wage earner protection fund. There are no accurate estimates of the value of lost employee entitlements due to insolvency. Neither ASIC has nor Australian Bureau of Statistics have reliable data. Nor does the Department of Social Security collect information as to claims for benefits by employees retrenched due to company insolvency, although it is worth remembering that the establishment of a wage earner protection fund would mean fewer claims on the social security system.
Depending on the costs involved, we may have a number of options. A statute-based wage earner protection fund could operate on a universal employer levy system. This could operate in combination with alternative effective mechanisms, allowing employers to opt for other models. For example, an employer and union may set up a trust fund or the employer might take out appropriate insurance.
Alternatively, and depending on costs, the Federal government could establish a government funded scheme. This could provide immediate relief to workers owed entitlements, and then pursue the relevant employer, directors, or related companies for recovery of the entitlements. Under this system the bulk of the burden would fall on the relevant employers, as is appropriate.
It is untenable that Australia continues to fail to develop and implement a scheme to meet the serious industrial and social difficulties that arise in practical terms on a regular basis in Australian workplaces from the failure to pay employee entitlements. To maintain a void in this area is in stark contrast to other nations.
The States need to work co-operatively with the Commonwealth on these complex issues to develop reforms that secure payment of employee entitlements, without acting as a disincentive to business investment and without adversely increasing business costs.
Jeff Shaw is NSW Attorney General and Minister for Industrial Relations. He will take his plan to a meeting of Coporations Ministers in Sydney this week.
by Dr Bridget Griffen-Foley
'Have you heard the story about the lift?', I am invariably asked when it emerges that I am writing about Sir Frank Packer and his company, Australian Consolidated Press.
It seems that nearly everyone over the age of 40 has an anecdote about Packer. The most popular story, of which there are endless variations, has Packer sacking a worker late one night for playing with the button of an ACP lift. R. S. Whitington, the author of a sycophantic Packer biography, David McNicoll, the long-time editor-in-chief of ACP, and Buzz Kennedy, the veteran Daily Telegraph journalist, are just three of the people who have provided accounts of the episode.
Given the popular fascination with the Packer family, it is extraordinary that neither Sir Frank Packer (1906-1974) nor ACP has attracted serious scholarly attention. In 1993 I began writing the first history of one of Australia's foremost media empires. The House of Packer: The Making of a Media Empire, will be published by Allen & Unwin this August. I am now completing a second book, entitled The Young Master: A Biography of Sir Frank Packer.
My work on Consolidated Press examines how Packer formed an unlikely partnership with the former Labor premier and federal treasurer, E. G. Theodore, in the 1930s; the editorial imperatives of the Australian Women's Weekly, the Daily Telegraph, the Sunday Telegraph, the Observer and the Bulletin; the publications' shift to the right; the activities of renowned editorial figures such as George Warnecke, David McNicoll, Donald Horne and Ita Buttrose; business developments; the acquisition of newsprint supplies; clashes with censorship authorities; the introduction of new printing technologies; the emergence of the Nine television network; the role of Clyde and Kerry Packer within the empire; and relations with the Fairfax and Murdoch dynasties.
The House of Packer explores at some length the operation of workplace relations at Consolidated Press. It considers why R. C. Packer (the co-founder of Smith's Weekly and the Daily Guardian) and his son Frank lured high-profile journalists and executives to their stable while opposing incremental increases in award wages; working conditions at Consolidated headquarters; the social rituals of male and female journalists; the impact of new technologies on the health of printers; management's commitment to fostering young journalistic talent and training cadets; the reasons for, and the legacies of, the 1944, 1955 and 1967 newspaper strikes; Sir Frank's paternal and feudal managerial style; and the emergence of a more formal system of welfarism.
Poring over the records (the minute books, the correspondence files and the journals) of the Australian Journalists' Association, the Printing Industries Employees' Union and the Amalgamated Printing Trades' Employees' Union yielded one unexpected highlight. In 1955 the Printer reported on an 'Unusual Dispute' that had occurred at ACP. This article revealed the details of the lift story, which I had sometimes suspected may have been apocryphal.
At 11.30 p.m on Friday, 21 October 1955 Packer and McNicoll found themselves stranded on the third floor of the Consolidated Press building in Castlereagh Street as the lift sailed past them two or three times. Never known for his patience, Packer bounded down the steps and saw N.Slarke standing near the lift. Although Slarke denied that he was guilty of 'playing around with the lift', he was immediately given a fortnight's notice. On Saturday night, when Packer refused to unconditionally withdraw the notice of dismissal, the Consolidated Press chapel stopped work.
The chapel was understandably angered by Packer's high- handedness, but the PIEUA believed that the decision to stop work was illegal. Nevertheless, the union was unable to persuade its members at Consolidated Press that they should resume work. To complicate matters even further, there was a suggestion that Packer had suspended some journalists indefinitely; the Daily Telegraph's editor, King Watson, seems to have been as bewildered by the situation as the AJA.
On Monday, 24 October a compulsory conference was held before Mr Justice Gallagher and the parties held further talks. That afternoon Packer finally agreed to reinstate the unfortunate Slarke and 400 Consolidated Press printers voted to return to work. However, the company refused to pay employees for time lost during the bizarre dispute.
Although the chapel seems to have grudgingly let the matter rest there, the lift story still circulates in Sydney union, business and journalistic circles. The episode is seen as emblematic of Packer's capricious and autocratic managerial style; according to one of the myriad versions of events, the person dismissed was not even a Consolidated Press employee, but a postal worker!
In order to fill out the 'true' story, I would be delighted to hear from any readers of Workers' Online who know anything about Mr Slarke or his whereabouts.
by Bill Jordan
For the past week, Ecuador has been shaken by demonstrations, strikes and other forms of protest action by trade union, peasant, indigenous, student and community organisations following President Jamil Mahuad's announcement of an increase in petrol prices as from July as part of a series of neo-liberal economic measures to reduce the enormous fiscal deficit that threatens to lead the country to bankruptcy and has worsened the poverty and social crisis of the Ecuadorian people.
Trade union leaders warned that there could be more widespread protest if the government did not cancel the price rises. The strike has the support of the powerful United Workers' Front (FUT) to which our affiliate, the Confederaci�n Ecuatoriana de Organizaciones Sindicales Libres (CEOSL) belongs.
The protests began on Monday 5 July 1999, when 50,000 taxi drivers, public transport workers and lorry drivers rebelled against the measures announced by the government. On the same day, the government declared a 60-day state of emergency, giving the police special powers to arrest demonstrators and clear the streets by force. Eight people were killed on Sunday 11 July, in Latacunga, 145 kilometres south of Quito, when Ecuadorian soldiers opened fire indiscriminately on the demonstrators.
This is the second time this year that the government has decreed a state of emergency, the first being in March when the government used troops to end a two-day general strike which ended with the partial freezing of bank accounts throughout the country.
The crisis has grown deeper at all levels, while human rights activists and trade unionists have suffered persecution at the hands of the government authorities, including health workers and notably brother Jos� Ch�vez Ch�vez, President of the CEOSL (Appeal no. 7-1999). Furthermore, those responsible for the deaths of brother Sa�l Ca�ar (leader of the CEDOCUT who disappeared on 26 November 1998 and was found dead on 3 December this year), Jaime Hurtado, Pablo Tapia and Wellington Borja have still not been identified.
The CEOSL also informs us that "Following the assassination of the lawyer Jaime Hurtado Gon�lez, a member of parliament for the People's Democratic Movement, and his companions, the following people: Monsignor Alberto Luna Tobar, Archbishop of Cuenca; Alexis Ponce, spokesperson for the Permanent Assembly of Human Rights; Dr. Hernan Rivadeneira, General Secretary of the Ecuadorian Socialist Party and advisor to the CEOSL; Nela Martinez, writer, Belen Andrade, leader-writer for the daily newspaper "El Mercurio" in the city of Cuenca and brother Edgar Ponce Iturriaga, Executive Secretary of the electricians' trade union network, "Enlace", were informed by official and/or police sources that the intelligence services of the national police force did not discount possible threats or attacks against them, supposedly by the head of the Colombian paramilitary forces, Carlos Casta�o. This theory was supported by the fact that some of those threatened had been invited to an international public meeting which opened the Dialogue for Peace between the Colombian government, chaired by Dr. Andr�s Pastrana and the FARC, in San Vicente de Caguan, on 7 January last."
We have also been informed that in view of the alleged threats by foreign paramilitaries against the above mentioned people, the police asked them to agree to be permanently accompanied by police officers. They have had police protection since March of this year.
Given the time that has lapsed since the alleged threats, the National Police has not provided a report on the investigations which identifies those presumed responsible for such acts and the reasons for these attacks on their lives, as well as the legal response to such a situation. Paradoxically, the political authorities and the police deny that paramilitary groups exist or operate in Ecuador.
One of those threatened, Alexis Ponce, has sent a letter to the Commission investigating the death of Jaime Hurtado, asking it to request a report from the Colombian Security Department (DAS) saying whether the Ecuadorian police requested information on paramilitary threats against the people mentioned above, and whether or not the DAS provided the Ecuadorian police with information on this matter. It should also urge the State not to ignore its obligation to respect the safety of its citizens. The authorities cannot falsify the truth and afterwards threaten to withdraw police protection, unless they wish to be denounced internationally for their blatant failings.
Please write to President Jamil Mahuad, Fax: 00593-2-58.07.35 and to the Ecuadorian Embassy in your country, with a copy to the CEOSL ([email protected]) protesting at the brutality of the police and army in repressing demonstrations by Ecuadorian workers and citizens. We also urge you to protest strongly against and demand an immediate end to the harassment of trade union and community leaders, call for the court cases against brother Jos� Ch�vez, Mar�a Eugenia Lima and the health workers' leaders to be dismissed, and to ask for the immediate release of those detained during the recent demonstrations.
by Lee Rhannon
Genetically engineered foods are being fast tracked into Australia by a handful of multinationals that are set to control the bulk of the world's food trade. This rush to maximise profits from the food we eat has led to companies involved flouting attempts by Australian and New Zealand Health Ministers to regulate genetically engineered foodstuffs.
Last year health ministers set May 13 this year as the date by which the standards they had set were to come into practice. But the companies involved failed to comply with this deadline. In an extraordinary move that could have long term implications for the well-being of all Australians the health ministers betrayed the public's trust and allowed genetic engineering companies to flood the market with mutant foods. 20 engineered varieties of six food crops - soybeans, corn, canola, cottonseed, potatoes and sugarbeet - onto our tables and into our mouths.
As these food products have been introduced without testing the impact on people's health groups, such as The Greens, have stepped up their campaign to alert people of the potential dangers of these food products. The immediate demand is for all genetically modified food to be labeled.
Health ministers will meet on August 5 to decide on this issue. (See below for details of how to register your protest.)
Regulations and monitoring systems should have been in place before any modified foods were introduced. Risks to human health and the environment are so large and uncertain that insurance companies will not insure the industry.
Consumers of genetically engineered food products are also expected to be exposed to high levels of chemical residues, as herbicide tolerant crops are drenched with chemicals to kill weeds.
The modification of food products is linked with moves by some of the biggest multinationals, such as Exxon, ICI, Monsanto and Heinz to buy out seed companies in order to gain control of seed stocks that would compete with the new engineered varieties.
Act now to protect our health and limit the domination of agribusinesses. Write to NSW Minister for Health, Mr Craig Knowles, and the Federal Minister for Health, Mr Michael Wooldridge, and call for the labeling of all genetically modified food products and the establishment of a biosafety protocol to control the global transfer of genetically engineered organisms.
by Peter Zangari
When walking around the streets of Sydney one can be overwhelmed by the thought of how many cafes there are. I think that for every good cafe in Sydney there are about ten bad ones. Thats probably exaggerating a little bit, but how many times have you thought about it. Now that we are living in an international city, coffee has surpassed every other beverage to be the most favoured drink. This would seem to be at odds with Aussie beer loving culture but it is true.
The Expresso Revolution is nigh. In the city, instant coffee drinkers are being left behind in their office kitchens by those searching for real coffee. The proliferation of the coffee cart outside Sydney office buildings is a sign of more things to come. These portable providers of relief strike a chord with workers who refuse to drink the cheap instant coffee that their boss provides. For an average cost of $2.20 per cup, the line-up at these carts is growing. First, smokers were exluded from the workplace and became loiterers in the doorways of ground floor businesses. Now a second group to cluster around the foot of buildings consists of the astute expresso drinker. Expresso coffee is their ultimate fix and there is no cheaper substitute.
Undeniably, caffeine is a drug that is socially acceptable to us. We do not hear advertisements warning of the dangers of caffeine addictions or caffeine related overdoses, instead we see advertisements for instant coffee of the mediocre instant kind. Our politicians feel that they can call on drug summitts to discuss the issues surrounding the abuse of certain drugs but intentionally deny that they themselves are addicts of another drug. Talk about hypocrisy. The amount of bad quality coffee out there in the streets is a real worry for the future of our society. Those people caught dealing in trash coffee should face severe penalties and it's time we took a stand and cleaned our nation free of instant coffee.
Recently, some Kings Cross coffee establishments have come under fire for not selling the drug their licence authorised them to sell but were selling something quite different, leafy and green. For the record I'd like to name 10 of the joints which serve reasonable coffee (but not the coffee houses that sell joints) in and around town.
SYDNEY'S TOP TEN COFFEES
1. Moors Expresso Bar, Sussex Street - Directly opposite the political nerve centre of the Australian labour movement this is the place where all important deals are made over a couple of flat whites.
2. Bill n Toni's, Stanley Street, East Sydney - An affordable Sydney institution but no corners are cut in the quality of coffee churned out here.
3. Bar Italia, Norton Street Leichhardt - The latte trendies have taken over this infamous set from the Academy award winning political thriller Rats in the Ranks
4. La Deliziosa, Great North Road, Five Dock - Kim Beazley has visited this family business a number of times sampling the great coffee and Italian pastries on offer
5. Bar Colluzzi, Victoria Street, Darlinghurst - Another Sydney institution over run by the latte set and wannabe actors.
6. McCafe, George Street - Consumerism is rife and sometimes a $1 cappuccino cuts the mustard. A place to go when you don't want to put on appearances.
7. Bar Luca, Phillip Street - For those times you're down but not entirely out at the State Industrial Relations Commission
8. Cafe Pelayo, Liverpool Street - Quiet and cosy cafe in the Spanish quarter of town.
9. Bar Milazzo, Pitt Street- A newcomer on the scene, tiny but very popular
10. Pasticceria Papa, Ramsay Road, Haberfield - In house bakery which serves good coffee along with varieties of traditional pastries.
So there you have it in a cocoa shell, some of finest businesses selling coffee around town. Find out for your self.
Editor's note: a glaring ommision from this list is The Hole in the Wall in Macquarie Streets - easily Sydney's best coffee on the run!
LABOUR REVIEW, 15 JULY 1999
Practices of External Providers of Employee Assistance Programs in Australia
Assessing the Impact of 12-Hour Shifts
ACTU Push to Limit Working Hours
Bargaining: the Year Ahead
Organising: Trade Union Strategy in International Perspective
Violence At Work
World Employment Report 1998-99
Practices of External Providers of Employee Assistance Programs in Australiaby Andrea Kirk
Employee Assistance Programs (EAPs) have become a common feature of enterprise agreements in the 1990s. Many such services are provided externally and a major concern is ensuring the programs mesh well with in house occupational health and safety management plans. This article is based on a survey of members of the Employee Assistance Professionals of Australia. Few providers have properly developed mechanisms for intergration and their primary function is as counselling services for employees and families.
(Journal of Occupational Health and Safety Australia and New Zealand; vol. 15, no. 3, June 1999)
The emergence of 12 hour shifts appears to stem from the competition of globalisation and the deregulation of the labour market, in which enterprise bargaining has encouraged the development of new work patterns. This study used a qualitative approach in which case studies of ten organisations across a variety of occupations provided data.
(Journal of Occupational Health and Safety Australia and New Zealand; vol. 15, no. 3, June 1999)
ACTU Push to Limit Working Hours
The ACTU has released interim guidelines on overtime and working hours to help employees balance their rest, recreation and family needs. The guidelines point out the health effects and the effects on family and social life of long hours and extended shifts and call for a limit of 12 hours overtime per week, 12 hours work per day, as well as limits on consecutive shifts. These guidlines have been developed in response to the increases in stress and the increase in the length of the average working day.
(Occupational Health and Safety Bulletin; vol. 8, no. 172, 23 June 1999; ACTU OHS Unit)
Bargaining: the Year Ahead
ACIRRT presents a a summary of the current industrial relations situation. Wages have been fairly stable for some time because of:
� A low inflation economy
� Restructuring of the workplace. 70% of workplaces use casuals, on third use outsourced labour and one quarter use agency workers.
� Economic uncertainty is a strong factor despite continued growth according to official statistics
� Employers have dominated bargaining with much emphasis on productivity improvement and offsets for wage rises.
� Unions power has declined and unions pacesetters have backed productivity based agreements
� Fragmentation of the workforce with lower union density, more non union collective agreements and individual agreements (AWAs).
The outlook seems set to be more of the same, but some unions are seeking to increase their relevance be focusing more on non-wage issues (eg the AMWU, CFMEU and the FSU) but there is no co-ordinated shift in union strategy as yet, despite the focus of the ACTU on working time issues.
This issue of the report also contains Peter Reith: his IR Agenda
A summary of the government's proposed changes to the industrial relations system (the second wave)
(IR Intelligence Report; issue 4, 1999)
Organising: Trade Union Strategy in International Perspective
Carla Lipsig-Mumme, of the Centre for Research on Work and Society at York University in Canada, is the author of the URCOT publication The Language of Organising: Trade Union Strategy in International Perspective. In the paper she compares and examines developments in Canada, the USA and Australia. Political, economic and social change have transformed the working and political environments, with a great change in the nature of work and the states reduced willingness to guarantee basic social rights, thought to have been cemented by the post war consensus of a welfare safety net.
This neo-liberalism has had differing impacts on the different sectors of the workforce, undermining solidarity across sectors and further dividing workers across nation borders. Lipsig-Mumme notes that organising is a key word used in the three countries reviewed but the term has differing emphases in each nation state.
She asks, "Can existing unions move beyond their current strategic anachronism and transform themselves sufficiently, creating a new internationalism, integrating it with new organising and anchoring it in the new communities of identity? Or do new unions relying on new points of solidarity, have to be created?
(URCOT Newsletter; no. 3/99, May-June 1999; URCOT monograph, July 1999)
Violence At Work
Duncan Chappell and Vittorio Di Martino have produced a report rich in case study material and strategy guidelines to deal with workplace violence. It highlights best practice and successful methods of prevention and is directed towards government policy makers, employers and trade unions and health and safety professionals.
(Chappell, Duncan and Di Martino, Vittorio; Violence At Work. Geneva: ILO, 1998)
World Employment Report 1998-99
The latest ILO global overview focuses particularly on the role of training and recent efforts to improve training systems against a backdrop of a continuing depressed employment situation and accelerating globalisation. The ILO estimates that between 25 and 30% of the world's labour force of 3 billion people is currently unemployed.
The nature of work is, in many instances, also changing and the changing demand for skills requires the development of highly responsive training systems.
This report focuses on newly industrialising countries and unemployment, the chronically depressed state of African economies and countries of the former Soviet Union and Eastern Europe. Also looks at youth unemployment and the increasing problem of mature workers and unemployment, and the need for continuous skill upgrades and ongoing training.
(International Labour Office. World Employment report 1998-99: Employability in the Global Economy. How Training Matters. Geneva: ILO, 1998)
by The Chaser, the fab new fortnightly newspaper
CANBERRA (Tuesday): The Minister for Industrial Relations, Mr Peter Reith has announced changes to his proposed Second Wave IR reform to overcome the problem seen recently at the Oakdale Colliery. Under the changes, employers will no longer have to pay their workers.
"The amendments will significantly reduce the burden on small business," Mr Reith said. "They are in line with the principle established at Oakdale that workers should not be entitled to their entitlements."
The Business Council of Australia has lent its cautious support to the Bill. "For too long, small business has had to put up with inefficient, burdensome entitlements to workers such as their pay. Such compliance costs are simply too onerous".
Mr Reith will be introducing the legislation, which he has called the Workplace Relations (More Jobs, Better Pay) Bill 1999, into the next session of parliament.
However, Democrat support for the bill remains uncertain, as internal divisions between the 'sell out' faction led by Meg Lees and the 'cross the floor' faction led by Natasha Stott-Despoja continue.
"I wish I was dealing with a Democrat who really agreed with the concept of crushing the unions," Mr Reith admitted, "but sadly she joined the Labor party."
The Bill is widely seen as a means for the government to reestablish credibility in the area of industrial relations after the politically damaging MUA dispute last year. Mr Reith has, however, denied that the legislation was originally entitled the Workplace Relations (Re-establish Leadership Aspirations) Bill.
Business has so far refused to give its full support to the bill claiming that it is a bit "lefty".
"The bill only makes it easier to dismiss someone unfairly, whereas we have consistently pushed for unfairness to be compulsory," said a spokesperson for the Business Council of Australia. "Obviously this will further hinder workplace efficiency."
The new changes also seek to make the 'no disadvantage' test more even. "In the past the 'no disadvantage' test was aimed at ensuring that workers weren't worse off under our bill," announced Minister Reith, "but now we will also allow bosses to use it to ensure that they aren't disadvantaged by scurrilous claims for more pay or safe workplaces."
Mr Reith also responded angrily to the suggestion that the lack of payments to the coalminers of the Oakdale colliery went against their promise that no worker would be worse off under their workplace reforms.
"We said that no worker would be worse off. Now, the Oakdale coalminers are unemployed. That means they are not workers. People can steal their wallets and beat them with hammers for all we care." said Mr Reith.
It is understood that such an approach will become compulsory under the Mr Reith's third wave of industrial reforms. The Third Wave of reforms will also see a toughening of the remaining 'privileges' afforded to workers. Sick leave will only be granted after workers produce a valid death certificate. Workers will only be entitled to public holidays if they agree to work double time the day before and maternity leave will only be available to employees who have been with the company for over 40 years.
Many have speculated that Reith is merely the lackey of another more sinister force. "There are always two, a master and an apprentice" said one commentator. Others have highlighted the striking physical resemblance between the hideous Emperor Palpatine in Return of the Jedi and Kerry Packer
Satire
Darth Reith's Workplace Relations (Phantom Menace) Bill
Even the ABC's "Sea Change" is tackling this issue, as Pearl Bay tries to recover from the double blow of the exit of both the bank and Diver Dan. While some viewers would happily dump the bank in exchange for Diver Dan's return, the Pearl Bay locals are considering establishing a community bank.
Community banks are small bank branches, owned and managed by the local community, with backing from a larger financial institution. To date, Bendigo Bank has been the leader in this field and a number of small rural towns have re-established banking services using this model.
But community banking is best considered as a fall back option after other efforts have failed, and the model is less suited to urban areas where there is less community spirit. What can be done to shore up banking services at the local level before the last bank closes its doors?
In NSW, the Local Government and Shires Association has been considering tackling this issue on a statewide basis, and are even toying with the option of opening a "People's Bank". In 1998 they established a Banking and Financial Services Taskforce to consider all the options, and the taskforce released an interim report in April 1999. (http://www.lgsa.org.au/finance/interim.htm)
While the interim report is well written and reasonable, and canvasses a range of roles which local governments might play, the often over-hyped media statements by NSW LGA President Cr Peter Woods give the impression that Local Councils are planing to set up a chain of bank branches around the country, and solve all of our banking problems once and for all.
Indeed, Peter Costello was able to (smugly) point to the People's Bank proposal when fending off questions about the lack of competition in banking services in Australia. Costello knows full well that the People's Bank will never get off the ground, and the proposal just seems to be giving the big banks breathing space in political fora where their massive profits and dwindling branch networks are under scrutiny.
Federal and State Governments have each taken their turn in running banks, with some reasonable successes and some spectacular failures. Local Government opening banks would be turning back the clock, and risking the stability of local finances on a commercial venture well outside the skill and expertise of local councils. The People's Bank Version 1.0 (the Commonwealth) was sold off with little thought for the consequences for local communities. No universal service obligations were applied to the privatised banks or the industry as a whole, and there was no 'social bonus' from the sale proceeds. But that is all in the past. A People's Bank Version 2.0 is not the solution.
A better alternative is to examine what preventative measures local government might take, to slow the pace of branch closures. Councillor Woods, in one of his saner media releases, argues that Local Government has enormous bargaining power. With $5 billion revenue in NSW, assets of $65 billion and a network of 177 Councils, local government does have some leverage. Most Councils tender out their own banking services. Obviously the final decision is largely based on price. When the bank which wins a tender later begins closing branches in that area, there is enormous political tension. But the contracts are often for five year periods and it is difficult to exercise any leverage during the early stages of a contract.
One option outlined in the interim Taskforce report, and the one which appeals to me the most, is for Local Councils to add some element of community obligation to these contracts for banking services. Over a long period, as the contracts come up for renewal, local government can win back some ground from the banks. The type of commitment they can ask for might include branch numbers, branch opening hours and community reinvestment. In order to win government contracts, banks would have to show a commitment to the whole community.
It won't be the "People's Bank". Locals won't own any part of the bank itself. It may not win the votes and headlines that a People's Bank might attract. It will also take a long time to make an impact. But it will restore a community role in banking, and in conjunction with other efforts, can serve to remind the banks of their wider social obligations.
Chris Connolly is the Director of the Financial Services Consumer Policy Centre and General Editor of the Internet Law Bulletin
A huge week in sport:Blighty has signaled his intention to throw in the coaching towel, Peter Carey is about to pull on the maggot's uniform for the 300th time and we'll be seeing whether the Socceroo No-Names can get one back from the best club team in the world.
The coming week might also see the NRL finally bag a Tiger on their Murdoch financed safari. They have the rabbit in their sights as well which should concern us all. Ah the League! My memories of league are distant and fading. Disgusted at the dismissal of the Bluebags from the NSWRL way back when, I embraced the Swans and find myself watching a couple of games of league a year. I can't give up the Bluebags - they still run around in the Metropolitan Cup and the mention of their name is enough for me to recall the day when Tommy scored in front of 57,000 people at the SCG and I dreamt the impossible.
The Magic Sponge is a concept, it's a website but most importantly it's a radio show on FBi 96.9 FM. FBi is one of several aspirant community radio stations looking for a rails run in the lead up to straight in the Australian Broadcasting Authority Plate. The ABA has yet to name a venue or time for the running of the plate. It's a Group 1 event - the prize being a full-time licence to broadcast. Since 1995 we've done 10 test transmissions - we're currently on air until the end of August broadcasting out of the Armfield Room at the University of Sydney.
The show is The Magic Sponge, the station is FBi, and the frequency is 96.9FM. We're on a small kickback from the Australian Meat and Livestock Corporation. We have no ethics, but it's OK, we're entertainers not journalists and if you've got a problem with that you're obviously a no-talent weazel.
This week we'll be asking the big questions and we'll be yelling our favourite stuff like "stick to novels Carey you maggot". It's a constant source of amazement that Carey finds time to umpire in between churning out the likes of Oscar and Lucinda, the Tax Inspector and Jack Maggs. Few literary critics have picked up on the fact that Bliss is based on the life and times of Bruce Doull. Carey is a master of the publicity moment, which is why he took the mark last week in the lead up to his 300th game. My friends and I are left pondering why he didn't sweep the ball downfield to umpire Cameron. Imagine the McAveny commentary.
Carey takes a STRONG MARK , and sends a BOOMING kick down to umpire Leon Cameron who takes a strong grab in front of the pack he plays on, flicks off a blind handball to the running Scroop he's just on the fifty and lets loooooose. It's a BIG ONE. It's going, it's going it's GONE. It's a GOAL. Gee that was SPECIAL wasn't it. Put that goal down to the umpires. Gee that was GOOD! The umpires hit the LEAD!
Now cut to the ad break, or if you are at the ground go and join the beer queue and wait for the double flash of the lights which signifies both the end of a commercial break and the fragile balance between life and death. As Beckett might have written, we are born astride the grave. Beckett of course is the only Nobel Prizewinner to make it into Wisden. Pozzo and Lucky were actually loosely based around those great Bodyline bowlers Larwood and Voce. Witness the existential tragedy of Waiting for Godot and the fact that Larwood never got to pull on the creams for England following the 1932 Australian tour. Let's just hope that your team doesn't end up hanging from the NRL rope, if it's any consolation we'll be doing readings from the book of Tufnell this week on the Magic Sponge from 10:30 am Saturday morning on FBi 96.9 FM.
Neill Jones is a Board member of FBi, a member of the loose collective known as The Magic Sponge. And a mediocre football tipper.
Women at the briefing, held by the ACTU and the Women's Committee of the Labor Council of NSW, heard from West Australian ACTU member Helen Creed, who has seen firsthand the effects of changes like those Small Business Minister Peter Reith wants to introduce in his second round of industrial laws. Creed, WA secretary of the LHMU, told reps women were now making only 77% of men's wages compared to around 85% before WA embarked on rolling back wages and conditions.
ACTU president Jennie George told the reps the gender gap had already widened nationally in the two years since Reith's laws had started, particularly in hospitality. She urged women to act now to contribute to the Senate inquiry initiated by the Democrats into the effects of the laws.
George said that one million women depended solely on the award system for their wages. This would be further eroded with Reith's plans to strip protections including super, accident makeup pay, classification structures, transfer entitlements, and paid maternity and extra sick leave from awards.
George said even more frightening was the fact that Reith was threatening holding off on safety net adjustments until these conditions had been handed over, and warned: "What you will lose is much more than what you will gain."
She also spoke about NZ, stressing that deregulation did not make more jobs, did not increase pay and, coupled with the GST, meant economic and social disaster ahead.
The legislation, to be discussed in the next session of Federal Parliament, in August, aims to obliterate unions by squeezing both employers and vulnerable members. A new definition of "closed shop" would see the Employment Advocate investigating any workplace where union membership was more than 60%, looking for signs of coercion. This could range from things like employers allowing the union to be present for inductions, or just by supporting the unions through a friendly message.
Another move, to only let employers have unions in the workplace when invited by a member, and then only in a special segregated room, would undoubtedly have the effect of making many women scared to come forward.
ACTU industrial officer Linda Rubenstein said Reith's closed shop legislation was specifically aiming at women in the industries where membership was concentrated - retail and finance, and possibly also nursing and teaching. She said the intent was to intimidate people psychologically by making them feel there's something "not quite legal" in being a union member, if a workplace gets investigated for having "too many" members.
Women were also the targets in unfair dismissal legislation, which only applied in businesses where more than 15 people worked and facing having to put up costs before a case progressed, with the possible outcome of having costs awarded against them.
Labor MP Jenny Macklin also spoke at the briefing, which was chaired by Labor Council vice-president (and NSW Nurses' Association secretary) Sam Moait. Labor Council announced that Federal Opposition leader Kim Beazley will launch the ALP's campaign against the second wave at Bronte Park at 12.30pm on Sunday, 8 August.
But no sign of the warty one! We scoured the Tele, past Page 13, beyond Marilyn Parker, up to the World News. Where could he be hiding? Sport? Come on, the closest thing to exercise Piers gets is having lunch.
We began making inquiries. An alert was put out around the better eating establishments of the inner city. But no sign of Piers, not even a stain.
Slowly information began filtering in. An overseas junket of some sort. Then a call from a spy in Amsterdam. A man matching Piers description in the home of social liberalism. Surely, he was not taking our reward that seriously!
Whatever, a camera has been dispatched to our Dutch informer. We await his holiday snaps with much anticipation!
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With all the navel gazing going on at the moment among the city's professional navel gazers, it's interesting to consider what line Piers would have taken in the Laws saga if he were here.
Given the story was broken by Media Watch there would have been a knee-jerk dismissal of the story as the work of the politically correct gestapo at Gore Hill (my words, but Piers is free to borrow them).
Indeed, the Telegraph was running the Laws story way up the back past Marilyn on Wednesday before the DPP, ABA and PM stepped into the fray.
Once the story became national news largely driven by the Sydney Morning Herald string of front page stories, Piers could have been expected to dismiss it at as a beat-up by the elite wankers of the boring broadsheet.
In fact, Piers' space on Thursday was filled by the Golden Larynx himself, dismissing it as a beat-up by the elite wankers of the boring broadsheet.
What we can confidently predict you wouldn't have seen is an expose on the inevitable tension between commercial considerations and editorial independence.
When you're working for the richest man in Australia (is he still an Australian?) these are not the sorts of things you talk about.
So maybe there's no reason to miss Piers after all!
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What Workers Online finds amusing about this whole episode is the naive premise from which all this outrage has emerged. As if there was some surprise that our most visible talking heads are the hands of corporate interests.
Radio talkback hosts regularly read advertisements; with nothing but the blatant plug at the end to differentiate it in any way from the core(?), non-advertorial content. Maybe Laws is right that the lines between entertainer and journalist has faded; but next time he or one of his kind pontificate about the world, they may restrain themselves from pretending their words have any enduring meaning.
And where do we stand as a new media player (albeit a tiny one)?
At least Workers Online is upfront on where we are coming from. We are a resource for the trade union movement that runs a pro-trade union line. We choose not to gratuitously dump on union officials. If there is a union election we chose not to air the dirt that may be thrown in the heat of the battle. We put information out into the public domain from a clear and unambiguous perspective.
But here's the difference. We do so because we actually believe in it - not because we get $1.2 million for our compliance.
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