Vic. Chamber comments on final report from Productivity Commission’s review of Australia’s Workplace Relations Framework

THE Victorian Chamber’s submission to the Productivity Commission (PC) has argued that the key outcomes of its review of Australia’s workplace relations framework must be the creation of a simpler, fairer and more efficient framework that spurs economic growth, increased productivity and improved business competitiveness.
                                                                         
Victorian Chamber chief executive Mark Stone said he welcomed a number of the final report’s recommendations including:

• Aligning penalty rates on Sundays in hospitality, entertainment, retail, restaurants and cafes with Saturday rates.
• Reform to curtail the cost impost of state based public holidays in addition to the national public holidays, as recently seen with the introduction of two new public holidays in Victoria.
• An emphasis on substance rather than process for unfair dismissal claims.
• The return of upfront assessments of unfair dismissal claims in some circumstances, which would limit the time and effort spent by employers in defending unmeritorious claims.
• Recognition that the enterprise agreement approval process is overly rigid and requires reform.
• Addressing ‘strike first, talk later’ tactics that subject business to costly disruptions. The PC has recommended prohibitions and restrictions that would limit this avenue.
• The PC’s assessment that the costs involved with expanding existing portable long service schemes would not be justified, given this would effectively introduce an additional employment tax on business with no associated benefit. 

"However, the report falls short in removing costly and lengthy general protections claims, though it does propose reforms to limit the ability of frivolous and vexatious claims to proceed, and for greater powers to award costs against applicants," Mr Stone said.

"We are disappointed that our recommendation to remove the ‘complaints’ element of the expansive general protections regime was not adopted, despite our analysis revealing only one successful case in over six years that would not have attracted protection under prior legislation. The thousands of claims against employers and rise in ‘go away money’ are therefore set to continue.

"The report also misses the opportunity to recommend crucial changes to restrict access to unfair dismissal claims, including for high income earners and genuine redundancy situations.

"Despite urging the PC to remove the burden of unfair dismissal for businesses with under 20 employees, this recommendation was not part of the final report, meaning small business will continue to spend time and money defending claims rather than running their businesses," Mr Stone said.

"We now urge the government to consider the recommendations of the PC and take on the heavy lifting required to legislate much needed reforms for business."

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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