FIXING the current flawed process for setting employment conditions on new resource sector projects is critical to securing ongoing investment and growth, says the industry’s national employer group AMMA in its analysis of the government’s proposed Fair Work changes.

In its detailed submission to the Senate Committee reviewing the Fair Work Amendment Bill 2014, AMMA argues that a more realistic process for new projects (or ‘greenfields’) agreement-making is vital if Australia is to secure the $208 billion in uncommitted resources investment.

“We welcome the government’s acknowledgement that handing unions’ the keys to new projects has led to excessive wages and conditions being extorted from the resource industry over the past five years,” says AMMA executive director Scott Barklamb.

“In 2013, a cook working for six months on offshore resources project construction was earning $355,000; 47% or $105k more than the same role in 2007. Barge welders now command $2180 per day, or about $396,000 for working six months (see wages chart here).

“Such inflated wages are a direct result of the former government giving unions a virtual monopoly on new project agreement-making, effectively allowing them to set their own employment conditions which the industry has had little option but to accept.

“Our country simply cannot viably compete for future mega-resources projects when our workplace relations system imposes such uncommercial and unsustainable obligations.”

Analysis from McKinsey  shows Australia’s construction labour costs are 20-30% higher than in the United States, while building a comparable LNG project in Canada costs 20-30% less.  Key Labor figures Martin Ferguson and Paul Howes have recently joined industry in warning that Australia must take this competitive threat seriously.

“The amendment bill is a positive step towards a more realistic process for new project agreements. However, AMMA is concerned about the requirement to not only better the award safety net, but to meet even higher ‘prevailing industry standards’ before new project arrangements are approved,” Mr Barklamb says.

“While perhaps intended to stop the ‘leap-frogging’ of wages from one construction contract to the next, employers fear the government’s proposed test may inadvertently lock-in the currently inflated and unsustainable wage levels as the benchmark for all future projects.

“If our nation is to compete with not only emerging resource suppliers but also comparable economies such as the US and Canada, we must allow market realities to inform the employment conditions from project to project.”

For new projects, AMMA’s submission recommends removing the proposed ‘prevailing industry standards test’ in favour of maintaining the three existing tests (the National Employment Standards safety net, the Better Off Overall Test and the public interest test).

“The three existing tests are more than adequate to protect employees without any unintended consequences. We look forward to working further with the government and all those interested in getting this critically important policy area right,” Mr Barklamb says.

www.amma.org.au

ends

VECCI Chief Executive Mark Stone has welcomed the announced upgrade by Transurban of CityLink from the Bolte Bridge to Melrose Drive.

“The 700 jobs, expected 30 per cent increase in capacity and anticipated cut to the travel time between the Westgate Freeway and Melbourne Airport created by this project will provide undoubted benefits for Melbourne and Victoria,” Mr Stone said.

“The final piece of the puzzle is to continue the widening of the Tullamarine Freeway all the way to the Airport and VECCI urges the State Government to ensure this happens too. 

“The East West Link, widened CityLink and Tullamarine Freeway and the Airport Rail Link will enhance Melbourne as a destination and greatly improve the movement of people and goods across our city and State.”

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

ends

Peak retail industry body the Australian Retailers Association together with the Industry Security Initiative is encouraging cardholders to prepare for 1 August 2014 – when PIN will become the main form of card payment authorisation in Australia. 

ARA Executive Director Russell Zimmerman said the industry-wide move to expand PIN at point-of-sale (POS) and phase-out signature as a form of verification on Australian credit and debit cards is welcome move by Australian retailers.

“The phasing out of signature verification will take place over a short transition period from 1 August, as POS terminals migrate to new software.

“The move to PIN is about strengthening payment security across Australia and takes advantage of the ‘chip’ technology on Australian payment cards. This initiative will help protect consumers and retailers alike from fraudsters.

“Starting with some of the nation’s largest merchants, the move will gradually see all of Australia’s 800,000 merchant payment terminals undergo a software update to require PIN at the point of sale. For most, these costs will be covered by the terminal’s provider.

“The real change for expanding PIN usage will be a behavioural one. Habits at point of sale will require some adjustment and consideration; however, it is a move that will help safeguard against fraud, making cards even safer to use.

“While the financial institutions will be communicating the change to their customers, those businesses that may require new technology should proactively speak to their terminal provider about upgrading their equipment to ensure that they’re ready for increased PIN use by August.

“It is also important to note there will be no change to contactless or online transactions and for visitors from overseas, signature will still be a valid form of verification.

“The ARA is impressed with the Industry Security Initiative’s new folder of artwork that is now available to all merchants – all they have to do is go online, print the necessary documents and use within their own stores. This collateral aims to inform customers of the need to get ready for the switch to PIN, and to take action before August 1.

“The ARA encourages the retail industry to embrace this change as reducing fraud saves both time and money, allowing retailers to get on with the job of doing business,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041

ends

PEAK retail industry body the Australian Retailers Association (ARA) encourages all retailers to understand the trading restrictions that apply to their business this ANZAC Day – Friday 25 April.
 
ARA Executive Director Russell Zimmerman said confusion is common for business owners when it comes to organising rosters around public holidays and trading hours.
 
"Given the fact that all states and territories have quite different restrictions when it comes to public holiday trade, it's important for retailers to do their research and ensure they understand their legal obligations during this time,” Mr Zimmerman said.
 
Please see table below:

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

ends