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Ramsay Review Interim Report – dangerously undermining EDR in financial services says CIO

THE Credit and Investments Ombudsman (CIO) has rejected a recommendation that CIO and the Financial Ombudsman Service (FOS) should be replaced by a single ombudsman scheme, in its response to the Interim Report into Australia’s three financial sector Ombudsman schemes by a panel led by Professor Ian Ramsay.

According to CIO’s Ombudsman and Chief Executive, Raj Venga, the proposed single ombudsman scheme would be "far less accountable and transparent to its stakeholders than a statutory scheme. A statutory scheme is subject to important checks and balances and, in the absence of these, the only check on the broad discretions and powers of a non-statutory scheme is the existence of two ombudsman schemes operating in the same sector and benchmarking their performance against each other."

Mr Venga noted the irony that "the Interim Report failed to explain how the proposed single ombudsman scheme would deal with major banking and insurance scandals of the kind which invited the scrutiny of numerous parliamentary inquiries, prompted calls for a Royal Commission, and which spurred the Government to commission the review in the first place."

Mr Venga was also critical of the lack of economic analysis undertaken by the review.

"For example, the recommendation for a single scheme was only supported by anecdotal evidence from some consumer advocacy organisations – organisations which represent less than five per cent of consumers lodging complaints with CIO and FOS," said Mr Venga.

Given this lack of economic evidence, CIO commissioned its own independent economic analysis of the Interim Report’s recommendation. According to ACIL Allen Consulting:

  • The proposal to introduce a single ombudsman scheme is not supported by economic analysis, sound argument or evidence. The Report does not demonstrate any cost benefits to replacing CIO and FOS with a single scheme.
     
  • None of the perceived problems identified in the Report would be addressed by introducing a single scheme. In fact, a single scheme would create problems that do not currently exist.
     
  • A single scheme would see the loss of the benefits the existing two schemes currently provide: price competition, service quality comparison, pressure to keep costs down, and innovate with better processes and services.
     
  • A monopoly not-for-profit organisation, such as the single ombudsman scheme being proposed, can cause the same amount of economic damage as a monopoly for-profit organisation, by charging more and spending the proceeds on bloated staff numbers, excessive executive compensation, lavish offices and other wasteful spending – as well as providing poor service.

Mr Venga reiterated his concerns that "small businesses would not be better off under a single ombudsman scheme because it would lack the appropriate powers and expertise to deal effectively with their complaints. The Ramsay review ignored the weight of evidence that small businesses would be better served by their own limited scope statutory tribunal for disputes outside the existing remit of CIO and FOS."

Mr Venga noted that it was ironic that the major banks were the big winners of a review specifically commissioned to address the scandals attributed to them.

"The major banks, who are members of FOS, would be the main beneficiaries of the proposed single ombudsman monopoly because their ombudsman costs will be subsidised by the influx of more than 23,000 smaller financial firms (who are presently members of CIO) being forced to join a single scheme.

"Equally, smaller and more innovative financial firms, including fintech disrupters, operating on thinner margins and not having the benefits of scale and incumbency, would be least able to absorb or pass on any increased cost that may result from an inefficient single scheme monopoly," said Mr Venga.

Significantly, Mr Venga noted that "it was disappointing that the Interim Report placed little or no weight on submissions made by a number of industry bodies in support of the retention of the two ombudsman scheme model. Their members represent about 97% of the entire financial services industry and are a crucial source of competition to the major banks."

Mr Venga further commented that "the Report is also silent on how the creation of a single scheme would lead to lower costs, greater efficiencies and better outcomes. Almost all the submissions made by industry to the Review expressed concern that a single scheme monopoly would lead to higher costs, inefficiencies and poorer outcomes – advice which was totally ignored by the Review Panel."

Mr Venga reiterated his previous view that recommendations of the review panel were "a solution looking for a problem", and implored the Review to focus on enhancing the current competitive market for dispute resolution, rather than making change for the sake of change.

The Credit and Investments Ombudsman

The Credit and Investments Ombudsman (CIO) is an alternative dispute resolution scheme approved by the Australian Securities and Investments Commission to provide consumers with an alternative to legal proceedings for resolving disputes with financial services providers who are members of CIO. These include finance brokers, non-bank lenders, building societies, mutual banks, credit unions, financial planners, finance companies, debt purchasers, small amount short term lenders and mortgage managers.

www.cio.org.au

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ABS December trade figures deliver 3pc annual Christmas growth for retailers

THE Australian Retailers Association (ARA) believes the December 2016 retail trade figures released today by the Australian Bureau of Statistics (ABS) illustrate a positive Christmas performance for retailers with a 3 percent growth year-on-year (seasonally adjusted).

ARA Executive Director, Russell Zimmerman, said this steady growth compliments the 3 percent year-on year growth in November 2016 as many families across Australia started purchasing their Christmas gifts early.

“This moderate growth in December sales is a positive sign for the industry and we remain hopeful that the ARA and Roy Morgan predicted pre-Christmas sales figure of $48.1 billion will be achieved once we finalise the numbers,” Mr Zimmerman said.

Although December 2016 sales showed no increase over November 2016 trade figures, Mr Zimmerman said the industry’s annual Christmas performance remains stable and the uplift in discretionary spend is exactly what the industry would expect.

As always, a number of categories saw a significant surge over the Christmas period. Clothing, Footwear and Personal Accessory Retailing lead the categories growing at 7.32 percent year-on-year, followed closely by Pharmaceutical, Cosmetic and Toiletry Goods (5.33% year-on-year).

“Even Newspaper and Book Retailing has shown a positive uplift from -6 percent during November 2016 trading, to an optimistic 0.91 percent growth due to many shoppers filling their Christmas stockings with popular book titles last year”, Mr Zimmerman said.

“We’ve seen a slight decrease in takeaway food services, which usually demonstrates strong growth, though we’ve also seen cafés and restaurants up 2.4 percent as more shoppers spent their holidays out and about enjoying their time with families and friends.”

The official closure of Masters during December took its toll on the Hardware category (1.76% year-on-year) down from 10.15 percent in November 2016 figures.

“We have seen an expected decrease in hardware figures temporarily, but now with reduced discounting and strong home price growth we can expect positive figures moving forward,” Mr Zimmerman said.

Though Department Store figures are still negative (-2.94% year-on-year), they are showing signs of marginal improvement. The category is making a gradual recovery from a downturn attributed to the recent restructure of a number of prominent department store retailers.

The states showing a healthy year-on-year growth include Tasmania (4.40%), South Australia (3.92%), New South Wales (3.37%) and Queensland (3.42%). While Victoria (2.96%), Australian Capital Territory (2.83%), Northern Territory (1.49%) and Western Australia (0.85%) aren’t leading the pack, they still demonstrated a positive growth over the December trading period.

In terms of online spend for December, the NAB Online Retail Sales Index indicates that e-commerce sales increased 10.4 percent year-on-year, with takeaway food and taking the lion’s share of growth on a category basis at 5.5 percent year-on-year.

“With online retail making up 7 percent of all retail sales, it’s double digit growth year-on-year is not surprising as e-commerce retailing is a key contributor to the retail industry as a whole,” Mr Zimmerman said.

MONTHLY RETAIL GROWTH (November 2016 – December 2016 seasonally adjusted)

Household goods retailing (-2.3%), Other retailing (-0.2%), Food retailing (0.5%), Clothing, footwear and personal accessory retailing (1.4%), Cafes, restaurants and takeaway food services (0.2%) and Department stores (0.3%). Total sales (-0.1%). 

Northern Territory (1.1%), South Australia (1.2%), Australian Capital Territory (-0.7%), Victoria (-0.4%), Tasmania (0.5%), Western Australia (0.6%), New South Wales (-0.3%) and Queensland (0.0%).

YEAR-ON-YEAR RETAIL GROWTH (December 2015 – December 2016 seasonally adjusted)

Household goods retailing (0.94%), Cafes, restaurants and takeaway food services (5.15%), Food retailing (2.89%), Clothing, footwear and personal accessory retailing (7.32%), Other retailing (4.27%) and Department stores (-2.94%). Total sales (3.02%).

New South Wales (3.37%), South Australia (3.93%), Tasmania (4.40%), Victoria (2.96%), Australian Capital Territory (2.83%), Western Australia (0.86%), Queensland (3.42%) and Northern Territory (1.50%).

 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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IPA: push tax relief for small entities

THE Enterprise Tax Plan Bill is unlikely to pass through the Senate unless the granting of tax relief for large entities (turnover in excess of $10 million) is removed from the bill, according to the Institute of Public Accountants (IPA).

“By removing these entities at this point of time, the bill could successfully progress through Parliament and provide much needed tax relief for SMEs,” said IPA chief executive officer, Andrew Conway.

“The bill currently contains company tax relief for large entities over a 10 year period but these entities may have to wait as there seems little chance these reforms will pass through the Senate and their inclusion in this bill would therefore be at the detriment of other tax relief measures for smaller entities.

“We don’t oppose tax cuts for the larger entities but not at the detriment of smaller ones.

“With 61 percent of actively trading small businesses (turnover of less than $2 million) being non-employing, moving the tax threshold for access to small business concessions to entities up to $10 million can potentially contribute to more employment as such entities are already employing entities.

“The revenue foregone is likely to be substantially covered by the economic benefits from increased employment, higher wages and lower compliance costs,” said Mr Conway.

These recommendations form part of the IPA’s pre-Budget submission. 

 

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 35,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.  The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.  

publicaccountants.org.au

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Two Kimba landowners submit voluntary applications to host a National Radioactive Waste Management Facility

THE Australian Government has received two new voluntary nominations to host a National Radioactive Waste Management Facility from landowners in the Kimba region in South Australia.

The facility would hold Australian low and intermediate level waste largely associated with nuclear medicine production.

Minister for Resources and Northern Australia Senator Matt Canavan said no decision had been made as to whether the nominations will be accepted.

Under the National Radioactive Waste Management Act 2012, a landowner may nominate land to host this facility until a final site is decided upon by the Australian Government.

Both new sites will be subject to a comprehensive analysis, including scoring them on measures such as technical suitability, community wellbeing, health, safety, and the environment.

Details of the site selection process are available at www.radioactivewaste.gov.au/site-selection-process/assessing-site, and details of nomination guidelines and multi-criteria analysis are at www.radioactivewaste.gov.au/site-selection-process/nominating-site.

“The Government has always said it remains open to receiving new land nominations, and that each would be assessed on the individual merits of the site,” Minister Canavan said.

The two new nominations relate to different parcels of land than those that were assessed, but not progressed, in the Kimba region in 2016.

“I have asked my department to begin reviewing the new nominations, and advise as to whether either should be progressed further and shortlisted,” Minister Canavan said.

“If that is the case, and I progress a nomination, public consultation of no less than 60 days would begin to determine if broad community support exists to take this nomination to a further, second phase of detailed technical review and consultation.”

The second-phase assessment of a nominated site at Barndioota is continuing and includes an Independent Heritage Assessment, site-specific technical studies and detailed public consultation.

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Four major banks face further parliamentary scrutiny

THE House of Representatives Standing Committee on Economics will conduct further public hearings with Australia’s four major banks in March as part of its review of the performance of Australia’s banking and financial system.

The Chair of the committee, Mr David Coleman, MP, stated that ‘these hearings provide an important mechanism to hold the banking sector to account before the Parliament.’

The committee will continue to hold public hearings with the four major banks focusing on:

  • domestic and international financial market developments as they relate to the Australian banking sector and how these are affecting Australia
  • developments in prudential regulation, including capital requirements, and how these are affecting the policies of Australian banks
  • the costs of funds, impacts on margins and the basis for bank pricing decisions, and
  • how  individual banks and the banking industry as a whole  are responding to issues previously raised in Parliamentary and other inquiries, including through the Australian Bankers' Association's April 2016 six point plan to enhance consumer protections  and  in response to Government reforms and actions by regulators.

Public Hearing Details

Day 1: Friday 3 March 2017
Committee Room 2R1, Parliament House, Canberra
NAB
9:15am to 12:15pm

Day 2: Tuesday 7 March 2017
Main Committee Room, Parliament House, Canberra
CBA
9:15am to 12:15pm
ANZ
1:15pm to 4:15pm

Day 3: Wednesday 8 March 2017
Main Committee Room, Parliament House, Canberra
Westpac
9:15am to 12:15pm

The hearings will be broadcast live at aph.gov.au/live. 

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'Lion' makes over $11 million in 11 days at Australian box office

THE MAGNIFICENT success of the Australian film Lion continues, with the film taking $11.5 million in the 11 days since it was released in local cinemas.

Saroo Brierley’s incredible true story about love, hope and family has held the Number One position at the Australian box office for the second weekend in a row, a record for an independent Australian film.

The box office for the second weekend of release moves Lion further up the record books. The Great Gatsby is the only Australian film to have taken more on the second weekend. *

Following the exciting news last week that the film had received six Academy Award nominations, including one for Best Film, Lion is also winning the hearts of New Zealand audiences with a second weekend at the top of the local box office with NZD$1.2 million.

The Australian story continues to win hearts all around the world, having grossed almost $50 million in worldwide box office to date. Lion expands to over 1,800 screens in the US this Friday.

"It is so gratifying to see Saroo's story connect with audiences.  The positive feedback has been overwhelming.  At a time when the world seems to be fractured, LION offers hope and joy.  Its themes of love and family shine bright for audiences worldwide," said Richard Payten and Andrew Mackie from Australian distributor Transmission Films.

Lion is directed by Garth Davis from a screenplay by Luke Davies and it stars Dev Patel, Nicole Kidman, Rooney Mara, David Wenham and Sunny Pawar. See-Saw Films (The King’s Speech) produced the film in association with Aquarius Films and Sunstar Entertainment. Emile Sherman, Iain Canning and Angie Fielder are producers with Andrew Fraser, Shahen Mekertichian and Daniel Levin executive producing.

* Second weekend Box Office grosses for Australian films:

Great Gatsby - $4,561,335

Lion - $4,179,886

Mad Max: Fury Road - $4,169,178

Australia - $4,125,211

Happy Feet - $4,121,050

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AMMA chief executive Steve Knott appointed Member of the Order of Australia

AMMA chief executive Steve Knott has this Australia Day been appointed a Member in the General Division of the Order of Australia (AM) for “significant service to the resources and energy industries, to the advancement of women, and to industrial relations”.

Mr Knott has led Australia’s resource industry employer group, AMMA, since 1998.

Over almost two decades he has overseen the organisation’s national policy development, workplace consulting services and employment support programs during a period where the industry’s workforce grew from about 85,000 employees to now directly employ 228,000 Australians.

In his role as one of Australia’s leading identities for the national resources and energy industries, as well as one of the country’s preeminent industrial relations specialists, Mr Knott has consistently advocated for policy and industry outcomes that promote AMMA’s long held vision:

To ensure the Australian resource industry is an attractive and competitive place to employ people, invest, do business and contribute to Australia’s national wellbeing.

In addition to leading AMMA, Mr Knott’s contribution to industrial relations in Australia extends to multiple advisory councils and board positions including: 

  • Member of the International Labour Advisory Council since 2006.
  • Represented the resources sector and Australian employers generally at numerous International Labour Organisation forums in Geneva and the Asia Pacific Region.
  • Member of the National Workplace Relations Consultative Council since 2006.
  • Member of the Ministerial Advisory Council on Skilled Migration since 2015.
  • Director of the Australian Chamber of Commerce and Industry (ACCI) since 2014, and member of the ACCI General Council since 1998.

Mr Knott’s contribution to the advancement of women has primarily been through leadership of the Australian Women in Resources Alliance (AWRA), an Australian Government-backed initiative which since 2011 has worked to lift the number of women working within the resources, energy and allied construction and servicing sectors.

Among the programs overseen by Mr Knott to provide women with greater opportunity in the resources sector include specialist mentoring, implementing best practice diversity and recruitment processes within resource companies and developing innovative employer toolkits and support materials for greater workforce diversity outcomes.

“Being appointed a Member of the Order of Australia is a proud and special moment.  I am thankful that throughout my career I have been able to passionately advocate for policy and industry outcomes that maximise the employment opportunities available to Australians in our diverse and wonderful resources and energy sectors,” Mr Knott said.

“I wish to offer my sincere gratitude to the many people over my working life whom without their support this award would not have been possible.  I have been fortunate to have some great career and life mentors. This, together with working in an industry that provides prosperity here in Australia and abroad, is an absolute privilege.”
 
BACKGROUND

Steve Knott now resides in Melbourne however is proudly ‘born and bred’ in Tasmania, having attended Montagu Bay Primary, Rose Bay High and Hobart Technical College.

He is well known for an amateur track and field career in which he won more than 100 state titles, held national titles in both the long jump and pole vault, and compete in the 1982 Commonwealth Games three years after having open heart surgery.

Prior to joining AMMA he worked at Tasmania’s Hydro Electric Commission in roles ranging from Principal Industrial Advocate and Site Construction Industrial Officer through to IR and HR Manager Tasmania.

Mr Knott holds a post graduate diploma in business administration from Monash University and has professional memberships with the Australian Institute of Company Directors, the Industrial Relations Society of Victoria, and is also a Fellow of the Australian Human Resources Institute.

www.amma.org.au

 

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QRC backs gas pilot project

THE Queensland Resources Council (QRC) supports the state government’s release of land in the Surat Basin for gas exploration.

QRC’s Chief Executive Ian Macfarlane said the pilot exploration project announced today will see the gas produced with an Australia-only sale condition.
 
“The gas produced will only be sold domestically that will help secure a reliable and affordable supply of gas to business and industry,” Mr Macfarlane said.
 
“It’s common knowledge the eastern seaboard of Australia is facing a gas shortage and instead of putting their head in the sand the government is opening up 58 square kilometers of land for exploration.
 
“Once again Queensland is leading the way in securing the energy security of Australia.
 
“The proactive release of new tenure conditioned for domestic market is an innovative response by the Queensland government to the lack of political back-bone shown by the governments of NSW and Victoria.
 
“The pilot should also be seen as chance to demonstrate best-practice regulations in action – fast, effective and focussed on outcomes.
 
“The Queensland government has set an aspirational goal of 50 percent renewables by 2030 and to achieve this goal will require a lot more gas if we are to keeping the lights on and protect Queensland jobs in manufacturing and energy intensive export industries.”

www.qrc.org.au

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TPP fired by Trump

NEW United States President Donald Trump has honored his election commitment, and withdrawn the United States from the Trans-Pacific Partnership negotiations and agreement (TPP). 

QUT Faculty of Law intellectual property expert and international trade, Professor Matthew Rimmer, said Mr Trump had directed the United States Trade Representative ‘to begin pursuing, wherever possible, bilateral trade negotiations to promote American industry, protect American workers, and raise American wages.’
 
Professor Rimmer said Mr Trump’s clear opposition to the TPP was one of the reasons why he prevailed against Hillary Clinton in the presidential race.
 
“The Republican candidate was able to win key Midwest states in a Rustbelt Brexit, highlighting the impact of trade deals upon the manufacturing sector of the United States,” he said.
 
“Hillary Clinton flip-flopped on her position over the TPP during the campaign. Trump was able to exploit this equivocation during the presidential race.”
 
Professor Rimmer said Donald Trump seemed to be focused on the renegotiation of the North American Free Trade Agreement (NAFTA), with Canada and possibly Mexico and was keen on a trade agreement with the United Kingdom Post-Brexit.
 
The US President has also engaged in threats of action against China over trade, currency, and intellectual property.

“It remains to be seen whether such policies will ‘Make America Great Again’ and revive United States manufacturing, particularly in light of the fast pace of technological change and innovation.”
 
Professor Rimmer said the withdrawal of the United States from the TPP had caused consternation within the Australian Government.
 
“The Turnbull Government has said that it will explore the possibility of a TPP – without the participation of the United States. This would be a complex undertaking.
 
“Many of the key chapters of the TPP – focused on intellectual property, investment, and
electronic commerce– were dictated by the United States Trade Representative. Such measures make little sense, without the countervailing access to United States markets.”
 
He said China had seized its diplomatic opportunity and promoted the Regional Comprehensive Economic Partnership (RCEP).
 
“Australia has shown great interest in this alternative regional agreement as a means of consolidating a range of bilateral initiatives.
 
“Europe and Germany have also expressed a desire to forge fair trade deals with nations in the Asia-Pacific. The Turnbull Government is excited about the prospects of a partnership with the European Union.”
 
Professor Rimmer said the collapse of the TPP highlighted the need for Australia to modernize its model of conducting trade negotiations. The Productivity Commission report on Australia’s Intellectual Property Arrangements highlights the need for an open and transparent approach to trade, and independent, economic assessments of new trade agreements. There is also a need to better take into account the impact of trade agreements upon public health, the environment, and labor rights.
 
“The Turnbull Government has shown an interest in aligning its trade policy and its innovation policy.  This could be a fruitful and strategic approach in the future.”
 
Professor Rimmer convened a symposium on the topic of whether the TPP would be trumped in 2016.

www.qut.edu.au


 
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Lion is the pride of the Australian box office

LION has posted the fifth biggest opening weekend for an Australian film of all time and the biggest ever opening weekend for an independent Australian film.

The box office for the weekend of  $4,155,636 (unaudited) puts Lion behind only the studio films The Great Gatsby, Australia, Happy feet and Mad Mad: Fury Road in the opening weekend record books.  Lion's total box, including previews, now stands at $4,967,656 (unaudited).

Lion is also taking the world by storm. The film has also opened at number 1 at the NZ box office, number 4 at the UK box office and in the US has already taken $14.5m before going into wide release, with strong releases also posted in Canada, Italy and other major territories.
 
“It is exhilarating to see audiences both here and internationally engaging with this incredible true story.  The fact that it is an Australian story and an Australian film makes it all the more satisfying.  It is a privilege to be releasing this film on behalf of Saroo, his family and the filmmakers,” said Richard Payten and Andrew Mackie from Transmission Films.
 
Lion was nominated for four Golden Globe awards, has received SAG, DGA, BAFTA and Critics Choice nominations and is the winner of more North American film festival awards than any other film this year.  Oscar nominations will be announced Tuesday US time.
 
Lion stars Nicole Kidman, Dev Patel, Rooney Mara, David Wenham and the captivating Sunny Pawar as the young Saroo.  Adapted from the incredible true story “A Long Way Home” by Saroo Brierley, LION is directed by Garth Davis (TOP OF THE LAKE) from a screenplay by Luke Davies (CANDY, LIFE).

The film was produced by See-Saw Films in association with Aquarius Films and Sunstar Entertainment. Emile Sherman, Iain Canning and Angie Fielder are producers with Andrew Fraser, Shahen Mekertichian and Daniel Levin executive producing.

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What is going on with Australia’s workplace relations system?

THE shock resignation of a senior and well-respected member of Australia’s national employment tribunal, the Fair Work Commission, raises serious questions about the operation, effectiveness and relevance of the Commission and the workplace relations laws it administers.

The Australian Financial Review today reports longstanding FWC Vice President Graeme Watson has resigned from his position and written a letter to Minister for Employment Michaelia Cash outlining grave concerns with the way workplace relations is regulated and administered in Australia.
 
“Vice President Watson is well respected by all users of Australia’s workplace system and, in almost 10 years’ service to the employment tribunal, has proven to be fair, objective and pragmatic in his application of Australia’s workplace relations laws,” AMMA chief executive Steve Knott said.
 
“While VP Watson’s resignation is a real loss to the Fair Work Commission, of even greater concern is the dysfunction in the tribunal and our workplace laws that has prompted the early resignation of one of its most senior and widely respected members.
 
“This is the second senior FWC member to have recently left the tribunal well before their statutory retirement date. Senior Deputy President Peter Richards, a Howard Government appointee like VP Watson, left in September 2016.”
 
Many of the concerns outlined by VP Watson to Minister Cash echo those detailed by AMMA in a letter to the Minister last October, which included:
 

  • Increasing evidence that the FWC is dysfunctional, not serving users well and appearing to pursue political agendas rather than assisting constructive workplace relations outcomes.
     
  • The growing need for an independent appeals tribunal to ensure greater rigour and consistency in the decisions of the FWC, including that its members respect established Full Bench principles.
     
  • The application of the Fair Work Act’s unfair dismissal and adverse action provisions seeing employees rewarded for making speculative claims against their employers, even where their actions clearly justify dismissal from their workplaces.
     
  • The failure of enterprise bargaining to support productivity and industrial harmony in Australian workplaces, and instead rewarding unions for threatening and taking strike action.
     
  • Increasing instances where the FWC is not approving agreements based on technicalities such as minor typos in forms or documents incorrectly stapled together.

“The issues raised in the Vice President’s resignation letter add further weight to previous calls from the business community for the government to conduct an urgent review of the Fair Work Commission, its structures, powers and decision making,” Mr Knott said.

“The serious problems identified by VP Watson also reaffirm the importance of the government acting on the Productivity Commission’s 2015 review of Australia’s workplace relations framework, and implementing the majority of its recommendations for reform during 2017.”

Click here to learn more about AMMA’s workplace relations reform priorities.

www.amma.org.au

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