Employers will be able to use the COVID-19 pandemic as a reason for an enterprise agreement to be approved even if it doesn't pass the better-off-overall test for two years, under more industrial relations changes to be announced by the government on Wednesday.
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Industrial Relations Minister Christian Porter will release the full package of legislation on the second last day of Parliament for the year, including broader changes to the test, which requires the Fair Work Commission to ensure that agreements made between staff and employers do not leave workers worse off than if they were employed under the award.
The Fair Work Act currently allows for an agreement to be approved if it doesn't meet the better-off-overall test in exceptional circumstances, and the government is seeking to have the pandemic included as part of that measure for the next two years. Agreements made using the exemption could only be made for a two-year period, meaning its effects could still be felt for up to four years.
Under the proposed changes, the government wants to remove the requirement for the Fair Work Commission to take into account hypothetical working arrangements, which it says are contributing to delays in agreements being approved.
While committing the government to the test, known as the BOOT, as an important safeguard for workers, Mr Porter said the current system only frustrates and delays agreements.
"The government's reforms aim to restore Keating's vision by making the bargaining system easier to engage with, faster, more efficient and, most importantly, capable of delivering those twin goals of productivity growth and higher wages," Mr Porter said.
The government also wants to set a 21-day deadline for the Commission to approve workplace deals.
Some detail of the changes leaked late on Tuesday afternoon and have already been criticised by secretary of the Australian Council of Trade Unions Sally McManus, who said many workers would be left worse-off.
These changes are on top of those already announced, including measures around converting casual workers to permanent employees and criminalising wage theft.
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Sally Whyte
I report on a range of issues in federal politics and the public service, with a real passion for how decisions made in Canberra affect the lives of Australians.
I report on a range of issues in federal politics and the public service, with a real passion for how decisions made in Canberra affect the lives of Australians.
