ࡱ> @ ANbjbjFF ,,EBZ\\\l|||4x-x-x-h-lL.d"V.Z0.D0D0D0154E6UUUUUUU$XR$[U|:>11:>:>U||D0D0U???:>d|D0|D0U?:>U??Q||RD0. w3ix->LeR5UlU0"VyR\\>\(R||||\|R`6}8&?9:666UUT$?T  __________________ ACCI Submission to the HREOC inquiry into work and family __________________ October 2005 Commerce House, 24 Brisbane Ave, Barton ACT 2600 ( PO Box E14, Kingston ACT 2604 Australia Telephone: 61-2-6273 2311 ( Facsimile: 61-2-6273 3286 ( Email:  HYPERLINK "mailto:acci@acci.asn.au" acci@acci.asn.au ACCI House, 4/55 Exhibition St, Melbourne VIC 3000 ( PO Box 18008, Collins St East, Melbourne VIC 8003 Australia Telephone: 61-3-9668 9973 ( Facsimile: 61-3-9668 9958 ( Email:  HYPERLINK "mailto:melb@acci.asn.au" melb@acci.asn.au ACCI The Australian Chamber of Commerce and Industry (ACCI) is Australias peak council of business associations. ACCI is Australias largest and most representative business organisation. Through our membership, ACCI represents over 350,000 businesses nationwide, including: Australias top 100 companies. Over 55,000 medium sized enterprises employing 20 to 100 people. Over 280,000 smaller enterprises employing less than 20 people. Businesses within the ACCI member network employ over 4 million working Australians. ACCI members are employer organisations in all States and Territories and all major sectors of Australian industry. Membership of ACCI comprises State and Territory Chambers of Commerce and national employer and industry associations. Each ACCI member is a representative body for small employers and sole traders, as well as medium and larger businesses. Each ACCI member organisation, through its network of businesses, identifies the policy, operational and regulatory concerns and priorities of its members and plans united action. Through this process, business policies are developed and strategies for change are implemented. ACCI members actively participate in developing national policy on a collective and individual basis. As individual business organisations in their own right, ACCI members also independently develop business policy within their own sector or jurisdiction. ACCI and the Work and Family Debate ACCI, as peak employer body, has a longstanding interesting in work and family policy and has contributed to the development of work and family policies in a variety of fora. This includes submission to previous HREOC inquiries, and inquiries by other bodies (e.g. parliamentary committees), as well as advocacy and involvement in every major test case that has occurred in the Australian Industrial Relations Commission, both recently and through preceding decades. ACCI also promotes innovations that seek to improve work and family balance in individual enterprises through our sponsorship and involvement with the annual Work and Family Awards. ACCI has also been involved in every test case at a national level which has considered measures to alter the award safety to assist employees in balancing paid work with family responsibilities. TABLE OF CONTENTS  TOC \o "1-1" \h \z \u  HYPERLINK \l "_Toc117494712" ACCI  PAGEREF _Toc117494712 \h i  HYPERLINK \l "_Toc117494713" Summary of ACCI Submission  PAGEREF _Toc117494713 \h i  HYPERLINK \l "_Toc117494714" Introduction  PAGEREF _Toc117494714 \h 4  HYPERLINK \l "_Toc117494715" Changes to our workplace relations system  PAGEREF _Toc117494715 \h 4  HYPERLINK \l "_Toc117494716" The contribution of employers  PAGEREF _Toc117494716 \h 5  HYPERLINK \l "_Toc117494717" The role of the award safety net  PAGEREF _Toc117494717 \h 5  HYPERLINK \l "_Toc117494718" ACCI Activity on Work and Family  PAGEREF _Toc117494718 \h 7  HYPERLINK \l "_Toc117494719" Future Directions in Work and Family Policy  PAGEREF _Toc117494719 \h 8  Introduction The challenge of balancing work and family has been the subject of much attention in recent years from policy makers, governments, social commentators and the media. This has included reviews of work and family policies by various government agencies. In the workplace relations sphere, a major test case in the Australian Industrial Relations Commission, the Family Provisions Case, examined applications by the ACTU and employers designed to assist in the better balancing of work with family responsibilities. That decision is now being implemented and flowing into federal awards. While the public debate is contemporary, the issue is of course much older. Families have always had to look at ways to structure their work and non-work lives to achieve their financial goals and gain incomes, while simultaneously balancing this need to meet family responsibilities and access appropriate leisure time. As society has changed, as have views of the role of women and the way in which families structure their work and non-work lives to meet this challenge. Perhaps the most significant change has been the substantial increase in the rate of female labour market participation, including maternal labour market participation. The changing work and family dynamic, and its implication for policy, has been the subject of almost constant review and examination in various contexts in recent years. ACCI has contributed to many of these inquiries and the public debate regarding ways to improve the capacity of people to balance work and their family responsibilities. The mere fact of public debate does not however suggest that there is a substantial work and family crisis in Australia, or any need for substantial policy change. It is ACCIs view that, by and large, our workplace relations system is delivering acceptable outcomes for employees and business in this regard, and that future policy work should focus on further supporting the capacity of individual employers and employees to consider ways to meet their needs and preferences through genuine bargaining at the workplace level. Changes to our workplace relations system Our workplace relations system has also undergone substantial change. Australias previous system of centralised arbitration and conciliation and arbitration has now been substantially replaced by a system based around workplace bargaining and agreement-making. This historic shift has generated significant social and economic benefits for Australia. In the work and family sphere, agreement-making has allowed employers and employees to consider their own circumstances and innovative measures to better assist in reconciling work with family responsibilities. A range of workplace conditions and arrangements have been developed which have transcended the very limited range of work and family entitlements which could be implemented under a centralised, award approach to workplace relations. The Federal Government has recently provided detail of foreshadowed additional changes to Australias system of workplace relations. The changes will be discussed in further detail in this submission. In summary, they will produce an even greater emphasis on agreement-making and produce a more responsive and flexible labour market. Attachment B of the Federal Governments Workchoices policy document of 9 October 2005 provides extensive information on the mechanisms in the new workplace relations policy framework to protect work/family balance. The greater emphasis on workplace-level bargaining in the anticipated reformed workplace relations system will produce genuine, lasting benefits for Australian families. The contribution of employers The principal contribution that employers make to the capacity of Australians to start and raise families is providing paid employment. Unemployment remains the single biggest contributor to poverty in Australia. Households where no adult works experience the most financial stress of any household type. In recent times, Australia has seen a substantial improvement in the unemployment rate and in job creation. This achievement has yielded significant benefits for Australian families. The task now is to build on and further strengthen job creation. Agreement-Making is the key to work/family balance Agreement-making has, however, unlocked the capacity for both employers and employees to negotiate and implement a far more diverse range of conditions, entitlements and arrangements than were possible under awards. This range from the simple (allowing someone to move their lunch hour to collect children from school) to the more complex and costly (the provision of child care, job share etc). The capacity to deliver particular outcomes is always going to be a function of business circumstances, capacities and employer preferences. Centralised approaches to the creation of measures to balance work and family invariably either cannot adequately accommodate the diverse needs and circumstances of Australian families, or the diverse capacities and operating conditions of Australian business. The imposition of one size fits all style obligations has the potential to cause more damage than good, as was recently recognised in the AIRCs Family Provisions Case decision. Decentralised, workplace bargaining has delivered benefits and future policy should emphasise agreement making as the appropriate course for the creation of additional work and family balance arrangements and provisions. The role of the award safety net While workplace bargaining is the only viable route to the creation of a broader range of work and family balance provisions, the award safety net has been altered to include a wide range of provisions that help further sustain the capacity of employers and employees to balance work and family responsibilities. Safety nets are by their nature limited and centrally imposed solutions always carry significant risks for this reason, policy initiatives that reduce reliance on the award safety net and increase capacities for mutually agreed solutions should be emphasised. Work and family balance provisions now contained in federal awards include: Parental leave. Flexibilities in relation to hours and overtime (e.g. make-up time, time off in lieu of overtime etc). Carers leave. Bereavement leave. Capacities to take annual leave in single days. Facilitative provisions generally. Part time and casual employment. Not all awards make provision for ongoing casual employment, or for part-time work. This has been a disappointing limitation that has endured in our award system. Awards which do not provide such capacities close off employment opportunities for both men and women who may wish to combine paid employment with caring responsibilities and who, as a consequence, do not have a preference for full-time employment. The Federal Government has announced in its recently released Workchoices policy reform document that it will legislate to ensure that all awards contain part-time employment provisions. This is a welcome initiative. There has been an expansion of work/family balance capacities in federal awards as a result of the recent Family Provisions Case decision in the Australian Industrial Relations Commission. That decision arbitrated claims by employers and the ACTU to vary the award safety net in a variety of areas to assist employees in balancing their work with family responsibilities. The decision will introduce the following amendments to awards: A right to request an additional 12 months parental leave (up to a maximum of 104 weeks). A right to request up to 8 weeks simultaneous leave (i.e. the capacity for both parents to be on leave). A right to request a return to work on a part-time basis. Employers can refuse any request on reasonable grounds relating to the effect on the workplace or employers business. Greater flexibilities in annual leave, including the right to take up to 10 days per year of annual leave as single-day leave, and the right to accrue leave for up to 2 years before leave is required to be taken. In addition to these matters, the employer parties (including ACCI) and the ACTU agreed to various changes to carers leave entitlements. These conciliated outcomes will produce the following changes to awards: A doubling of the current yearly cap on carers leave from five days per year to ten days per year. An extension of the purposes to specify that carers leave is available for unexpected caring emergencies. A specific right for casual employees to be absent from work for caring purposes. The decision was handed down on 8 August 2005 and orders are yet to be made to incorporate the decision into federal awards. When this has occurred, there will be substantial new capacities to balance work with family responsibilities in federal awards. Various employer applications to introduce additional flexibilities into awards in areas such as leave and hours were not accepted by the AIRC and were opposed by the ACTU. This is disappointing, as the introduction of these additional flexibilities would have resulted in substantial further capacity for employees to balance work with family responsibilities. ACCI Activity on Work and Family In recent years the Australian Chamber of Commerce and Industry has been actively involved with industry and industry organisations in work and family issues, at a promotional, policy, conciliation and arbitral level. Our activity in this area is in recognition of the importance the issue has in the contemporary workplace environment both in dealings between employers and employees, and in pursuing national goals of increasing workforce participation. ACCI activity has included: Partnership (since 1994) in the ACCI/BCA National Work and Family Awards. These awards are the pre-eminent national awards in Australia recognising excellence in work and family initiatives and outcomes in workplaces in all regions and of all sizes. Development and adoption (in 2002/03) of the first formal joint statement of policy on Work and Family by each of the employer and business organisations comprising the ACCI member network. The development of employer claims (in 2003 the ACCI Work+Family Solutions Package), and then lead representation of employers in the 2003/04 Family Provisions Case before the Australian Industrial Relations Commission. ACCIs role in this conciliation and arbitration proceeding included reaching a conciliated outcome on certain matters (including agreement to extend the period of personal leave that can be used for family caring purposes). ACCIs participation in these proceeding followed earlier lead industry representation in the Family Provisions Case of the early 1990s, and the conciliated national agreement a few years later to extend parental leave entitlements to certain categories of casual employees. Publications and speeches on the work and family issues being faced by Australian employers. Representation of Australian employers in international debates on employment issues, including work and family, in the forums of the International Labour Organisation. Liaison and working relationships with other bodies and organisations involved in these issues. ACCI will continue to promote and build capacities for improved work/family balance in Australian businesses, and to work with employers to identify issues at both a policy and operational level that hinder business from considering and implementing measures that assist employees in achieving better work and family balance. Future Directions in Work and Family Policy ACCIs Work and Family policy is attached and sets out the basic approach to policy in this area advocated by ACCI. Any future consideration of work and family should be driven by some core considerations: It should be multifaceted and strategic: work and family policy issues involve consideration of a number of different policy questions, which intersect to determine the ability of families to balance paid work with their family responsibilities and lifestyle preferences. Policy should avoid an assumption that more regulation is always the answer. Dialogue and consensual solutions will always be a superior solution to the imposition of more externally-developed regulation by governments or other regulators. Australian employers already operate in a heavily regulated environment by comparison with our competitors. Consistent with the above, all areas of policy should avoid an assumption that further regulation of employers is the answer to all work and family issues. Workplace regulation is in fact only a small part of the total range of considerations necessary to implement to solutions to work and family considerations. Policy development should include consideration of : Government transfers and income support policies. Taxation arrangements, and the level of taxation. The provision of childcare. The provision of various family support services (e.g. maternal health centres). Access to schools and hospitals. Lifestyle preferences. Housing policy, including the affordability of housing, and public infrastructure. Employment and training policy. As one example, the fact that some employees (predominantly male) now work extended hours (e.g. over 45 hours per week) has led to calls in some quarters for greater regulation and restrictions on the capacity of employees to work longer hours. Such a simplistic approach completely fails to consider: The consequences of a reduction of income on that household. The lifestyle and personal circumstances that may lead an employee to seek to maximise hours of work and thereby, income, such as: The cost of housing (e.g. if an employee has recently purchased a house). Lifestyle aspirations (e.g. saving for holiday houses, holidays, schooling etc). Consideration of these issues therefore needs to be wide-ranging and holistic. Anything less will lead to inadequate and partial policy proposals.  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