Are Employers Ready for More Change?

With the "Kevin 07" victory behind us, the workplace relations landscape is set to change again in '08. It is expected that workplace relations in Australia will undergo a third round of changes since 2006. The current Labor government is seeking to restore the balance in the employment relationship but do Australian businesses understand the effect these changes will have on the operation of their day-to-day business?

Australian businesses have just gotten used to workplace agreements (AWAs), now they are to be wiped from the landscape by the new Labor Government. Labor is going to abolish individual AWAs (although incrementally) and place collective bargaining at the forefront of the workplace model.

Employers should prepare to bargain collectively "in good faith" with unions (if supported by a majority of employees) for wages and conditions above minimum standards. The ALP will also reinstate unfair dismissal protection for all employees, with a remedy based on a "fair go all round".

It seems that many employers are unprepared for how these anticipated workplace relations changes will affect the operation of their businesses. Recent research undertaken by workplace relations specialists in my firm indicates that Australian businesses are ill-equipped to operate in a Labor IR system that relies on the written common law contract.

The efficient operation of Fair Work Australia (the primary body which will administer the majority of Labor's proposed changes) will be critical to the success of the changes proposed by the ALP.

Regardless of whether the transition to Labor's workplace relations system is an easy one or not, businesses should be prepared for big changes in 2008.