Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill will amend the Coal Mining Industry (Long Service Leave Funding) Act 1992 (the funding act) to ensure the continued operation of existing unique long service leave arrangements in the black coal mining industry. The amendments will clarify that the existing long service leave entitlements preserved by the Fair Work Act 2009 will be covered by the funding act. The bill will also introduce definitions of ‘black coal mining industry’, ‘employee’ and ‘employer’ and amend the definition of ‘eligible employee’ in the funding act to ensure that the scheme applies universally in the black coal mining industry.

Long service leave entitlements in the black coal mining industry currently flow from industrial instruments (awards and workplace agreements) and from contracts of employment. They are based on an employee’s service in the industry, rather than service with a particular employer.

Employees in the black coal mining industry have accessed portable long service leave entitlements under the terms of federal awards since 1949 which in turn were funded by an excise on coal production. Since 1993, under the funding act and related legislation, the funding of entitlements has been through an employer levy scheme. The funding act also established the Coal Mining Industry (Long Service Leave Funding) Corporation, which administers the scheme. The funding act provides for the reimbursement of employers where they have made a payment to an eligible employee in respect of the employee’s entitlement to long service leave.

From 1 January 2010, the present industry awards prescribing long service leave will be superseded by modern awards under the Fair Work Act 2009, which are not permitted to include long service leave entitlements. While long service leave entitlements will be preserved through the operation of the National Employment Standards under section 113 of the Fair Work Act after 1 January 2010 they will no longer be award based. As a consequence, from 1 January 2010, employers in the black coal mining industry will not be entitled to reimbursement under the funding act in respect of long service payments they make to employees in respect of the preserved entitlements.

These amendments will address this by ensuring the funding act applies to the preserved entitlements in the Fair Work Act 2009. The amendments also ensure all eligible employees will be entitled to the longstanding existing standard of long service leave for the black coal mining industry as of 1 January 2010.

The bill will include definitions of the ‘black coal mining industry’, ‘employee’ and ‘employer’ and amend the existing definition of ‘eligible employee’, to align with the modern award. These definitions will also apply to related legislation—that is, the Coal Mining Industry (Long Service Leave) Payroll Levy Act 1992 and the Coal Mining Industry (Long Service Leave) Payroll Levy Collection Act 1992.

Industry stakeholders have suggested to the government that these definitions will provide greater certainty as to the scope and application of the existing scheme. The government considers that these proposals by industry participants are sensible and is happy to facilitate them by making these minor amendments.

The effect of this bill is to preserve existing arrangements for employees in the black coal mining industry with respect to long service leave and also ensure the reimbursement of employers from the fund in respect to long service leave payments they make to eligible employees.

The government considers that this is a desirable measure that recognises the unique historical circumstances surrounding long service leave in the black coal mining industry.

I commend the bill to the House.

Debate (on motion by Mr Haase) adjourned.