Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

I want to make some comments in relation to the amendments moved by the Democrats. The first is in relation to the pay equity monitoring powers. I suppose I should start with a general proposition, and Senator Murray did in fact allude to this. We do take the view that this is a transition bill. The focus for the government is on delivering the transitional bill as per our implementation policy. We are not minded to change the powers of the Australian Fair Pay Commission, because our policy, as you know, is to establish a new entity, which is Fair Work Australia. A number of the comments that have been made by senators in this place are obviously matters the government will consider. We will also engage in substantive consultation with stakeholders about the powers and the scope of Fair Work Australia prior to the introduction and passage of the substantive bill. So that really is the context in which we consider your amendments, Senator Murray.

In relation to amendment (1), we have a view of a limited role for the AFPC during the two-year transition period in relation to a minimum wage-setting function only. One of the reasons for this is that we do not want that function to overlap with the award modernisation function. As I have previously discussed, the award modernisation request includes the requirement for the commission to promote pay equity principles, and that process will be open and include consultation with stakeholders so these issues can be raised with the AIRC and can be taken into account in the modern award-making function.

In relation to amendment (3), which revises quite substantively the AFPC’s wage setting-parameters, I again reiterate the position that I put at the outset: our view is that we are moving to a different system, one which involves a different body, and we perceive a limited role for the AFPC during this two-year transition period. We have made clear in our policy that Fair Work Australia will conduct annual wage reviews which will take effect on 1 July each year and that the FWA will publish updated pay rates before this date to provide certainty for employers and employees. Minimum wage-setting criteria for Fair Work Australia would be determined as part of the government’s substantive workplace relations reforms.

Finally, amendment (7) amends the list of the Workplace Authority’s functions to include a range of matters in relation to pay equity. The government’s position is that it is protecting the safety net for both women and men through our new no disadvantage test for workplace agreements. In addition, as I discussed earlier, in setting modern awards the commission is required to have regard to promoting pay equity in modern awards. From 2010, Fair Work Australia will replace the Workplace Authority and the AIRC. The functions, powers and matters to take into account for the operation of Fair Work Australia will be determined as part of our substantive workplace relations reform package.