Tim Ayres (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Industrial Relations, Senator Payne. How will cutting the wages of thousands of Australian workers help the economic recovery when wages growth is already at record lows?

Marise Payne (NSW, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I think Senator Birmingham and I, in the broad, have responded to this question today. The government has had in place a very strong system of support for Australian businesses, for Australian employers over the period of the COVID-19 pandemic. It is support that was absolutely essential during the worst periods of the pandemic. But, importantly, there needs to be a path beyond the worst periods of the pandemic in 2020 and through 2021, so the government, in planning and in reviewing its position, will work very carefully with employers, with industry and with employer organisations, as it has done, in fact, right through the pandemic period, as we make those decisions. Most importantly, though, we'll make them responsibly and thoughtfully and in a considered fashion—not as we might have seen from those opposite.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Ayres, a supplementary question?

Tim Ayres (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister confirm that schedule 3, part 5, clause 19 of the Morrison government's own industrial relations legislation allows for a wage cut?

Marise Payne (NSW, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I thank Senator Ayres for drawing my attention to schedule 3, part 5, clause 19 of the legislation. I don't have that particular part of the legislation with me. But what I can confirm is that those opposite are running a campaign against this bill. They are running a campaign against a bill which is about adapting our successful JobKeeper flexibilities and which is about reforms that will allow employers and employees in sectors to work together and enable employers to have more flexible arrangements. Those decisions are ones which the government has made in broad consultation—many of those consultations were held last year by the Minister for Industrial Relations—but those opposite are completely opposed to any engagement on those grounds. We reject that premise. The government's plan is clear, and the government's plan is founded in a strong confidence in Australia's future—

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Payne, I will give you an opportunity to conclude, but I have Senator Ayres on a point of order.

Tim Ayres (NSW, Australian Labor Party) Share this | Link to this | Hansard source

The point of order is relevance. The question was very straightforward. I understand the minister doesn't have her own industrial relations legislation in front of her, but the question was: 'Does the provision allow for a wage cut?'

Scott Ryan (President) Share this | Link to this | Hansard source

Not having it in front of me either, Senator Ayres, I think the minister, from my hearing of her answer, was talking about that issue and issues that I would consider directly relevant to it. I think the minister had five seconds left in which to continue. I've allowed you to restate the specific nature of your question—oh, the minister has nothing else to add. Senator Ayres, a supplementary question?

Tim Ayres (NSW, Australian Labor Party) Share this | Link to this | Hansard source

When the Morrison government removes the test that requires enterprise bargaining agreements to be better off overall, doesn't that mean that workers don't have to be better off overall?

Marise Payne (NSW, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

It's very clear to us, it's very clear to Australians who hear the mantra of those opposite, that there are a number of false claims being made about the proposed changes to the better off overall test, the BOOT, under the enterprise bargaining framework. For example, the claim that we are removing the BOOT—that's not correct. The industrial relations reform bill does not remove the better off overall test. It continues to apply to each individual employee, current and prospective, to ensure that they are left better off overall under an enterprise agreement, compared to the relevant modern award. Are we allowing each employer to now ignore the better off overall test? No, we are not. One of the proposed changes builds upon the existing public interest exception in the Fair Work Act, which was of course introduced by Labor.

These changes are a temporary measure that allow the Fair Work Commission to approve some agreements that don't pass the BOOT in limited circumstances, to support workplaces that have been negatively impacted by COVID-19—and where their employees and representatives agree to do so. (Time expired)