STATEMENT

Fair Work Act 2009
s.156 - 4 yearly review of modern awards

4 yearly review of modern awards—Award flexibility
(AM2014/300)

4 yearly review of modern awards – award flexibility – multiple modern award coverage.

[1] Section 156 of the Fair Work Act 2009 (the Act) requires the Fair Work Commission (the Commission) to review all modern awards every four years.

[2] In a Statement issued on 17 March 2014, 1 the Commission stated that the first 4 yearly review of modern awards (the Review) would comprise of an Initial stage, dealing with jurisdictional issues, a Common issues stage and an Award stage.

[3] As part of the Award Flexibility Common Issue to the Review, the Commission issued a Statement on 9 October 2015 indicating it intends to engage an external research provider to conduct research into multiple modern award coverage and the utility of majority clauses. 2 The Commission invited interested parties to provide comment on the scope of the proposed research by 23 October 2015.

Revised scope

[4] The Commission received comments from the Australian Industry Group (Ai Group), 3 the Australian Council of Trade Unions (ACTU),4 and the Australian Manufacturing Workers' Union (AMWU).5 All proposed that the scope of the research be expanded to explore particular matters of interest.

[5] The Commission has taken into consideration comments received on the scope of the research and proposes to amend the scope of the research. These changes seek to add to the overarching purpose of the research, which is to gather information on the nature and impact of multiple modern award coverage for businesses and employees.

[6] To that extent, it should again be noted that the Commission has not formed a view on whether majority clauses should be included in any particular modern award.

[7] The revised scope is attached.

Next steps

[8] Interested parties are invited to provide comment on the revised scope of the research by no later than 4pm on 16 November 2015 to amod@fwc.gov.au.

[9] Comments will be considered for incorporation into the final research design. A further Statement will be issued to confirm the final research scope. This Statement will also outline a revised timeline for the delivery of the research.

PRESIDENT

[1] The Commission will engage an external research provider to undertake qualitative research to inform itself about the nature and impact of multiple modern award coverage on businesses and employees who are subject to coverage by multiple modern awards.

[2] The research involves seeking the perceptions of employers and employees in small to large enterprises to explore:

• perceived nature and impact (positive or negative) of multiple modern award coverage on businesses and employees;



• understanding of which awards apply to workplaces covered by multiple modern awards and how that understanding may be improved;



• strategies currently used to ameliorate the effect of multiple modern award coverage including (but not limited to):



• whether or not the employers or employees have sought advice about whether the strategies adopted at their workplace comply with workplace laws;



• whether or not the employers or employees were aware of the potential sources of advice as to these matters; and



• what (if any) other strategies were considered by employers or employees and why they were rejected;



• user testing of majority clauses through hypothetical scenarios;



• anticipated effects of applying majority clauses to specific workplaces; and



• perceptions of the utility of majority clauses to overcome issues (if any) associated with multiple modern award coverage.

[3] Information from employee and employer representatives will also be gathered to further inform the collection of information from employers and employees. The research will also seek to include a range of industries where multiple modern award coverage applies including, where possible, maintenance, professional, clerical and commercial sales sectors, and labour hire and group training providers.

 1   [2014] FWC 1790.

 2   [2015] FWC 6958.

 3   Ai Group submission – multiple modern award coverage – research (23 October 2015).

 4   ACTU submission – multiple modern award coverage – research (23 October 2015).

 5   AMWU submission – multiple modern award coverage – research (23 October 2015).

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