Business rallies to save AWAs

MARK LATHAM’S plans to scrap Australian Workplace Agreements (AWAs) has invoked a chorus of criticism from business leaders across Australia.

The Australian Mines and Metals Association (AMMA) has issued a plea to politicians across the board to improve the flexibilities now available at the federal level in workplace relations legislation.

An AMMA paper – The case for ongoing flexibility in employment arrangement options in the Australian resources sector – setting out the sector’s concerns was released by AMMA’s president, BHP Billiton president Graeme Hunt at the AMMA National Conference in Fremantle recently.

The AMMA paper details the high take up rate of AWAs in the resources sector, record low lost time injury frequency rates, record low level of lost days due to industrial action, positive economic performance levels, remuneration levels well above the national average and details of a highly skilled and highly trained workforce. The paper concludes with a plea that these results be supported by an industrial relations legislative system that includes workable collective and individual union and non-union workplace agreements.

AMMA’s CEO Steve Knott said: “Proposals to return to a monopolistic union and tribunal centred system of industrial relations would have disastrous economic consequences for Australia. Such a regression would particularly hurt the Australian resources sector, which is still recovering from years of low commodity prices and has now to contend with a disadvantageous exchange rate against the American dollar. To compete successfully in the global market, resources companies must be able to access flexible employment arrangement mechanisms that allow them to operate as productively and cost effectively as possible. This means having access to mechanisms that facilitate direct employee-employer relationships.”

Australia’s fastest growing form of employment agreement, AWAs are individual written agreements which override State and Federal awards. Using AWAs, many workplaces have negotiated tailored arrangements such as family friendly hours or schemes where employees who bring in new business share in financial benefits.

2003 saw a 63 per cent increase in the lodgement of AWAs across Australia, which was spearheaded by a 101.5 per cent increase in Western Australia.

Almost 500,000 AWAs have been approved since 1997 and AWAs now cover 12 per cent of employees on federal agreements.

Workers on AWAs receive 35 per cent more pay than those on certified agreements, according to the Australian Bureau of Statistics’ Employee Earnings and Hours Survey.

“Australian workplace agreements are in place in 50 per cent of all resources sector operations. In hard rock mining, this figure increases to 80 per cent,” Knott said.

Hugh Morgan, chairman of the Business Council of Australia said that his organisation had issues with the ALP’s plans to give more power to the Industrial Relations Commission and to scrap Australian workplace agreements.

“I think AWAs have made a significant contribution to the industrial scene. And it’s not just the 2 per cent of employees who have registered one.”