Decisions of ACTU Executive Meeting

Decisions of ACTU Executive Meeting

Melbourne

May, 1990

MATTERS FOR INFORMATION

Note :This publication provides information relating to decisions of the May 1990 Executive meeting. This information is listed in the order dealt with by the Executive. It should be noted that in a number of decisions affiliates/and or State Branches are asked to take appropriate action : in such instances the affiliates and/or State Branches are being approached directly by the ACTU administration.

Matters for Information - 1 -May, 1990

UNION RESTRUCTURING

First Resolution

"At the 1987 A.C.T.U. Congress, the union movement overwhelmingly endorsed the proposal that unions need to amalgamate to form larger more efficient units.

As a first step it was suggested that the union movement establish about 20 union groupings to act as a catalyst for union amalgamation and co-operation.

A draft proposal was presented to Congress not as a blueprint but for discussion.

The attached draft outline, whilst not exhaustive as to the actual number of affiliates, is presented with the same objective in mind.

This document aims to give some general direction to the process and largely reflects the status of discussion currently taking place between affiliates rather than what might be any optimal or final position. It does

however demonstrate that these developments are widespread and generally in accordance with the

overriding objective of reducing the number of unions in enterprises and industry sectors.

Naturally other suggestions are likely to emerge as has been the case since the Future Strategies Document was first tabled in 1987.

In accord with the decision of the 1989 Congress, affiliates must urgently respond to the challenge of restructuring so that Australia has a stronger, more dynamic and democratic trade union movement.

The A.C.T.U. must play a leading and active role in this process and in this context affiliates are encouraged to positively involve themselves in the process of restructuring within the Congress policy guidelines.

Restructure is not necessarily designed to establish single union coverage in every industry or workplace. The process is clearly designed to build a stronger more effective trade union movement in Australia.

Union Restructuring (Contd.)

This process will involve:-

*amalgamations

*exchange and/or transfer of memberships

*the establishment of small negotiating committees within each enterprise or industry

*the total unionisation of an enterprise and an industry by appropriate union agreements."

Second Resolution

"The efforts of a growing number of unions to effect amalgamations as part of a process of strengthening and improving their efficiency and effectiveness has lead to a tendency towards conflict in cases when some unions seek to extend their influence through a process of rationalisation.

To overcome the potential for conflict through rationalisation of memberships, affiliates are required to conform to the principles outlines in the decision of ACTU Congress in September 1989."

The Executive will continue to monitor the activities of affiliates in this regard, and if necessary will intervene if there are continuing breaches of the Executive decision."

NATIONAL FREIGHT INITIATIVE - CONSULTANT'S REPORT

"The ACTU Executive supports the further investigation of the viability of a single national rail freight organisation and the social and economic benefits of State and Federal Governments combining to establish such an initiative.

Further investigations should include a more detailed assessment of the costs assumed by the consultants, the capital investment required and the potential sources of such investment.

The Executive will consult with transport unions before adopting an attitude towards any particular options for the operation and management of both freight operations and terminals which may arise from the National Freight Initiative Committee's investigations."

RAIL INDUSTRY COUNCIL - PUBLIC COMMENT DOCUMENT

"The ACTU Executive welcomes the release of the Rail Industry Council's Report - "Rail into the 21st Century" as an important contribution to the development of a rational and sustainable transport structure in Australia. Unions should encourage discussion of the Options raised by the Report and contribute their views to the Rail Industry Council during the public comment phase.

The Executive notes that the Rail Industry Council is due to make a final report and recommendations to the ACTU and ATAC later this year."

NSW INDUSTRIAL LEGISLATION

"The ACTU Executive notes that the NSW Government has today introduced new industrial relations legislation which it expects to railroad through the Parliament.

The NSW Bill contains a concoction of traditional Tory prejudices and hardline New Right dogma.

The Bill would destroy sensible industrial relations reform which is now taking place through the Award restructuring process.

The union movement does not believe that nothing needs to be changed in the industrial relations processes and structures. Clearly the NSW Government and legislative structures need to catch up with recent Federal reforms, including those represented in the Australian Industrial Relations Act (1988).

But the NSW Bill is not aimed at sensible reforms. For example the Bill:-

1.Encourages the proliferation of phoney "unions", under the guise of enterprise associations.

2.Robs the industrial relations system of the protection of award standards through the substitution of miserable "minimum standards".

3.Discourages speedy resolution of disputes through arbitration. The Bill requires the Commission to

NSW Industrial Legislation (Contd.)

issue a "certificate" that the conciliation process is exhausted before a matter could be arbitration by the Tribunal. This provision will encourage complicated legal devices to avoid or delay arbitration. In so doing the balance of power in the industrial system manifestly shifts in favour of unscrupulous employers.

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4.Introduces the American notion of 'interest' and 'rights' matters, which will open up the NSW industrial relations system to an endless charade of legal complications.

Matters for Information - 1 -May, 1990

5.Sets up a new array of penalties and punishments in industrial law.

Instead of the rational task of moving to integrate the NSW system with the Federal system, encouraging the rationalisation of union coverage, facilitating amalgamation of unions, ensuring co-operative industry and enterprise agreements in order to get the NSW economy humming, the NSW Government has decided to set up a New Right industrial relations laboratory.

The ACTU will liaise with the Labor Council of NSW in a joint campaign concerning this proposed legislation.

The ACTU calls on the ALP, the Australian Democrats and the other parties to throw out this piece of political spite and cynicism."

TRADE DEVELOPMENT ZONE

"The ACTU welcomes special programs to develop manufacturing export capability but expresses its extreme concern that the basic premise of the N.T. Trade Development Zone is flawed and therefore that the Zone will only develop if it is allowed to use cheap imported labour with no fundamental rights. This is unacceptable in Australia.

The refusal of the HengYang Cos. to immediately make good all underpayments to its imported workforce together with the intimidation of Asian workers and violation of human rights substantiates our view that

Trade Development Zone (Contd.)

the arrangements have been premised on cheap labour so far as the Companies are concerned.

We therefore call on the N.T. Government to publicly repudiate the use of cheap labour and human rights violations as a basis for the TDZ.

Australian immigration regulations already provide substantial scope for permanent immigration, including

those with special skills, and for temporary immigration under controlled arrangements for the transfer of specialist skills. The ACTU is opposed to any further immigration into the TDZ under relaxed arrangements as it is clear that this is only needed for the import of cheap labour and has nothing to do with special skills.

The N.T. Government has a responsibility to ensure that any further development of the TDZ is soundly based so that it does not end up resulting in the dislocation of Australian workers, the exploitation of Asian workers and the waste of taxpayers' money.

The ACTU congratulates the Clothing Trades Union for its substantial efforts to ensure a measure of justice is achieved for the workers concerned."

MARITIME UNIONS - UNION ORGANISATION

"That the ACTU endorses the formation of a Maritime and Stevedoring Union Federation with two union groupings. This Federation to be established by a process of amalgamation and rationalisation of union coverage in accordance with ACTU policy including discussion with relevant unions."

TROUBLESHOOTERS

"Executive condemns the action of the BLF in entering into agreement with Troubleshooters as a further example of the lack of any genuine union principle on the part of the BLF.

All other building unions had previously rejected any such arrangement because of its implications of seriously weakening the legal status and protection of employees by Awards and Labour Statutes.

The BLF has now entered into an arrangement which avoids the Award and PAYE tax with a Company which has been identified with the New Right and the NFF. In the

Troubleshooters (Contd.)

process it is seeking to erode sick leave, holidays and other conditions of workers in a desperate bid to gain membership fees.

In its desperation the BLF has even been prepared to give away its right to criticise the employer.

The action of the BLF and Troubleshooters highlights the urgent need for the law to distinguish genuine self-employed contractors and employees so that not only award rights but other basic legal rights such as Workers Compensation Insurance are made clear and protected.

The BLF adds nothing positive to the union movement or the industrial relations scene. Its re-registration would clearly be redundant as well as in contradiction to moves for union rationalisation as all of the relevant workers are already covered by other unions. Re-registration would also be extremely disruptive and accordingly will be opposed by the union movement.

The BLF/Troubleshooters Agreement will collapse because it is built upon mutual desperation rather than solid principle. In the meantime the ACTU/State Labor Councils, and unions will resist the spread of such contracts.

Executive declares full support for the State Branches which are taking steps to have the agreement repudiated."

SUPERANNUATION

"ACTU Executive endorses the calling of meetings of unions and State Labour Councils on an industry by industry basis with a view to implementing the following programme of action.

Claims to be served on an award and industry basis seeking immediate agreement to an additional 3% employer contribution consistent with the ACTU/Government agreement (i.e. operative from May 1991).

Where appropriate negotiations may include aspects of the proposed future wage fixing arrangements for the industry but priority should be given to reaching a clear-cut agreement on superannuation.

Superannuation (Contd.)

In the event that negotiations are unsatisfactory the ACTU and unions should determine an appropriate campaign of action designed to achieve agreement on an industry or where necessary enterprise basis.

The ACTU believes that it would be preferable to reach agreement with employer groups on a timetable and on priority for those workers with the poorest superannuation including part-time and casual workers who frequently miss out on death and disability cover as well as other benefits. However, if this is not possible then unions should proceed to make gains wherever possible.

Unions should again give strong preference for the further development of jointly controlled multi-employer funds rather than Corporate Schemes or standard Life Company products. Where the first 3% went into a Corporate Fund this could be acceptable for the second 3% provided that -

-the Fund is properly managed.

-the Company is a substantial one not likely to disappear.

-union representation on the Trustee Board is at least 50%.

-the Fund meets all statutory and prudential requirements.

-the Fund is moving toward full vesting and portability.

Unions should also develop a campaign of action on an award by award basis to ensure award compliance by employers, particularly in the non-union small business sector. Where possible this should be combined with increased efforts at recruitment.

The ACTU also calls on State and Federal Governments to develop special programmes of education, inspections and enforcement of award entitlements.

We also call on the Insurance and Superannuation Commission to play a more meaningful role in ensuring that Company funds comply with all requirements and operate in the interests of fund members."

CONSUMPTION TAX

"The ACTU Executive welcomes last week's public statement by the Treasurer concerning the consumption tax. The Government has clearly demonstrated the regressive consequences of a broad based consumption tax and dispelled many of the myths concerning such a tax. The ACTU opposition to such a tax has been due to the harmful economic and social impacts.

ACTU policy is to support a fairer tax system and commends the Government on its tax reform initiatives which have included in:

*broadening of the tax base

*introduction of fringe benefit taxes;

*extensive changes to wholesale taxes and sales taxes;

*eliminating many avenues of tax avoidance;

*moderating the tax burden on low and middle income earners;

*new measures in the family support area.

The ACTU supports the Government's statement that it will review the tax issues relating to export industries. More also needs to be done to eliminate every avenue of tax avoidance."

INTERNATIONAL CATAMARANS - HOBART

"ACTU Executive notes the actions of the AMWU and BWIU in seeking to unionise and establish Award coverage at International Catamarans in Tasmania.

The Executive acknowledges the difficulties experienced by the unions in their endeavour to bring under Award coverage workers who have traditionally been employed on individual contracts.

The experience of this company demonstrates once again the way in which sub-contracting is used to distort traditional employee-employer relationships.

We call upon the Government to re-examine the taxation guidelines and the Industrial Relations Act regarding sub-contracting with a view to tightening up the definition to prevent similar circumstances occurring elsewhere."

AMALGAMATION - MOA/ATOF/TSG

"That the ACTU express its strong support for the proposed amalgamation of MOA, ATOF and the TSG.

Appropriate assistance from ACTU Officers and staff be offered to progress the amalgamation."

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Matters for Information - 1 -May, 1990

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CONTENTS

SubjectPage

Amalgamation - MOA/ATOF/TSG 10

Consumption Tax 9

International Catamarans - Hobart 9

Maritime Unions - Union Organisation 6

National Freight Initiative - Consultant's

Report 3

NSW Industrial Legislation 4-5

Rail Industry Council - Public Comment

Document 4

Superannuation 7-8

Trade Development Zone 5-6

Troubleshooters 6-7

Union Restructuring 2-3