September16,2015

JointSubmissioninresponsetotheDraftReportoftheProductivityCommissionInquiryintotheWorkplaceRelationsFramework

Email:rkplaceRelationsInquiry ProductivityCommission

GPOBox1428

CanberraCityACT2600

TheWorkandFamilyPolicyRoundtable(W+FPR)andWomenandWorkResearchGroupmadeajointsubmissiontothecurrentInquiryintotheWorkplaceRelationsFramework. InlightofthatsubmissionandinresponsetotheProductivityCommission’sDraftInquiryReportwewishtomakeafurtherbriefsubmission.

NotwithstandingthenarrowTermsofReferenceoftheInquiry,inourviewtheCommissionhasnotadequatelydischargeditsresponsibilitytoconsidertheInquiry’ssecondtermofreferenceinitsDraftReport:theimpactoftheworkplacerelationsframeworkonfairandequitablepayandconditionsforemployees,includingthemaintenanceofarelevantsafetynet.Inparticularweareconcernedthat theDraft Report failedto give adequateconsiderationto severalkeyissuesweandothersraisedinsubmissionsinresponsetotheCommission’sIssuesPapers,includingfairandequitablepayandconditionsforworker-­‐carers.1

While the Commissionhas acknowledged the increased participation ofwomeninthelabourforce,andthat‘womenwhoworkarenowthenorm’(p.91),itsDraftReportargumentsandrecommendationsarebasedonanidealofanapparentlygender-­‐neutralcare-­‐freeworker.Asaconsequence,theCommission’sanalysisfailstorecognisethecontinuingdifficultiesfacedbyworker-­‐carersinaworkplacerelationsframeworkbuiltaroundan‘ideal’unencumberedworker.Further,severalof the Commission’srecommendations,includingthoseonpenaltyratesandonreconfiguringtheBOOTtestwillpotentiallyhavesignificantlynegativeimplicationsforwomenandworker-­‐carersifadopted.

WeremainprofoundlyunconvincedbytheargumentmountedinintheDraftReportthatanychangethatmightsupportworker-­‐carers(mostofwhomarewomen) would encourage employment discrimination against this group

1Aworker-­‐carerisaworkerwhocombinespaidworkwithanunpaidcarerole.

(p.171).TheDraftReportnotesthat‘discriminationagainstanypartybasedonfactorsunrelatedtotheirworkperformanceisbothinefficientandcontrarytowell-­‐establishedsocialnorms’(p.254).SuchdiscriminationisalsoexplicitlyprohibitednotonlyundertheFairWorkAct2009(FWA)butalsoinallstate,territoryandfederalanti-­‐discriminationjurisdictions.AmoreappropriateresponsebytheCommissionwouldbetorecommendmoreeffectivewaysofensuringdiscriminationagainstworker-­‐carersdidnottakeplace.Thisshouldincludestrengtheningtheanti-­‐discriminationprovisionsintheFWA,improvingthecapacityofemployerstomeettheirlegalobligations,andenhancingtheresourcesoftheFairWorkOmbudsmantoeffectivelyandproactivelyenforcetheseandotheremployerobligations(asisrecommendedinrelationtoemployerssuspectedofunderpayingmigrantandundocumentedworkers-­‐p.749).ThisisparticularlycrucialinthelightofsubmissionsfrombodiessuchastheAustralianHumanRightsCommission,whichhashighlightedthesignificantextentofdiscriminationagainstwomenworkerswhilstpregnantandontheirreturntoworkafterparentalleave(Submission110).

Ourkey,butnotonly,concernsabouttheanalysisandrecommendationsintheDraftReportarediscussedbelow.WealsoattachouroriginalsubmissionandaskthattheCommission’sFinalReportaddresstheissuesweraisedinthatsubmission.WealsoendorsethesubmissionmadebytheNationalFoundationforAustralianWomen.Ananalysisofthegenderedimpactofthecurrentworkplacerelations(WR)frameworkismissingfromtheDraftReport(evidencedforexamplebyreferringtotheNESas‘genderneutral’onp.126-­‐seefurtherbelow).Thisisaverysignificantconcerngiventheimportanceofwomen’sworkforceparticipationtotheeconomicprosperityofAustralia.Italsofailstoseriouslyaddresstheincreasingneedforwomenandmentocombineworkwithcareforchildren,peoplewithdisabilityandfrailolderpeople,agoalthatunderpinsmuchoftheFederalgovernment’ssocialpolicy.

Yourssincerely,

ProfessorBarbaraPocock DrElizabethHillProfessorSaraCharlesworth

Co-­‐convenors W+FPR

Contacts:

ProfessorMarianBaird,DirectorWWRG

W+FPR:+WRG:ProfessorMarianBaird:

1.NationalEmploymentStandards

WeandothershadrecommendedthattheNationalEmployment Standards(NES)bemademoreinclusiveand,inparticular,offermoresupporttoworker-­‐carers.AsabasisfornotextendingtheNES,theCommissionarguesboththat‘socialchangesthatinvolveagreaterrolebymenincaringforchildrenalsoseem highly probable’ and that theNESare ‘gender-­‐neutral andso arealreadywellgearedtoanysuchsocialtrends’(p126).

WhilethetermsoftheNESdonotrefertothegenderoftheworkerswhoaccessthem,theirconstructionaroundafull-­‐time,non-­‐casualcontractnormservestoexcludemanycasualworkersandpart-­‐timeworkersfromtheirreach,bothgroupsofwhomaremorelikelytobewomenthanmen,andmanyofwhomareworker-­‐carers.Inthiscontext,itisalsonoteworthythattheonlytwounenforceableprovisionsoftheNESarethoseprincipallyusedbyfemaleworker-­‐carers.2ThischaracterisationoftheNESisdisappointingasitsuggestsa lack of capacity or willingness to engage with gender issues relevant to

makingtheWRframeworkfairerandmorerelevant.

1.1ExtendingNESrightstocasualworkers

InoursubmissionwehadproposedmakingtheNESmoreinclusivebyextendingpaid annualleaveto casualemployeeson apro-­‐ratabasis andprovidingaseparateallocationofcarersleavetoallemployees.TheCommissionrejectsproposalsthatcasualsshouldbeaffordedannualandsickleaveonthebasistheyhaveacasual loadingthatrecognisesthis.InmakingthisargumenttheCommissionincorrectlystatesthat‘casualworkersalreadypossessaright(afteraspecifiedperiodoftimewiththeemployer)toaskfortheircasualpositiontobeconvertedtoapermanentone,butinpracticetherearefewexamplesofthisoccurring(Stewart2013)’(p.196).ThisrightisinfactnotincludedinmostoftheModernAwardsinfeminizedindustriesincludingtheAgedCareAward,theGeneralRetailAwardortheSocial CommunityHomeCareandDisabilityServicesAward.Indeed,extendingthatrighttoemployeescoveredbyalargenumberofawardswherethereisnosuchrightisthesubjectofaclaimbytheACTUinthecurrentfouryearlyModernAwardReview.3

TheCommissionalsoappearstodismissadditionalrightsforcasualworkersonthebasisthatcasualfemaleworkers‘deriveasmuchjobsatisfactionasfemalepermanentemployees,thoughthisisnottrueformales’citingBuddelmeyer(2014)(p196-­‐197).Thisargumentignoresasubstantialliteraturecritiquingsimplisticassertionsthatbecause womenworkers tendto havehigher rates of jobsatisfactionthatthequalityoftheirworkingconditionsarenotofconcern.4Further,thefact

2Therighttorequestflexibleworking(s.65FWA)andtherighttorequestasecond12monthsunpaidparentalleave(s76FWA).

3 See <https://www.fwc.gov.au/awards-­‐and-­‐agreements/modern-­‐award-­‐reviews/4-­‐yearly-­‐

review/common-­‐issues/am2014197-­‐casual-­‐employment>.

4SeeforexampleWatson,I.(2005).Contentedworkersininferiorjobs?Re-­‐assessingcasualemploymentinAustralia.JournalofIndustrialRelations,47(4),371-­‐392;Brown,A.,Charlwood,A.,

Spencer,D.A.(2012).Notallthatitmightseem:whyjobsatisfactionisworthstudyingdespiteit

thatcasualfemaleworkersmayhavehigherjobsatisfactionthanotherworkers doesnotmeantheyaresatisfiedwiththefactthattheirjobsarecasual.5Indeed,the‘genderparadox’wherebywomenareconsistentlymoresatisfiedwiththeirjobs despiteobjectivelyworseworkconditionsthanmen6mayoccurbecausewomenmakecomparisonswithotherwomen,ratherthanwithmen,whoonaverageoccupysuperiorjobs,7orbecausesatisfactionlevelsareshapedbythegendernormsandexpectationsinparticularnationalcontextsataparticularperiodin time.8

TheCommissionsuggestsinsteadthatconsiderationbegiventowhethercasualworkersbeoffered ‘an expandedset of choices’ totrade off ‘their loadingforadditionalentitlements’(p197).Relyingonnegotiationsbetweenindividualcasualworkersandtheiremployersissimplyinadequateanddoesnotrecognizetheunequalbargainingpositionofindividualemployees,particularlywheretheyhavecareresponsibilities.AstheCommissionitselfnotedinrespectofthecasual conversionrightsavailableinsomeawards‘…itmaybethatpeopledonotmakesuchrequestsbecausetheyexpectthemtoberefused’(p.196).Ourproposaltointroducecollectivemeasurestosupportcasualworkersmovingtoanongoingcontractafteracertainperiodofemploymentwouldbefarmoreeffectivethan individualnegotiationsinprovidinghithertocasualworkersnotonlywithpaidleaveentitlements,includingcarersleave,butalsowithsomemeasureofjobsecurityandmorepredictablehoursandschedules.PartoftheACTUclaimwasforadeemingclauseinawardswherecasualconversionclausescurrentlyapplytotheeffectthatwherearegularcasualhasbeenengagedbytheiremployerfor6months,theyaredeemedtobeemployedonapermanentfull-­‐timeorpart-­‐timebasisunlesstheemployeeelectstoremainemployedasacasualemployee.Inourview,suchadeemingmeasure doesnot gofarenough andshouldcover allcasualworkerswhetherornottheirawardcurrentlyhassuchaclause.

1.2Righttorequestflexibleworkarrangements

InourjointsubmissionweadvocatedenhancingtheoperationanduptakeoftheNESrighttorequestflexibleworkarrangements(RTR)by:

  • Wideningcoveragetoallemployeesregardlessofcaringresponsibilities
  • Removingthe12monthservicerequirementforeligibility
  • Ensuringthatemployersareobligatedtoreasonablyaccommodaterequests forflexibleworkbyprovidingarighttoappealrefusalsasappliestootherNES

beingapoorsummarymeasureofjobquality.Work,EmploymentSociety,26(6),1007-­‐1018;Hebson,G.,Rubery,J.,Grimshaw,D.(2015).Rethinkingjobsatisfactionincarework:lookingbeyondthecaredebates.Work,EmploymentSociety,0950017014556412.

5Watson(2005),p.373.

6Clark,A.E.(1997).Jobsatisfactionandgender:whyarewomensohappyatwork?Laboureconomics,4(4),341-­‐372

7Aletraris,L.(2010).Howsatisfiedaretheyandwhy?Astudyofjobsatisfaction,jobrewards,gender

andtemporaryagencyworkersinAustralia.HumanRelations,63(8),1129-­‐1155.

8Smith,M.,Burchell,B.,Fagan,C.,O'Brien,C.(2008).JobqualityinEurope.IndustrialRelationsJournal,39(6),586-­‐603.

  • DevelopinganddisseminatingdetailedguidancematerialontheRTRand initiatingaFairWorkOmbudsmancampaigntoraiseawarenessofthisright;and
  • Protectingworkersagainstdiscriminationonthebasisoftheirpart-­‐timestatusinlinewithAustralia’sinternationalobligationsunderILOConvention 175.

TheCommissiondoesnotbelievethatanyactionneedstobetaken,stating(pp.171-­‐2):

‘Aparticularconcernisthatanyobligationsperceivedtobecostlybyemployersandthatpredominantlyaffectonlyonegroupofemployees,mayunwittinglyleadtoemploymentdiscrimination.Intheparticularproposalsforimprovedleaveaccessdiscussedinbox4.4,theAustralianCouncilofTradeUnions(ACTU)notedthat‘…[d]espitetheissuebeingsignificanttoall workingparents,itismostlywomenwhoareaffectedbytheneedtobalanceworkandfamily’(sub.167,p.170).Thereisthereforeariskthatwomenmayfindtheircareerandhiringprospectsreducedbysomeemployerswithoutanyrealcapacitytodetectthis.Moreover,totheextentthattheprovisionsareseenaslargelyorientedtowomen,menmaybereticentabouteven requestingtousesuchprovisions.

Wemaketworesponsestothispuzzlingreasoning.Firstly,theCommissionhas ignoredtheconsiderableevidencereferredtoinoursubmissionandinmanyothersubmissionsthatwithoutsomewayofmakingthisrighteffective,througharightofappealasexistswithotherNESandinothercountrieswithaRTRmechanism,this rightisahollowandineffectiveone.Indeedrecentresearchonthisveryissueindicatesmanyworker-­‐carerswantmoreflexibilityanddonotask.9Theyare‘discontentednon-­‐requesters’whoreportthattheydon’taskforflexibilitybecausetheyfeelinsecureatwork,ortheyknowtheywillbeknockedbackandmaywell sufferforhavingmadearequest.A2014studyoftheuseoftheRTRoverfiveyears foundthat:10

theexistingRTRisnotenlargingtheproportionofworkerswhorequestflexibilitybeyondthosewhofeltcomfortable‘justasking’beforethelegal RTRwasintroduced.Ensuringthatlessconfident,lesspowerfulworkers,and morefathersandmen,canalsomakeeffectiveuseofthisrightwillrequirewiderknowledgeabouttheRTRandfirmerlegalprotectionaroundit–suchastherighttocontestarefusalthatseemsunreasonableandconfidencethatrequesterswillnotnegativeoutcomesintheworkplace)

ItisforpreciselyforthesereasonsthattheRTRneedstobemademorerobustandinclusiveasperourproposalsinourjointsubmission.

Secondly,theCommission’sargumentthatlabourstandardsshouldnotbemodifiedtoaccommodatespecific‘groups’ofworkerssuchaswomenbecausethismayleadtodiscrimination against thisgroup of workers, notonly highlights the Commission’s

9SkinnerandPocock(2014)ThePersistentChallenge:Living,WorkingandCaringinAustraliain2014,TheAustralianWorkandLifeIndex,CentreforWork+Life,UniversityofSouthAustralia.

10SkinnerandPocock(2014),p.5.

conceptionofthenormativeworkerasunencumberedbycareresponsibilities,butalsoreflectsanapparentacceptanceoftheinevitabilityofemploymentdiscriminationasnotedabove.InAustralia,state,federalandterritorylaws proscribediscriminationonthegroundsofsex,andfamilyresponsibilities/parental and/orcarerstatus.Giventhatthevastmajorityofwomenandmenwillhavecareresponsibilitiesatsomepointovertheirworkinglives,wewouldhaveexpectedtheCommissiontosuggestwaysofensuringthatemployersdonotdiscriminateagainstworker-­‐carers.IndeedthisisthebasisforourproposalthattheRTRbeextendedtoallworkerssothatworker-­‐carers(includingmen)arenotpenalisedforrequestingflexibility.

1.3Maximumweeklyhours

TheNESprovidesforamaximumof38weeklyhoursofworkwithadditional‘reasonable’overtime.IndeterminingwhatconstitutesreasonableovertimetheNESrequiresthattheemployee’spersonalcircumstances,includingfamilyresponsibilities,shouldbetakenintoaccount.Inpracticethisstandardisneitherobservednor enforced.Whilepoliciesare beingputinplacetoencouragewomentoincreasetheirparticipationinpaidwork,thereisanabsenceofpolicyattentiontoreducingoverworkandverylonghours,despiteevidencethatcountriesthatlack

clearmaximumworkingweekregulationalsoshowthewidestgendergapinworktime.11ItisimportantthattheCommissiongiveseriousconsiderationtotheestablishmentofaclear,regulatedandenforcedmaximumworkweekstandard.

Currently,atleastonequarterofallemployedAustraliansworkpasttheNES38hour weeklystandard. Onein eightemployed Australiansworklonger than50 hours perweek,andofthesethevastmajorityaremen.12Thisgendergapinworkingtimehaswidenedoverthepastdecades,evenaswomen’slabourforceparticipationhasrisen.13Thereis nowconsistentevidence thatgendergaps inpay andseniorityareasarelinkedtolongworkhours,14whicharewidespreadinAustralia.Oneproblemwithunregulatedmaximumworkhoursandlongworkhourexpectationsisthatcareeradvancementshiftsfrompromotingmerittopromotingtimeonthejob.15Aswellasundermininginnovationandtheeffectiveuseofhumanresources,rewardinglongerhours ratherthantalentandabilitydiscriminatesagainstindividualswithatimeconstraint(fromcaregiving,healthorcommunitycommitments)andthisismostusuallyaproblemfacedbywomen.

11Landivar,L.(2015)Thegendergapinemploymenthours:dowork-­‐hourregulationsmatter?Work,EmploymentandSociety,29(4):550-­‐570.

12AustralianBureauofStatistics(2010)Australianlabourmarketstatisticstrendsinhoursworked

6105.0.ABS:Canberra.

13AustralianBureauofStatistics(2011)Australiansocialtrendsoveremployment4102.0.ABS:Canberra

14Cha,Y.andWeeden,K.(2014)Overworkandtheslowconvergenceinthegendergapinwages

American SociologicalReview,79(3):457-­‐484.

15O'Neill,O.andO'Reilly,C.(2010)Careersastournaments:Theimpactofsexandgendered

organizationalculturepreferencesinMBA'sincomeattainmentJournalofOrganizationalBehaviour,31:856-­‐876.

1.4Improvedpaidleaverightsforcarersthoseexperiencingdomesticviolence

WeendorsethesubmissionbytheKingsfordLegalCentre16proposingthatemployeesexperiencingdomestic/familyviolenceorsupportingapersonexperiencingsuchviolencebegiventherighttopaidleavetodealwiththecircumstancesarisingfromtheviolence.Wealsosupporttheirproposalthatsuch workersbeprotectedfromvictimisationforexercisingtheserights.

Mostunpaidcarefallstowomen,makingrightstopaidcarer’sleaveessentialforworker-­‐carersandtogenderequality.WeproposedinourjointsubmissionthattheCommissionrecommendaseparateperiodofadditionalpersonalleavetobeused ascarer’sleaveifacarer’spaidpersonalleaveentitlementisexhausted,andthatthisbeavailabletoallemployeesincludingcasuals.17WealsorecommendedthatanewpaidleaveprovisionforemployeeswhoprovidepalliativecareforafamilymemberorotherdependentbeincludedintheNES.SuchprovisionsareincreasinglycommoninEurope.18

2.Improving workingtimeminimainawards

HavingreadanumberofsubmissionstotheWorkplaceRelationsInquiryand followedsubmissionsaspartoftheFairWorkCommission’sModernAwardReview,weproposeestablishingfirmworkingtimeminimainallmodernawards.Theseminimawouldincludeaminimumengagementof4hoursforcasualandpart-­‐timeworkersandrequirewrittenagreementtoaregularpatternofhoursandadequateandgenuineconsultationaboutandnoticeofchangestohoursforpart-­‐timeandcasualworkers.Theseminimawouldbuildonthecurrentprovisionsthatawardsandenterpriseagreementsincludearequirementthatanemployerfollowa consultativeprocedure withan employeeaboutany proposedchangesto theirregularhours,withparticularreferencetotheeffectthismayhaveontheemployee’scaringresponsibilities.19Allareimportantinprovidingtheworkingtimeandincomepredictabilitythatisrequiredbymostworkersandparticularlybylowpaid worker-­‐carers.20

3.PenaltyRates

Inoursubmissionweraisedtheissueofpenaltyratesgivenourconcernaboutemployerproposalstoreducepenaltyratesforworkingunsocialhours,particularlybecauseoftheextremelygenderednegativeoutcomesitwouldproduce.Thiserosionofcurrentminimawouldparticularlyaffectlow-­‐paidworkersinservicesindustriessuchasretailandhospitality,manyofwhomarewomenandmostofwhomhavelowworkplacepower,reflectedinlowratesofunionisation.

17SeealsotherecommendationsinAHRC(2013)InvestinginCare,Recognisingandvaluingthosewhocare,AHRC,Sydney,p.43.

18AHRC(2013),p.72.

19FWA2009,s.145Aands.205.

20Eltonetal(2007).

TheCommissionhasrecommendedreducingpenaltyratesforSundayworktobringtheminlinewithSaturdaypenaltyratesforaspecificgroupofworkers–thosearein‘relevantconsumerorientedindustries’,thatisthehospitality,entertainment,retailing,restaurantsandcafesindustries.TheCommission’srationaleforsuchareductionis‘theevidencesuggeststhatthepenaltyratesforaSundayareoutofstepwiththesocialcostsbornebypeopleworkingonthatday’(p.526).Yetitquarantinesothergroupsofworkersinessentialservices froma reduction inSunday premia,becausethesepremia for thisgroup‘alignwithlong-­‐heldcommunityexpectations,thetypicalworkingarrangementsandthejobskillsrequiredintheseindustries’(p.483).WhilewecontinuetosupportthemaintenanceofexistingSundaypremiaforallworkerswhoworkthatdayoftheweek,wearebaffledbytheCommission’srelianceon‘typicalworkingarrangements’todistinguishbetweenpremiaforemployeesin‘relevantconsumerorientedindustries’andthoseinessentialservices.The‘typical’workingarrangementsformanyemployeesinretailandhospitalityalsoincludeworkingontheweekendsandonSundays.

WeareparticularlyconcernedwiththeCommission’sverypartialuseofAustralianWorkandLifeIndex(AWALI)datatosupportitsrationaleforreducingSundaypremiaforsomeworkers.Notwithstandingthefact,astheCommissionconcedes,that2014AWALIsurveydatashowsthatwork-­‐lifeinterferenceis‘significantly’worseforpeoplewhoworkonweekends,andespeciallyonSundaysrelativetoSaturdays(p.500),theCommissiongivesnoweightto thisfinding. Instead theCommission undertakes, withoutexplanation,averyselectiveanalysisoffourofthefiveindividualAWALIcomponents.21Theyexcludethe AWALIquestionthatasks ‘how often doesworkaffectyourabilitytodevelopormaintainconnectionandfriendshipsinyourlocalcommunity?’TheexclusionofthisAWALIindexcomponentispuzzlinggiventheimpactofweekendworkingonsuchconnectionsandfriendshipsmayhaveforworkers.

InitsfollowinganalysisoffourofthefiveAWALIcomponents,theCommissioncontrolsfortheeffectsonwork-­‐lifeinterferencethatrelatetogender,ageorthepresenceofyoungchildren.TheCommissionthenarguesthatoncewhatitterms‘personaltraits’arecontrolledfor,employeesworkingonSundayshavenoworselifebalanceanddonotfeelanymorerushedthanthosewhoworkonSaturdays(p513).

Therearetwomainissueswiththishighlyselectiveanalysis.ThefirstisthatapartfromexcludingoneoftheAWALIcomponents,theCommissionignoresitsownanalysisoftwoofthefourremainingAWALIcomponents;thatistheextenttowhichworkinterfereswithoutsideactivities, andtowhichworkinterfereswithactivitieswithfamilyandfriends.Table14.10of….clearlyindicatesthatthosewhoworkonSundaysaremuchmorelikelythanthosewhoworkonSaturdaystoreportboththatworkinterfereswithoutsideactivities, and with activities with family and friends. However, in the

21SeeSkinnerandPocock(2014)p.8foradiscussionofthecompositionandrationaleoftheAWALIIndex.

Commission’soverviewreportthisanalysisissummedupas:‘SurveyevidenceshowsthattheoverallsocialcostsofdaytimeworkonSundaysaresimilartoSaturdays’(p.24).EvenbasedontheCommission’sownpartialanalysisthisassertionismisleadingtosaytheleast.

ThesecondandperhapsmorefundamentalcriticismwehaveoftheCommission’suseofAWALIdataliesinitsdecisiontocontrolforgenderandthepresenceofyoungchildren.Thistypeofanalysisessentiallyasksthe‘whatif’questionof howwork-­‐life interference woulddiffer between groupsif the effectof genderandhavingyoungchildrenareremoved.Thatis,howworklifeinterferencediffersbetweenworkerswhoworkSundaysandthosewhodonotwithoutconsideringhowthisisaffectedbygenderandthepresenceofyoungchildren.Giventhatbothgenderandthepresenceofyoungchildrenarekeydeterminantsofwork-­‐lifeconflict,tocontrolforsuchcharacteristicsinananalysisofwork-­‐lifeinterferenceisparticularlyperplexing.Itisawayofdiscountingandmakinginvisibletheveryfactors,genderandcareresponsibilities,thatarelikelytomakework-­‐lifebalanceanissueforemployeesworkingonSundaysratherthanSaturdays.TheCommission’sapproachtoevidencereflectedinitsselectiveandmisleadinganalysis ofAWALIdataunderlinestheCommission’sprofoundfailuretorecognisetherealitiesformanyworker-­‐carersinthe21stcenturyworkplace.

TheproposaltoreduceSundaypenaltyrateswouldimpactdisproportionatelyonwomen22asthischangeisproposedfortheaccommodationandfoodservicesindustry.Inthelatterindustrywomencomprise55%oftheworkforceandintheretailsectorwomencomprise54.5%whilstoverall,womenmakeuponly45.6%ofthelabourmarket.23Approximatelyaquarterofallnon-­‐managerialemployeesin2014workedinoneoftheseindustries.Theiraveragehourlycashpayis$10anhourlessthaninotherindustries($24comparedto$35)(PC,2015:p509).

4.GenderPayGap

InoursubmissionwemadethefollowingrecommendationsinrespectofaddressingtheworseninggenderpaygapinAustralia:

  • Supportforawagesystemthatfairlyrewardsworkwhileremovingtaxand benefitarrangementsthatpenalisesecondincomeearners(usuallywomen).
  • [that]theInquirydirectlyaddressandmakespecificrecommendationsto addressthewidegenderpaygapinAustraliaincludingensuringtheeffectiveapplication of the equal remuneration principles in the Fair Work Act 2009 to addresssystemicinequalitiesinmodernawardsandtoreducedifferences betweenmale-­‐dominatedandfemale-­‐dominatedawardsinsuchareasasthedefinitionofordinaryhoursandthepaymentofpenaltyrates.

22Pocock(2015),‘Holdinguphalfthesky?Womenatworkinthe21stcentury’FayGaleLecture2015,20August,UniversityofAdelaide.

23WGEA(2015)‘Gendercompositionoftheworkforce:byindustry',available:

https://www.wgea.gov.au/sites/default/files/Gender-­‐composition-­‐of-­‐the-­‐workforce-­‐by-­‐ industry.pdfviewed9Sept2015.

AgenderpaygapexistsunderallformsofwagesettingassetoutinFigure 1.

Figure1:Averageweeklycashearningsbygenderpaysettingarrangement

Source:ABS(2014)EmployeeEarningsandHours,Cat.No.6306.0

Wherebargainingtakesplace,whetheratanindividualoracollectivelevel,men andmale-­‐dominatedoccupationswinbetterpayandconditionsthanwomenand female-­‐dominatedoccupations.24Asdiscussedinouroriginalsubmission,thisissuedeservesspecific,high-­‐levelattentionbytheInquiryasthemainlegalmechanismdesignedtoaddressitlieswithintheWRlegalframework.

ThegenderpaygapnarrowedslightlyinMay2015to17.9%.25Howeverthisisnotacauseforoptimismasintherecentpastfractionalgenderpaygapdecreaseshavebeensubsequentlynegatedbyfurtherrises.Thepersistentgenderpaygapsuggests substantialsystemicflawsintheexistingWRframeworkandpractice,whichtheDraftReportfailstoaddress.

TheCommission’sacknowledgementofthewideninggenderpaygap(p.815)iswelcome.However,referencetotheunfairnessofdiscriminationbetweenmenandwomeninadiscussionof‘equalpayforworkofequalvalue’(‘[a]concept[thedraftreportstates]withmanyflaws’,p.448),doesnotdojusticetotheissueanddoes notreflectanaccurateunderstandingoftherelevantprovisionsundertheFWA,whichinfactrefersto‘equalremunerationforworkofequalorcomparablevalue’.26NoreferenceismadetotheimplicationsofthesignificantandpartlysuccessfulSACSEqualRemunerationOrderapplication.Thereisnomentionofanyneedformoreeffectiveprovisions,oroftheinstitutionalandlegalbarrierstoovercoming

24Cooper,R.(2012)ThegendergapinunionleadershipinAustralia:Aqualitativestudy,TheJournalofIndustrialRelations,54(2):131-­‐46.

25WGEA(2015)‘GenderPayGapStatistics’(fromABSAverageWeeklyEarningsMay2015,cat.no.

6302.0) available: https://www.wgea.gov.au/sites/default/files/Gender_Pay_Gap_Factsheet.pdf

26s302,FWA.

genderpayinequalityidentifiedbymanycommentators,27orofthesuccesssomestatejurisdictionshavehadinaddressingthisissue.TheCommission’sFinalReportshoulddrawonthisevidenceandexperiencetoanalysethefailingsofthecurrentWRframeworkinrespectofthegenderpaygap.ThiswouldallowtheCommission tobringthispersistentinequitytotheforeinthediscussionofwhatmightconstituteafairandsustainableWRframework.

Forexample,thegenderpaygapneedstobeconsideredinrelationtowaysof makingenterprisebargainingmoreeffectiveforwomen.TheCommissionhas previouslynotedthe‘poorbargainingpositionofahighlyfeminised,parttimeworkforce’resultingin‘relativelylow’payreceivedbyagedcareworkers,a‘highlyfeminised, part-­‐timeworkforce’.28Inrelation tochildcare workers, theCommissionhasalsofoundthatitwasrareforwagesinthesectortoexceedtheawardbymorethan10percent’.29Thelowpaidbargainingstreamhasprovedsingularlyineffectiveinrelationtoaddressingtheissueoflowpayinfeminisedsectors.

Wealsoopposetheproposedenterprisecontractsandindividualflexibilityarrangements,whicharelikelytohaveagreateradverseimpactonwomenthan men.ThesewouldalsobelikelytoincreasethegenderpaygaptowhichtheCommissionneeds,aswepointoutabove,togivegreaterattentioninitsFinal Report.

5.Conclusion

The existingWRframeworkoftenimpactsonwomenand,inparticular,onworker-­‐carerstotheirdetriment.TheW+FPRTandtheWWRGareprofoundlydismayedbytheDraftReport’sinattentioninitsover1000pagestoananalysisofhowthis occursandhowitcouldbeimproved.Manyofitsdraftrecommendationswill worsenthe situation of women in the labour force. TheDraft Report makes asignificantcontributiontocontinuinginequitycontrarytoitssecondtermofreference.

AswenotedinouroriginalsubmissiontotheInquiry,Australianeedsaworkplacerelationsframeworkthatcan:

‘ensureagoodsocietythatenablesworkforceparticipationwhilesupportingsocialandfamilyrelations,whereworkandcarecaneasilybecombinedwithpositivebenefitsforall.Inthelongrun,productivityisdependentuponsocialreproductionbeforeallelse,makingthesuccessfulcombinationofwork,careandfamilyanongoingeconomic,aswell associal,goal.’

27Layton,R.,Smith,M.andStewart,A.(2013)EqualRemunerationUndertheFairWorkAct2009,FairWorkCommission;Smith,M.andStewart,A.(2014),EqualremunerationandtheSocialandCommunityServicescase:progressordiversionontheroadtopayequity?,AustralianJournalofLabourLaw,27(1):31-­‐56.;Charlesworth,S.andMacdonald,F.(2014),Australia'sgenderpayequitylegislation:hownew,howdifferent,whatprospects?,CambridgeJournalofEconomics,vol.online:1-­‐20.

28 ProductivityCommission(2011)CaringforOlderAustralians,p.359.

29 ProductivityCommission(2015)p.350,citingProductivityCommission(2010).