Publishedbythe Centreforwork+Lifeuniversityof South Australia

WorkCare

FamilyPolicies

Election

Benchmarks

2013

© March 2013

Publishedbythe CentreforWork+LifeUniversityof South Australia

POSTALADDRESSGPO Box2471

Adelaide SA 5001,Australia

Authors: TheWork andFamilyPolicyRoundtable

Title: Work Care & FamilyPolicies– ElectionBenchmarks 2013ISBN:978-0-9875120-0-0

ACKNOWLEDGEMENTS

Work, CareandFamilyPolicies– ElectionBenchmarks 2013 was fundedbythe Centre forWork +Life and the Academyof Social Sciencesin Australia(ASSA) workshop funds. TheBenchmarksreflect the scholarship and research based deliberations of themembers oftheAustralian Work + FamilyPolicyRoundtable. The co-convenors ofthe Roundtablewouldliketo acknowledge the administrative andorganisationalsupport provided byDr AlisonElderfrom the Centre forWork+Life.

Work,Care Family

Policies

ElectionBenchmarks2013

TheRoundtableis a networkof30 academicsfrom18 universitiesandresearchinstitutionswithexpertiseonwork,care andfamilypolicy.Furtherinformationaboutthe Roundtableis availableonthe websiteat

A/Prof SiobhanAustenCurtinUniversity Prof MarianBairdUniversityofSydney

Prof RowenaBarrettEdithCowanUniversity

Dr DinaBowmanBrotherhood ofStLaurenceUniversityofMelbourne Dr WendyBoyd SouthernCrossUniversity

Prof DeborahBrennanUniversityof NSW Prof John BuchananUniversityofSydney

Prof Bettina CassUniversityof NSW

A/Prof Sara CharlesworthUniversityofSouth Australia (co-convenor) Prof Fellow EvaCox Jumbunna Indigenous HouseofLearning(UTS) A/ProfLyn Craig Universityof NSW

Dr Marianne FenechMacquarie University

A/Prof MicheleFordUniversityofSydney

Prof Suzanne FranzwayUniversityofSouth Australia

Dr Elizabeth HillUniversityofSydney(co-convenor) Dr Jacquie Hutchison Universityof WesternAustralia A/Prof Therese Jefferson CurtinUniversity

A/Prof Debra KingFlinders University

Prof Paula McDonaldQueensland UniversityofTechnology Dr Virginia Mapedzahama Universityof New England

A/Prof JillMurrayLaTrobe University

Prof Barbara PocockUniversityofSouth Australia (co-convenor) A/Prof FrancesPress CharlesSturtUniversity

Prof AlisonPrestonCurtinUniversity

Dr Belinda SmithUniversityofSydney

A/ProfLyndallStrazdinsAustralianNational University Prof TrishToddUniversityof WesternAustralia

Dr Brigid Van WanrooyFormerlyUniversityof Sydney, nowAdvisory

ConciliationandArbitration(ACAS) UK Prof Gillian Whitehouse UniversityofQueensland

SallyWrightUniversityofSydney

Work,careand familypoliciesin Australia

Australia is in themidst ofa profound demographic andworkplace change,withmorewomen in the paidworkforce andan agingpopulation, both of whichcreate significantnationalchallenges. Amore feminisedworkforce,withhigherrates oflabour marketparticipation,means more workershavecaringresponsibilitiesandface thechallenge ofcombiningthemwith paid work.Anolder population meansprovidingmore care toolder citizensand requires changes to workplaceand caringarrangements to suit theirneeds.

Recentyearshave seen some importantwork, care and familypolicyreforms, includingpaidparentalleave,childcarereform,and the rightto request flexibilityin the NationalEmploymentStandards.However,more change isneeded to ensureagoodsocietythatenablesworkforce participationwhile supportingsocial and familyrelations,whereworkandcarecaneasilybe combinedwith positive benefits for all.In thelongrun,productivityis dependentupon socialreproductionbeforeallelse, makingthe successfulcombination of work, care and familyan ongoing economic,as well as social, goal.

Work, careand familyissueswere keyareasof electoralinterest in the lastfour nationalelections in 2001, 2004, 2007 and 2010.In 2013,these issueshave not diminished inimportance forAustralians.

The Work and FamilyPolicyRoundtable proposesa set of benchmarks against whichelectionpoliciesfor improvingpaid work, care and familyoutcomes in Australia canbeassessed.TheBenchmarksare in keeping with the Roundtable’sgoals ofcontributingtothe development of evidence-basedpolicy, producingclear policyguidelinesandevaluatingpolicyproposals.

The Roundtable believeswork,care andfamilypolicyproposals should:

• Recognise thatgoodmanagement ofthe work-lifeinterface is akeycharacteristic ofgood labour law and social policy;
• Adopt a life-cycle approach to facilitatinggoodwork-familyinteraction;
• Supportwomenandmento be paidworkersand share unpaid work andcare;
• Facilitate employee voice andinfluence overwork arrangements;
• Ensure sustainable workplacesandworkers(eg:through‘do-able’, qualityjobs andappropriate staffinglevels);
• Ensuregender equality, includingpayequity;
• Protect the well-beingofchildrenand other dependants;
• Ensure predictable hours,earningsand job security;
• Promote socialjustice and the fair distribution of socialrisk;
• Treatindividualsfairly,regardless oftheirhousehold circumstances;
• Ensure flexible workingrights arepracticallyavailable to allworkersthrougheffective regulation,educationandenforcement;
• Recognise andsupport the ongoingneed forincome supportwhere earningcapacitiesare limitedbycare responsibilities or other socialcontributions;and
• Adopt policyandactionbased on rigorous,independentevidence.

Positivepoliciesforbetterwork,careandfamilyoutcomes

The Work and FamilyPolicyRoundtable is anetwork of researcherswith expertiseonwork,care andfamilypolicy.Itsgoal is to propose, comment upon, collectanddisseminate research to inform evidence-based publicpolicyin Australia.

The Roundtable held its first meetingin 2004 andsince thenhas activelyparticipated inpublic debate about work, careand familypolicyinAustralia providingresearch-basedsubmissions to relevant public inquiries,disseminatingcurrentresearchthroughpublicationsfor publiccommentaryandthrough the media.

These BenchmarksweredevelopedbytheRoundtable at atwo-dayresearch workshopsupportedbytheAcademyof SocialSciences inAustralia (ASSA) in November 2012.

In thecontext ofthe2013 election, the Roundtable hasidentifiedeight policyareasthat areofparticular importance. Thesepolicyareasreflect thekeycontemporaryissues facingAustraliansas theyattempt to combine work,careandfamily.

• Accessible,affordable, flexible, qualitychildcare
• Paidparentalleave
• Job security, flexibilityand workingtime
• Payequity
• Workforce participationand the taxtransfer system
• Superannuationandretirementsavings
• Work andcare foran agingAustralia

• Institutionalsupportandleadership for workandcare

5

Since the2010 election therehavebeen positive changes in childcare.TheNational QualityFramework(NQF) has been introduced to: improvethequalityof serviceprovisionthroughbetter child/teacher ratios; improve staff trainingrequirements;and develop an early yearslearningframeworkwhich includes the employment ofa university-qualified earlychildhoodeducationteacher inallcentreswithmore than 25children.The NationalPartnershipAgreement on EarlyChildhood Educationand Care (ECEC) hasalso continued to be rolledout, with a mid-2013 deadline for universalaccessto 15 hours ofpre-school educationforallchildren in theyearbeforetheystartschool.

These are important developments for Australianchildren,parentsandchildcareworkers.However, public concernabout the affordabilityof childcare is acute.Officialdata shows theprice paid for childcare byconsumershas increased atthree times thegeneralrate ofinflationsince 2009 (Megalogenis2012).This is despite growinggovernmentsubsidiesandsupportfor theearlychildhoodeducationandcare sectorwhich is budgeted to reach $22.3 billionover thenext fouryears(CommonwealthBudget2012-13). Public concernabout the lack offlexibilityand affordabilityofchildcare services in Australia highlights thepatchwork natureofpolicydevelopment inthis area.

Duplicationandinconsistenciesbetween thestate/territoryandfederalgovernmentsarecontinuingproblems in urgent needofa response.Concernsabout the costsassociatedwithimplementation ofthe NQFmakea review offundingarrangementsessential.Directpayments to childcare servicesthat are linked to high qualityprovision would beapositivepolicychange, but wouldneed to be accompaniedbyappropriate safeguards.

Decentwages foreducators andteachersarecriticalfor the development and sustainabilityofa high qualityearlychildhood educationandcaresector.The lowwages that areendemic inthe sector must rise to attractandretain a skilledworkforce. Currentlythesector faces labourshortages,unfilledvacanciesanddifficulties in recruitmentwitharound 180 educatorsleavingthe sectoreachweek(DEEWR2011).Earlychildhoodqualifiedteachers should bepaidat paritywiththeir colleagues in the schoolsystem.

Allpoliticalparties now supportpaidparental leave. The policychallengeis to ensure theeffective workingofthenew leave schemeand improveits provisionsbased on researchevidence.

Since January2011, theAustralianGovernmenthasprovided 18 weeksParentalLeave Pay(PLP) indexed at thenational minimum wage. This leave scheme acknowledges thecontribution of workingmothers to the workforceand the need to supportparents on thearrival ofa new baby. The mainobjectives of PLPare: to provide financialsupport toprimarycarers(mainlymothers)of newbornand newlyadoptedchildren, allowingthem totake time off work tocare for theirchild; to enhance thehealth anddevelopment of mothersandchildren; to encourage women to continue to participate in theworkforce; and to promotegender equality.

Eligibilityfor theschemerests upon Australianresidency,income ($150,000 or less),andanemployment/worktest (ie: havingworkedfor at least 10 ofthe13 months before the birth oradoption,andfor at least 330 hours in that 10 month period,with no more thanan 8 weekgapbetween 2consecutive workingdays).Payment is made throughemployersto eligible long-termemployeeswhile others receive their payment viatheFamilyAssistance Office.

Recentfigures show thathalf ofthe150,000 applicationsfor PLPare mothers whoearnlessthan $43,000 peryear, suggestingthat theschemeis providingsupportfor those least likelyto have access to employer-paidparental leave (Bairdand Whitehouse2012). This is apositive outcome forgender andsocio-economicequity.

There is agoodcasefor increasingtheparticipation of men in the longer term care ofyoungchildren.As afirststep to address this, Dadand PartnerPay(DaPP) of2 weeksat thenational minimum wageis now available (since1January2012)ona ‘use it orloseit’ basis.There is also agoodcasefor increasingthe periodof DaPPandPLP,and the rate of paymentin relation to the recipient’sregular rateofpay. Other forms ofleaveare paid atreplacementearningsand manyOECD countriesprovide more than 18 weeksPLPleave.

There is aneed to address the mismatch in eligibilityfor unpaid parental leave under theNationalEmploymentStandard(NES) and eligibilityfor the PLP.Recentevidence suggeststhat 5%of mothers(and12%of single mothers) eligible for thePLP werenot eligible forstatutoryunpaidparentalleave underthe NES, onthe basis of their work history(Martinetal.2012).For thesewomen, the PLPprovides vital financialsupport, but theyhaveno rightto return to workafter time off.Inaddition, the right to return to workguarantee in theNESmust be better enforcedand pregnantwomen should be entitled to be safeat workregardlessof their length of service.

The failure toensure superannuation contributions are madeduringpaidparental leaveremains a weakness in the scheme,with longtermnegative consequences for women’sretirementsavings.Thisembedslower lifetimeearningsandretirement income, especiallyfor womenwho takethemajorityof parental leave. Thisrunscounter to recommendations oftheProductivityCommission.

Provision of unpaidcareis essential to the well-beingofoursocietyandeconomy.Children,the frail aged, disabled and the sick,allrequirecare.In 2009, 12%ofthepopulation (2.6million people) hadcaringresponsibilitiesfor people other thanchildren,suchas afamilymember or friendwith adisabilityor illness, or sufferingfrailtydueto old age (ABS2012).The provision of unpaidcare has a significantimpact on workforceparticipation, especiallyfor womenwhoare much more likelythan men to beprimarycarersthroughouttheir life-course (ABS2012).

A range of recent disabilityand health care reforms are built aroundanincreased relianceonunpaidcarers(FaHCSIA2012).At the same time,the national productivityandparticipationagendacallsfor (and in the case of income support policy,mandates) increasedlabour forceparticipationamongst women, the mature aged and those withdisabilities (Daleyetal. 2012;AustralianGovernment2010). Public policiesthat relyon both the provision of unpaidcareandincreasedlabourforce participation arecontradictoryandunsustainableunless jobs areavailable and offer flexibility, securityand predictableworkingtime.Flexible workingarrangements are centralto workingcarers’attempts to combine workandcare, but moreattentionalsoneeds to bepaid to the importance of regularandpredictablehoursand jobsecurityas abasis fromwhichworkerscan seek theflexibilitytheyneed tomanage theircaringresponsibilities(HeronandCharlesworth 2012). This is a particularissue for soleparents,where onlyoneadulthas theresponsibilityfor providing care. While current policysettingsassume thatpaidworkcanbe fitted around careresponsibilities,withoutgood qualityjobs thatprovide flexibilityto meet ongoingas well asunpredictablecare demands, balancingworkandcarewillcontinue to bea struggle formanyworking carers.

Australianwomenoftenundertake part-time orcasualworkas astrategytoreconcileworkandcare, but such jobs do not have the same securityand predictabilityasfull-timeemployment.This is a significantissue,as 46%of femaleemployees workpart-time and 54%

of allemployees working part-time are employedon a casual basis (ABS2011).Whereworkersare definedas‘casual’ theyare excludedfrom a number of NationalEmploymentStandards(NES) rights such as those relatingto paid carers – ie:personalleaveandannualleave – all ofwhich arevital to managingworkand care(HeronandCharlesworth2012).Ifthe NESare to support workingcarers, annual leave andcarer’s leavemust be extended to allemployees.The AustralianHumanRights Commission (AHRC) alsorecommendsthat theNESprovide a dedicatedcarer's leave allocationseparatefrompersonal leave and extendaccess to carer's leavetoallemployees(AHRC 2013).

Awardprovisions in some feminisedindustries allow for casual-like flexibilityin thenumberand schedulingof part-time hours, unlikein full-time employment, this underminespart-timeworkers’ status and rights (HeronandCharlesworth2012).Thissuggests that Australia maynot be meetingits obligations under theILOPart-TimeWork Convention(No.175).

The right to request (RTR)flexible workingarrangements in the NESallows those withchildrenunder school ageto requestchanges to theirworkingarrangements. However, thisRTRlacks anypracticalright to appealanemployer’sunreasonablerefusalto consider therequestandeligibilityis limited to workerswith 12 months service withtheir employer.

Recentresearchshows that most workers do not know about the RTR.Italsoshowsthatmenare less likelythan women to make a request,andmenare morelikelyto be refused(Skinneretal.2012).Internationalevidence suggests that the rightcould be extendedto a broaderpopulation of workers without creatingdifficultiesfor business.The UKGovernmentwillshortlyextend this righttoallemployees,as is thecase in the NetherlandsandGermany.

Werecommend:

1.MakingtheNESmore inclusive byextendingpaid annual leaveto casualemployees on apro-ratabasisandproviding a separateallocation of carersleave to allemployees;

2.Increasingjob securityforworkingcarersbyintroducingmeasures to supportcasualworkers movingto anongoingcontractafter a certain period ofemployment;

3.Establishingfirm workingtimeminimain allmodernawards, includingaminimum engagement of3 hoursfor casual workers andrequiringwrittenagreement to a regular pattern of hoursandadequate notice of changes tohoursfor part-time workers;

4.Enhancingthe operationanduptake oftheNESright to request flexible workby:

• Wideningcoverage to allemployeesregardless ofcaringresponsibilities
• Removingthe12 month service requirementfor eligibility
• Ensuringthatemployersare obligated to reasonablyaccommodaterequestsforflexible workbyprovidingaright toappealrefusalsasapplies to other NES
• Developingand disseminatingdetailedguidancematerial on the RTRandinitiatinga Fair Work Ombudsman campaign to raise awareness ofthisright;and

5.Protectingworkersagainstdiscrimination on the basis of their part-time statusin line withAustralia’sinternationallaw obligations underILOConvention175.

The genderwagegap (GWG) for full-time ordinaryearnings is wideninginAustralia.InAugust 1994, theGWGwas 15.9% and in November2011 it was 17.4%(equal to $247.90per week).TheGWGis wider forfull-time totalearnings(20.8%)and wider againforaverage totalearningsof full-time andpart-time employees(35.3%).Significantdeteriorationsince May2008 is of considerable concernandwenow have thewidest GWGin nearlytwodecades(Toddand Preston 2012).

The national GWGmasks differencesbetween states andindustries.The widest gapsare inhealthcare andfinancialservices (Todd and Preston 2012). Women in the private sector haveexperienced slowerwagegrowthover 2006–11, relativeboth to male private sectoremployees,and to femaleandmale employees in thepublic sector (Jefferson andPreston2012). Clearlythis hascontributed to the overalldeterioration in theGWG. There is alsogrowingevidence ofgender inequityin theremuneration of femalegraduates,evenastheyleave university, suggestinganeed for strategies to reduce thepaygapamongstgraduates,aswellasacross thebroader occupationalspectrum(CoatesandEdwards 2009).

On thepositive side, the2012 EqualRemunerationCase gavea significantpayincreaseto amajorityofthe150,000workers in thecommunityservicesindustry. There arealsonewreportingrequirements for employers in theWorkplace GenderEquality Act2012 whichhavethe potential to improve payequity.However, theEqualRemuneration Case alsohighlightsthe need for further changesasrecommendedbythe House of Representatives 2009 Makingit Fairreport.

Income supportandtaxtransfer policies playan important role in shaping our workandcarepatternsandinfluence the choices households make aboutwhoworksandwhocares.Thedesign ofthe currenttaxtransferregime penaliseswomenwho move betweenworkandcarebyimposinghigheffective marginaltaxrates onearnings. When women increase their paidlabour byreturningto work or increase their totalhours of work, thevalueof their familypaymentsandchildcare benefitdecreaseswhile other means-testedlevies increase (Apps2007).This is a particular problemwhen moving between income supportpayments to paidworkas thetaper rates and concessioncardlevelscan seriouslylimit the gainsfromearnings.

The disincentive that high effective marginaltaxrates poseto women’s work participationwasacknowledgedbytheHenryTaxReview.The Review foundthat the system is inherentlybiasedagainstpaidworkbecause ofthe removalof benefitsasearned income increases,andthe decliningavailabilityof governmentpaymentsas asubstitute for paid work. For soleparents,current policyisparticularlyprescriptiveand the shift to Newstartfor all those with ayoungestchildaged 8 makes it verydifficultfor parents to care foryoungchildrenandfindappropriatework.The lack of secure,predictable,flexible workopportunitiesfor workingcarersundermineswomen’scontinuedworkforceparticipationandgiven the particularchallenges faced bysoleparents, thereis agoodargumentfor specific, additional financialsupportfor those who have limitedearningand time resources.

The introduction ofthe higher tax-free threshold ($18,200) introduced on 1July2012 is apositive change thatwillreduce the effective marginal taxratesfor womenreturningto part-time work in lower paid jobs. However, moreneeds to bedoneto reduce the taxandwelfarepenaltiesfor thosein themiddle-income bracket.Reducingthewithdrawalrate ofsomefamilyrelatedpaymentswouldalleviate severalofthe disincentives women face inincreasingtheir participation in paidwork.

Women’saccess to employer-paid superannuation contributions is limitedbytheir loweraverage earningsand feweryears in paidemployment.This is largelyduetotheir unpaidhouseholdwork,includingchildcareandcare offamilymemberswith a disability,chronicillness or frailtyassociatedwithageing. Thesefactors effectivelyreduce women’slifetimeearningsandtheir superannuation contributions(PrestonandJefferson 2005).

Recent policyattention has focussed on thecoverage ofcompulsoryoccupationalsuperannuationandAustralianBureauof Statisticsdata show that 24%ofmenand 34%ofwomenhave no superannuation (ABS2009).Employersare notrequired topaysuperannuation contributions for employeespaid less than $450 per month,whichaffects thelow paid(Clare 2012).Ingeneral terms, women’ssuperannuationbalancesare approximately60%of men’s(ABS 2009).

The new superannuation contributiontaxrebate ofup to $500 annuallyis apositive steptowardsimproving genderequityandsupportfor lower incomeearners.However,currentpolicyis less comprehensive than theHenryTaxReview recommendationofa zeropercentsuperannuation taxation rate for thoseearningbelowthe tax-free threshold (BatemanandKingston2010). Therelativelygenerousprovisionof Australia’s superannuation taxsystemis regressive, favouringtop income earners.

Increasingthecompulsoryemployer contributionrate from9%to 12% willincreasesuperannuationbalances.However, it will not addressgender inequityin occupationalsuperannuation associated with low income or intermittentworkforce participationcommonto those withcaringresponsibilities(Jefferson 2012). A number ofothernations address thelatter issuebyproviding ‘carer credits’ to top up superannuation(AHRC2013).

The agingofthe Australianpopulationhascreatednew economicand policychallenges.Older workers arebeing encouraged to workfor longerin abid to boost productivityandsustain livingstandards.Thisrequiresworkplacesto meet the changinghealth needs ofamature-agedworkforce and provide supportfor workersascarers ofthefrailaged.Asworkersandcarers,mature-agedemployeesmayneed to alter theirwork hours. The right torequest flexibilityshouldbe available to all workers, includingthemature agedand thosecaringfor the frailaged.

Recentagedcare reformsappropriatelyrecognise the need to provide trainingfor unpaidcarersas well asincreasingrespite services(DoHA 2012). While there is arange ofrespiteoptions for carers ofagedanddisabledpeople provided in the package, these areallshort-termand not designed tosupport a mature aged worker with caringresponsibilities tomaintaintheir workforceparticipation.This is apolicygap that must be addressed. Mostunpaidcare falls to women, making aflexible andsustainable agedcare system critical towomen’slabour force participationduringperiodsof intensive care responsibility.

The dailylifeof Australianfamilieshas fundamentallychanged overthepast few decades.The majorityof Australianwomenwithyoungchildren arenow engaged inpaidwork.The2011 Censusshowsthataround 45%ofallmothersreturn to workwhen theiryoungestchildis lessthan 1yearold, and about 58% whentheiryoungestchild is under 2years old(MegalogenisandGosper 2012).Inaddition, 4.1million employees in 2009 – both menandwomen – were either parents ofa childunder 15years orhad responsibilityto carefor apersonwith a disability,chronic illness orfrailtydueto old age.This means almost 40%ofthe workforce hassignificantcaringresponsibilities theymust combinewiththeir workinglives(AHRC2013). These socialrealitiesmake the development ofa rationalandequitableworkandcareregime anurgentmatter which is essential to Australia’s future well-being,economic productivityand socialinclusion.

Betterwork, familyandcare outcomes in Australianworkplaces relyon morepositiveworkplace leadership andculture.This is especiallysignificant in small firms, whichmake up

themajorityofallAustralianworkplaces.Initiatives to increase workplaceproductivityorleadership shouldgive ahigh priorityto work, care and familyissues,given the role thatpositivepolicyand action canmake to productivity,participationandwell-being.

Existingresearch suggests thatfirst line supervisionandorganisational norms andpracticesshape access to keysupports likeflexibilityand leave (Pococketal.2012).First-linesupervisionandworkplace cultures that are less supportive ofthe reconciliation of workandfamilyareassociated with higher levels ofnegative work-lifeand work-familyinterference(Skinner andPocock 2008). Poorlydesigned jobs andworkoverload can inhibit access toleave, includingannual leave – withmore than halfof Australianworkersnot usingtheir paidholidayleavein theyearin which it accumulates –withnegative consequencesforreconcilingworkand family(Pococketal. 2010).

Manyworkerswho arenot contentwiththeir currentworkarrangements do not make useoftheir right to request flexibilityatworkbecause theirjobs are insecure, theybelieve theirsupervisorswillview such requestsnegatively,or there is no historyofflexible work in theirworkplace(Pococketal.2012).

Importantworkplace culture andleadershipissuessuchas sexual harassmentanddiscriminationagainstpregnantworkers, working carers,olderemployees,and those affectedbydomestic violenceareof increasingsignificance in a workforce that is increasinglyfemale,responsible for thecare of others,andaging.

Australia is awealthycountryandwellplaced to become agloballeader in the area ofwork,careand familypolicy. The importance of good data for policydesign, development andevaluation must not be underestimated.Goodresearch,thoroughcost-benefitanalysis,continuousevaluation, pilotingandan ongoingprogram ofpolicydevelopmentare critical tocost-effectivechange.

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