Fair Work Act & Modern Award Chaos

A recent survey of over 400 Queensland businesses has found widespread confusion and non-compliance with new labour laws one month after the Federal Government's new Fair Work regime came into effect on 1 January 2010.

The survey, undertaken by Chamber of Commerce & Industry Queensland (CCIQ), found alarmingly low levels of understanding within the business community about what was actually required of them.

Furthermore only 48.3 per cent of all Queensland businesses regard themselves as compliant with the Fair Work Act according to the survey results. Among small business less than 30 per cent admit they are compliant.

Of those businesses who had made changes to ensure they were on the way to being compliant:

• 16 per cent had reduced their staffing numbers
• 7 per cent had recorded an increase in union activity
• Nearly 40 per cent had recorded a reduction in their business profitability
• 31 per cent indicated the changes had lead to higher direct and indirect labour costs
• 52 per cent of businesses indicated an overall increase in red tape as a result of the changes.

Concerning employers and employees

CCIQ President, David Goodwin, said the findings were concerning for both employers and employees alike.

"It is clear that business is struggling to come to grips with the extraordinary volume of change that is being foisted upon them with this legislation. Employees and employers alike are bewildered by the myriad of amendments and changes while at the same time receiving either a information vacuum or in some cases misleading advice from Fair Work Australia."

"In their rush to introduce the new industrial relations system the Federal Government has clearly overestimated the business communities ability to keep pace with the change and underestimated the impacts of the award modernisation processes.

"The CCIQ survey clearly indicates that hundreds of thousands of Queensland workers today would have no idea of what award applies to them, and therefore what pay and conditions they are and will be subject to."

Further information required

Mr Goodwin said that nearly two thirds of businesses expressed the view that Fair Work Australia was not providing sufficient user friendly information for business to meet their obligations under the new Fair Work Act and modern award system.

"There appears to be a significant case for further educative awareness campaigns and a moratorium on any prosecutions arising from the new laws."

"When we have a situation where 77.6 per cent of Queensland businesses say they would like to receive further information kits and 69.5 per cent of businesses want further seminars on the changes from Fair Work Australia and other organisations, then you have to ask yourself whether the system in place is adequate."

Mr Goodwin said that with over 10,000 Queensland businesses set to be audited by Fair Work Australia authorities over the coming months CCIQ is encouraging Fair Work Australia to continue raising awareness before any stick is taken out of the closet.

"Over the next twelve months there is even more apprehension over the changes.  The changes have significantly added to the cost and complexity to being an employer in Queensland and have subsequently increased the overall level of red tape impacting business without any additional benefits being realised yet,"  Mr Goodwin concluded.

• Report: Fair Work Act & Modern Award Chaos (PDF)

Further information

Chamber of Commerce & Industry Queensland's Employer Assistance Line, available exclusively to members, can assist with Fair Work Act and Modern Awards queries. Contact the Employer Assistance Line by calling 1300 135 822 or by completing the online enquiry form.

Chamber of Commerce & Industry Queensland will be conducting a seminar series on the Effects of the Fair Work Act. Full details will be available from www.cciq.com.au/events.