On Wednesday, August 27, 2022, the Federal Government released an issues paper relating to the upcoming Jobs and Skills Summit. The issues paper has identified the bargaining system as a "key enabler" that will lead to secure, well-paid work, as well as growth in productivity.

On Wednesday, August 27, 2022, the Federal Government released an issues paper relating to the upcoming Jobs and Skills Summit.  The issues paper has identified the bargaining system as a "key enabler" that will lead to secure, well-paid work, as well as growth in productivity.

One aspect of the issues paper states that Australia needs an inclusive and balanced workplace relations system aimed at supporting parties in reaching agreement on a variety of workplace conditions, which will enable employers as well as employees to share the gains made from productivity improvements.

The 11-page issues paper puts forward several issues for discussion.  The Treasurer stated that the issues paper has an overarching focus on women's experiences of the labour market and equal opportunities as well as equal pay.

The paper identifies the following 5 themes:

1. maintaining full employment and growing productivity.
2. boosting job security and wages.
3. lifting participation and reducing barriers to employment.
4. delivering a high-quality labour force through skills, training and migration; and
5. maximising opportunities in the industries of the future.

The aim of the above stated points is to provide a boost to job security and wages, as well as revitalizing a dated bargaining system to boost productivity, which will lead to sustainable wage growth.

In addition, the 5 themes address how to ensure that emerging employment practices benefit workers' economic security, as well as how to achieve equal opportunities for women and close the gender pay gap. A further objective of the issues paper is to ensure workplaces are safe and fair.

The paper identifies Australia’s enterprise bargaining system as a key enabler of both productivity growth and secure, well-paid work.  This will occur by allowing workers to negotiate fair pay and conditions above the safety net of minimum employment conditions.  As readers are aware, the current enterprise bargaining system, already provides that ability to workers, unions and employers.  However, due to its mention in the issues paper, it is expected that this aspect of workplace relations will see much legislative change that will result in a much more streamlined system.

To support the focus on enterprise bargaining, the paper states that there are significant barriers to effective bargaining that affects wages and productivity.  One of them mentioned was the proportion of employees covered by enterprise agreements decreasing from a peak of 43.4% in 2010 to 35.1% in 2021.

The paper continues by stating labour hire, casual, rolling fixed-term and gig economy work arrangements should offer greater options to both businesses and workers, but there are serious concerns about their impact on job security and wages.  It is not unreasonable to assume that following the Summit, a raft of legislation will be introduced to clearly define the above, and enfold them within a regulatory framework

The Treasurer is on the record as stating that he is pleased to see many employers, unions and other groups already making constructive contributions in the lead-up to the Summit.

After the Summit, Treasury will accept submissions for an Employment White Paper, which will help map out the future of our skills and labour market the Treasurer said.

If you would like to review the 11 pages of the Issues Paper, it can be accessed at: https://treasury.gov.au/publication/2022-302672