Rod Myer,
The Age,
June 26, 2006
AUSTRALIA'S estimated complement of between 800,000 and 1.9 million independent contractors could be set for a boost following the introduction of legislation into the House of Representatives last week.
The legislation includes a series of safeguards to prevent "sham arrangements", where workers are reclassified as contractors, and a three-year phase-in period to allow people to adjust to new possibilities.
The bill is far-reaching and will override state provisions that deem some contractors to be employees, who therefore have provisions such as holiday and sick pay. Workers in this category include bus drivers and people packing goods for sale at home.
Unions and the state Labor governments are opposed to the changes, while employer groups and contractor organisations are in favour of them.
ACTU spokesman Ian Wilson said there were three major concerns about the legislation. It would allow employers to reclassify genuine employees as contractors; there would be less protection for contractors; and unions would be less able to protect contractors' rights.
Mr Wilson said people would be reclassified as state regulations were overridden. For example, in NSW, industrial legislation decrees cleaners, timber workers and child care centre managers must get employee benefits. These would go under the new system. But Paul Anderson, industrial spokesman for the Australian Chamber of Commerce and Industry, says his organisation welcomes the policy underpinnings of the legislation.
"But it needs to be carefully examined as it will create new national laws," Mr Anderson said. "It may need to be amended to ensure there are no unintended consequences."
The legislation, Mr Anderson said, was designed to prevent people who were genuine contractors being regulated by state industrial tribunals.
There had been inroads in recent years by tribunals into genuine contracting arrangements extending into professional and semi-professional areas and courier services.
Negotiating the contract legislation has been a highly political process, with some groups managing to maintain state regulation and protection. These are owner-drivers in the transport industry in Victoria and NSW, some forestry contractors, and textile, clothing and footwear outworkers.
Truck owners in NSW, and to a lesser extent in Victoria, can bargain collectively and have some minimum pay rates. Federal Workplace Relations Minister Kevin Andrews explained these exceptions last week, saying owner-drivers had special circumstances, "having to operate within very tight business margins because of the large loans they have to take out to pay for their vehicles".
But Mr Andrews said he was not aiming to set a precedent: the arrangements will not be replicated.
Michele O'Neil, Victorian state secretary of the Textile Clothing and Footwear Union, says she is glad the protection for outworkers has been retained, but the legislation "still allows loopholes for unscrupulous employers".
Regulating outworkers is a difficult battle: for every factory worker there are 15 outworkers, and most operate in the black economy, earning as little as $3 an hour.
Victorian Transport Association chief Phil Lovel says the state's new regulatory system for owner-drivers is about 75 per cent implemented. The system does not fix rates but allows owners access to a tribunal in the case of wage disputes. The Victorian model contracted on a business-to-business basis and brought in some discipline, he said.
"In the $300 million courier industry in Victoria you will notice a difference (when the new Victorian legislation is up and running)," Mr Lovel said. "Some companies might put a radio in your truck and charge you $250 a week for it. Some of those practices will change and we don't see that as a bad thing."
Ken Phillips, a spokesman for the Independent Contractors of Australia, said he was delighted with the legislation but opposed the exclusion of owner-drivers and outworkers.
But Ian Wilson points to NSW, where Optus technicians have been sacked and encouraged to reapply for their jobs as subcontractors, with the company selling them a van at a discount price.
Such action, he said, did not bode well for the future.
Call Chris now on 1300 727 510 or 0417 330 345; to discuss what OPP can do to help you get the quality of both service and staff that so many of our other clients are so happy to receive as a normal part of doing business with us!
