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The Fair Work Commission could be replaced

Employment Law ChangesNovember 28, 2014

The Fair Work Commission could be replaced (Last Updated On: November 28, 2014)

The Australian Human Resources Institute president Peter Wilson has this week commented that the Fair Work Commission and the Fair Work Act are out dated and that the number of commissioners should be cut from 60 to a dozen.

The statement has come from Wilson’s obvious dissatisfaction of the current workplace laws and governing. He said that the reduction in commissioners will limit inconsistencies. The strategy to implement this change, he believes, is to re-write employment laws.

“I think it’s time for a rewrite of the law and for a new body to replace the Fair Work Commission”.

Employers today, under the Fair Work Act, deal with a large degree of red tape wrapped around their business proceedings, hence rewriting the law may be a good idea. It would mean that the enormous restrictions on the way workplaces operate could be eliminated. Wilson suggests that these restrictions are currently “costing us growth and, that’s costing us jobs”.

Mr Wilson also suggested that younger employees prefer to negotiate individual employment terms and contracts but are conscious of securing basic wages and conditions. Currently red tape is hindering employers from providing this flexibility and as a result the staff then turn to unions and a dispute arises.  It is clear that The Fair Work Commission is a governing body that is restricting the employers and the employees it is meant to protect.

He also spoke of unions in a positive way in relation to industry superannuation funds which are currently run by unions. He opposed the unions give up their power as there is a risk of the industry superannuation funds to be given to for-profit rivalry companies, many of which are owned by banks. Wilson said that due to the “notwithstanding value of industry super funds their governance are in need for significant upgrades”.

If the Fair Work Commission is dramatically changed it will mean employers will have the flexibility to run their business to suit the operations it will also mean that should problems arise in their employment relations a more consistent outcome will be achieved.

If your business currently has any employment issues, especially disputes with Unions or a case with the Fair Work Commission, Employsure can provide you with support and advice. Call us on 1300 651 415 today, we are ready to take your call.

*Information sourced via The Australian Financial Review


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