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These are very important issues that you as a business should be aware of.......
Media Release
September 9, 2011
Tasmanian business call: Overhaul Fair Work now
The Centre for Tasmanian Industry (CTI) – which provides support services and advice to Tasmanian employers – says the state Government doesn’t understand the impact that the Fair Work system is having on Tasmanian workplaces.
CTI wants the state government to join with businesses to seek an early and comprehensive review of the two year old industrial relations system set up by the Gillard government.
Dixie Emmerton, Managing Director of CTI, says the federal government swung the pendulum too far when it introduced Fair Work, and businesses and their employees are now losing out because of a rigid and inflexible system. There is also no link between Fair Work and productivity, Ms Emmerton says.
“Issues impeding business include cumbersome awards, inappropriate clauses which are not applicable to how a specific sector works, increased wage costs, lower requirements for commencement of industrial action, and limited ability to negotiate directly with employees to suit their agreed needs.
“In my discussions with business owners and employees there is an increased feeling that governments are not listening to their needs, either at a State or Federal level”.
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Example of Fair Work rigidity
Employers must employ on the basis of minimum hours, even where there is not the work available to cover the minimum hours required under individual awards.
For instance, an employer may wish to employ a worker for a two hour period, and this may suit the worker’s needs. However, under Fair Work the award may state that the minimum hours of employment engagement are four. The only options available are to pay more hours than the job entails; the employer does the job themselves; or the business simply abandons the task. It is unproductive, denies many Tasmanians work, and costs employers heavily. |
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CTI says the current system is simply not a fair day’s work for a fair day’s pay, and flexibility needs to be restored so that one on one agreements can be made fairly and reasonably between workers and employers.
“With the high Australian dollar there is added pressure on business viability with CTI members stating that they can often have products manufactured overseas, in line with Australian standards, at a lower cost.”
Ms Emmerton said she is continuing to assist various Tasmanian businesses this year to either restructure or down size, and unless the government becomes more flexible in its approach by reviewing current legislation then Tasmania will continue to experience further business closures and more unnecessary job losses.
ENDS
For further information: Dixie Emmerton on: 03 6231 3100
Media Release
19 May 2011
Proposed Tasmanian public service cuts: Bad for business
Tasmanian business is becoming increasingly uneasy about the state government’s plans to axe around 2,000 public service jobs.
The Centre for Tasmanian Industry (CTI) – which provides support services and advice to Tasmanian employers - says business is worried by the prospect of large numbers of redundancies in the public sector.
“The Tasmanian economy is already very fragile, and the likelihood of large scale redundancies in the public sector will have the effect of suppressing business activity across a wide range of sectors,” said Dixie Emmerton, Managing Director of CTI.
“We need to remember that our public servants invest in our economy too, by buying homes, cars, food, and other commodities.
“We don’t believe the state government has thought through the consequences of its plans. Our members are nervous that just the threat of so many redundancies in the public sector is undermining community confidence and therefore spending habits.
“It has the potential to establish a vicious cycle with business putting on hold its own plans for expansion.”
The CTI says that Tasmania is a small state where the public sector is a major employer. “Members of the CTI are concerned that a cut in the public payroll will affect Government services, discretionary spending, and consumer confidence.
“Tasmanian business owners are already facing challenging times, and many of them are consolidating their own structures to trim costs. The last thing they need is a consumer spending strike because of uncertainty and lack of community confidence.
“Business is also concerned that the redundancy scheme being considered by the Government is a quick fix plan which will ultimately cost more than it will save while affecting services across the board.
“As a small state, Tasmania cannot afford to pay for expensive redundancies. As it contemplates cutting numbers, the Government should be looking at each department on its merits and evaluating its service levels before determining the best options to achieve the best outcomes. Not until the government has followed a proper process, in consultation with employees and unions, should it determine how to proceed with job shedding,
“This does not appear to be occurring. The Government’s urgent priority appears to be to cut public sector jobs, without at the same time having a coherent long term plan on the provision of services to the community.”
ENDS
For further information: Dixie Emmerton on 0362 31 3100
Media Release
January 10 2011
Reality of Paid Parental Leave (PPL)
Small business struggling with the paperwork
The commencement of paid parental leave on January 1 (2011) has left employers in Tasmania, especially small businesses, floundering.
The Centre for Tasmanian Industry (CTI) – which provides support services and advice to Tasmanian employers – says business is already struggling with the costs of Government compliance in a whole range of areas. Now a new and complicated administrative process is to be thrust upon them.
“Employers’ arguments are not against the principle of paid parental leave. Rather, they are struggling with the detail and the Government’s decision to make employers administer the scheme from July 1,” said Dixie Emmerton, Managing Director of CTI.
“The government has spent considerable time and money setting up a system to manage the PPL payments; and it has trained staff to administer it, but only until July this year, when the whole burden gets passed to employers.”
The CTI’s first working week of 2011 last week was dominated by members’ calls for advice on how to handle this new responsibility.
“The scheme requires complicated administrative procedures. For instance, payments can be transferred to multiple parties across multiple businesses, making it extremely difficult to manage. If the employer gets it wrong they will be fined. There are also big question marks over PPL payments where the business goes into liquidation; and there is potential for conflict between employers and employees over how the payments are being administered.
“Having set up the scheme, and invested in the infrastructure to administer it, Canberra should continue to run it after July this year, instead of dumping it on the business sector. It will be a struggle for small business, as the calls to our office are indicating.”
Businesses are telling the CTI that the increasing administrative burdens being placed on them by government will affect their recruitment process and business expansion. Small business should be encouraged by Government to employ people and be successful. Instead, it’s being turned into an outsourced administration unit for the government, says the CTI.
“Canberra – as well as the state government – is not listening to the growing concerns of business and is turning them into pay clerks for government schemes,” said Dixie Emmerton.
PPL marks another decision by government which has been taken without any understanding of the impact on business.
“There is still time for the government to take a commonsense approach and manage the scheme properly through Centrelink’s Family Assistance Office, rather than handing over the administration to each and every individual business from July this year.”
ENDS:
For further information: Dixie Emmerton on: 03 6231 3100
Media Release
December 17, 2010
Still confused over Fair Work?
join the growing queue…
The transition of state industrial awards – which were meant to come under the federal Fair Work system from January 1 (2011) – have been delayed amidst confusion amongst both Fair Work and Tasmanian employers.
The Centre for Tasmanian Industry (CTI) – which provides support services and advice to Tasmanian employers – says the confusion is likely to affect sectors such as Tasmanian transport, retail and restaurants in the coming weeks.
Last year, Tasmania voted to refer workplace relations powers to the Commonwealth, with a transition to Commonwealth jurisdiction to be completed by January 1, 2011. Recently, the deadline has been shifted back to February 1, 2011.
“State Awards are now in limbo for another month,” says Dixie Emmerton, Managing Director of CTI. “One of our members called Fair Work this week to clarify pay and roster conditions for their business under the federal system, and was told to call back next month.
“It’s an untenable situation for small business owners. They can’t plan ahead because they don’t know what costs they will incur under the new system. Many can’t even prepare forward rosters for staff.
“In the meantime, because Christmas Day and the following Monday are both declared public holidays this year, small businesses are at a big cost disadvantage, and many of my members say they won’t be able to afford to open for business on Monday December 27th.
“Small business is the life blood of the Tasmanian economy, and politicians and bureaucrats treat the sector as if it was of no importance or consequence. You can’t run your business properly if you don’t know what your labour and other costs are going to be, yet this is the situation that confronts small businesses as we approach the Christmas break.”
The one month delay of the awards transition to federal jurisdiction should see a concentrated effort by Government, unions, and Fair Work to sort out their implementation problems, according to CTI.
“We are dealing with a multitude of issues ranging from public holiday pay to inconsistency with superannuation and complicated transitional provisions. It seems that employers, employees and Fair Work, are completely confused.”
ENDS:
For further information: Dixie Emmerton on: 03 6231 3100
Date: 14 December 2010
Sole Traders, Partnerships –
Important Date Change
All Tasmanian state awards will now cease on 31 Jan 2011.
Fair Work Australia had previously advised that the 2B State awards would cease as of 31 December 2010 however the government has now changed this date to the 31st January 2011.
Therefore on 1 Feb 2011 all sole traders, partnerships and non constitutional corporations, that are currently paying their employees under a 2B State Award, will transition to the Modern Awards. This will mean that all wages, penalty rates and other conditions under the 2B State award will cease.
Don’t forget to ensure you are compliant with the changeover by having:
 Employment contracts outlining the relevant Modern Award or agreement for your employees. Where you will be working under the Modern Award you will need to review the tasks of each employee to determine the correct classification.
Position descriptions (PD’s) for your employees in line with the Award classifications or your agreement.
Policies and procedures that cover the requirements of your business.
Where transitional provisions apply these will also commence on 1 February 2011 and be updated by 20% each year from 1 July 2011.
Date: 22 November 2010
Confusion over Christmas public holidays
- small business urgently seeks answers -
Some workers under federal awards may enjoy a four day public holiday over Christmas this year to the possible detriment of small business and services to the public.
The Centre for Tasmanian Industry (The Centre) – which provides support services and advice to Tasmanian employers – says small business can’t afford it.
Christmas Day and Boxing Day this year fall on a weekend, and alternate public holidays will be declared for the following Monday and Tuesday.
“Business should carefully check their Awards as in discussion with the Fair Work Ombudsman, we’ve been notified that industries such as the restaurant sector may be faced with all four days being classed as public holidays,” said Dixie Emmerton, Managing Director of the Centre for Tasmanian Industry.
“Only some – not all workers – will reap the benefit of this federal decision, making the situation iniquitous for other employees, but also making it very difficult for some businesses to provide services to the public over the period”.
“We’re currently in discussion with the Fair Work Ombudsman to obtain further clarity, but our small business members are most concerned at the situation.”
The Centre – which supports a range of small businesses and small business sectors with disciplines ranging from industrial relations to health and safety - says government decision makers should think hard about the financial and logistical impact on business of their decisions.
“We applaud the Tasmanian Legislative Council for last week throwing out a state Labor proposal to enact an additional public holiday for Anzac Day”.
“Some politicians and bureaucrats think that business has a limitless capacity to pay, and we’re hoping the sense that has been shown in regards to the Anzac Day public holiday also prevails in terms of the substitute public holidays over Christmas.”
ENDS:
For further information: Dixie Emmerton on: 03 6231 3100
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