Govt's Own Research Shows AWAs Remove Conditions and Cut Take-Home Pay ACTU Media Release 13 June 2006
The Howard Government is ignoring official data that shows individual work contracts (AWAs) are being extensively used under the new IR laws to cut the take home pay of workers and to axe penalty rates, shift allowances and annual leave loading.
ACTU Secretary Greg Combet said today:
"By supporting AWA individual contracts Employment Minister Kevin Andrews is trying to defend the indefensible.
The fact is that AWA individual contracts are clearly designed by the Howard Government to undermine the pay and conditions that are laid down in the various industrial awards.
The Howard Government's new IR laws expressly allow employers to get rid of penalty rates, shift allowances, overtime payments, leave loading, public holiday pay, meal breaks and other important entitlements.
This is what has happened to new Spotlight employees and this is what is happening across the board with AWA individual contracts under the new IR laws.
A senior Government official reported to the Parliament two weeks ago that every individual contract (AWA) registered under the new laws has taken away at least one protected award condition. The Head of the Office of the Employment Advocate Mr McIlwain has told a Senate Estimates Committee:
- Annual leave loading has been erased in almost two thirds (64%) of Australian Workplace Agreements (AWAs) lodged under the new laws
- Penalty rates have disappeared in almost two out of three agreements (63%)
- Shift allowances have been removed in more than half of all new agreements (52%)
- One in six (16%) agreements have dropped all award conditions -- replacing them with just the Government's five minimum conditions
- Four out of ten (40%) agreements have dropped gazetted public holidays
- More than one in five new individual contracts (22%) contain no pay increases over the life of the agreement (AWA).
"These results are in line with previous experience of AWA-style individual contracts in Western Australia. A study of the WA experience in four key labour-intensive industries found that 75% of WA individual contracts contained no pay increase, 67% did not have overtime rates and 74% contained no weekend penalties (ACIRRT, Sydney University).
Also, ABS data shows that the hourly rate of pay for non-managerial employees on AWA individual contracts is lower than that for workers on collective agreements (ABS 6306).
Recent polling by the ACTU in 24 key marginal seats also showed strong community opposition to individual contracts with 70% believing that individual contracts give too much power to the employer.
The Howard Government may be in line with the opinions of big business on its IR laws but it is greatly out of step with community opinion," said Mr Combet.
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