ACTU secretary Dave Oliver said the proposed contracts would allow employers “to put these contracts on the table on a take-it-or-leave-it basis where they could find themselves signing into something that trades away their penalty rates, shift loadings and rostering hours of work”.
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The commission also recommended creating a new statutory enterprise contract for small to medium businesses, giving employees the option of opting out of it after a year if they are not happy with it.
“The key message of this inquiry is that fix, not replacement, should be the policy imperative”, the draft report says.
The proposals would see the implementation of a two-tier industrial relations system on penalty rates for medical and emergency workers, and award-stipulated rates for semi and unskilled workers, The Australian reports.
The Productivity Commission report recommended Sunday penalty and overtime rates should be aligned with Saturday rates across the retail and hospitality sectors.
“There is a good case for extra payments for those who work at times that most of us would prefer not to and there is no case for changing penalty rates for essential services where community attitudes established long ago have not shifted”, he says.
“Changes to the workplace relations framework have to recognise that it is not just about the economics”.
It recommends tweaking unfair dismissal laws, so employees can only receive compensation when there was no evidence of underperformance or misconduct.
Given the effect on the income of some workers, the commission proposes a lag before changes, so people can “adjust their lives and working patterns”.
Enterprise agreements should face the “no disadvantage” test rather than the “better off overall” test.
The commission found that migrant workers, especially illegally working migrants, were vulnerable to exploitation and suggested tougher penalties.
THE Productivity Commission will on Tuesday release the draft report of its inquiry into workplace relations.
The report said decisions like that of the Victorian government, which has declared AFL grand final eve a public holiday, should not be able to unilaterally trigger costs for employers.
Members should be appointed from a shortlist selected by an expert panel, with future presidents and vice-and deputy presidents given a five-year term.
The Australian Chamber of Commerce and Industry welcomed the recommendation on penalty rates but said it was disappointed the commission did not fully address employers’ concerns on unfair dismissal laws and some other issues.
“However they try to do it, the Abbott government needs to remember that slashing the pay and workplace rights of hardworking Australians is deeply unpopular and the union movement will fight to make sure it doesn’t happen”.
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“Any cuts to penalty rates will be a body blow for young people across the country”, Mr Bandt said.
