NATIONAL: The Federal Government has been accused of backflipping on its election promise to protect embattled workers in the textile, clothing and footwear (TCF) industry.
Key union and community lobby groups have argued the government's new industrial relations system would strip small business employees of unfair dismissal rights and diminish protection for migrant workers.
The Textile, Clothing and Footwear Union of Australia (TCFUA), FairWear Queensland and Asian Women at Work have issued scathing submissions to a Senate inquiry into the Rudd government's proposed Fair Work Bill, which is set to replace the controversial WorkChoices scheme from July 2009.
While the Australian Labor Party vowed to 'rip up WorkChoices' in the lead up to the 2007 Federal election, TCFUA officials argued aspects of the legislation had been retained and workers across the industry remained vulnerable.
"The [new] Bill should not be considered a victory for working people because it improves upon the WorkChoices legislation in some areas," the TCFUA noted in its 55-page submission to the Senate Education, Employment and Workplace Relations Committee. "WorkChoices in not the yardstick by which to measure a fair industrial relations system."
While the union has recommended more than 100 amendments to the Fair Work Bill, TCFUA national secretary Michelle O'Neil said one of the key problems facing the sector was reduced protection for small business employees. Under the proposed system, workers employed in businesses with 15 employees or less would only be entitled to unfair dismissal remedies after 12 months of employment. This was a stark contrast to the six-month period offered for employees in larger enterprises.
It is estimated 93 per cent of companies in the TCF industry are comprised of 20 staff members or less.
"The TCFUA oppose absolutely the differing regimes for small business employees as compared to employees of other businesses," O'Neil said. "The system is entirely discriminatory and diminishes the rights of vast numbers of employees who work for small businesses."
Lobby groups claimed the dismissal codes would also discriminate against migrant workers, particularly those working in low-paid production roles. Asian Women At Work is concerned that under the new code, employees could be legitimately dismissed after one verbal warning - a process which would leave non-English speaking workers vulnerable.
In a recent study into the plight of outworkers by the University of Melbourne, 97 per cent of outworkers surveyed were women and 92 per cent were from overseas.
"A verbal warning could be given without a migrant woman worker clearly recognising it," Asian Women at Work argued in its submission, adding that up to three written warnings should be issued. "The informality of this process leaves migrant women workers very vulnerable."
Under the new system, the period for workers to issue unfair dismissal claims would also be reduced to seven days. Asian Women At Work has argued for a 21 day period in order to give employees adequate time to access assistance from unions and community groups.
"The overall message with this proposed new unfair dismissal regime for small business is that the employers have enormous power over us and we have little recourse for defending ourselves."
However, peak industry body the Australian Retailers Association has argued the Fair Work Bill would have a much more profound impact on small businesses, not employees. ARA executive director Richard Evans said SME retailers would be brought to their knees by the new system, which would include average retail wage bill increases of between 11 and 22 per cent.
He said small businesses were already struggling to cope with the new modern retail award - announced by the Industrial Relations Commission in December - which was expected to increase retail wage bills by an average of 14 per cent. Compounding this was expanded union right of entry provisions under the new Fair Work Bill.
"Retailers will now be confronted with an industrial relations environment which pays lip service to employer rights and provides unprecedented power to unions who may have no union members in a retail establishment. This will drive up direct and indirect labour costs and close small retailers unable to create wealth for the economy under the new system."
The Senate Standing Committee on Education, Employment and Workplace Relations is expected to report back on the Bill by February 27.