Ron McCallum Debate - Wesley Conference Centre Sydney

Can I begin by acknowledging the Gadigal people of the Eora nation as the traditional custodians of where we are meeting this evening.

I pay my respects to their elders past and present, and to any First Nations people joining us today.

It is a privilege to speak to you all tonight at the 15th Ron McCallum Debate.

Emeritus Professor Ron McCallum is a giant of labour law in this country.

I pay tribute to the contributions he has made to this field over a long and distinguished career –

Including as a member of the panel that conducted the very first review of the Fair Work Act in 2012.

I also acknowledge Justice Adam Hatcher and Justice Mordy Bromberg.

And I thank James Fleming and the Australian Institute of Employment Rights for having me here tonight.

I am pleased to be able to be here with you in person tonight.

It is wonderful to be among a group of passionate people who are committed to making our workplace relations system, work.

My first interaction with this system came when I was very young.

I started working at 14 years old, at a major retailer, and Canberra seemed like a long way away from Adelaide.

When I went to work, I didn’t really the way that the law shaped my experience at work.

That was until I was asked to sign a newly introduced concept from the Howard Government – an individual workplace agreement.

This contract of employment explicitly eroded my conditions at work.

I tried to negotiate but I found quickly that wasn’t how these new workplace provisions were operating in practice.

And pretty soon after, I found I didn’t have my casual job anymore.

What I also quickly realised, with the help of my union, that was I was able to go to the industrial relations commission, here I had the opportunity to turn up on an equal playing field with my employer, without breaking the bank, and put my case forward to get my job back.

So I learned two lessons: that the laws made in Canberra have a profound impact on the lives of millions of working Australians.

And – that an easily accessible jurisdiction to enforce these laws are critical.

So it’s not lost on me the responsibility I now have as Minister for Employment and Workplace Relations to ensure that our laws are fit for purpose and can be enforced.

But I’m equally aware that everyone in this room is an important part of the ecosystem – whether that’s through advocating for legal change, interpreting or enforcing the law and our legal frameworks.

Tonight’s topic is an especially relevant one.

Making our workplace relations system fairer and more productive has been at the heart of our Government's agenda since we were elected.

Because the relationship between fairness and productivity is not mutually exclusive.

When we came to office three years ago, we understood there was an urgency to act because there were clear gaps in our workplace laws, which workers were falling through.

Our reforms were designed to get wages moving, improve job security and safety, and remove loopholes in the system that undermined fairness and impeded productivity.

Because our workplace relations system should ensure all workers get a fair go.

But also encourage productive, cooperative workplaces.

I firmly believe that one of the best ways to achieve this is through enterprise bargaining.

And that’s why we passed long-overdue reforms that made the enterprise bargaining process easier.

We cut red tape for single-enterprise bargaining.

We provided more options for businesses and employees to make multi-enterprise agreements, particularly in low-paid industries.

We made the Better Off Overall Test simpler, fairer and more flexible.

And we strengthened the ability of the Fair Work Commission to resolve intractable bargaining disputes.

We knew that together, these reforms would help drive better outcomes for those on both sides of the bargaining table.

And I’m pleased to say that the data backs up our efforts.

The latest available figures show that 2.8 million Australians are now covered by an enterprise agreement.

That is the highest number ever recorded since enterprise bargaining commenced back in 1991.

The average annual wage increase for agreements signed in the June quarter is 4.2%, well above the economy-wide average of 3.4% wage increases.

Significantly, newly approved agreements in the June quarter show higher pay increases in the private sector at 4.3%.

Enterprise bargaining is delivering better pay and conditions for workers, but also is allowing flexibility at the enterprise level, allowing for enhanced productivity for employers.

But beyond the benefits to wages and conditions, the bargaining process itself improves understanding between the parties, and provides agency to all sides.

Of course, to ensure fairness and dignity at work, our country needs a strong safety net to underpin bargaining.

A safety net which protects core rights and entitlements of workers – such as the clear national Employment Standards, or our modern awards.

Or protections like our Same Job, Same Pay provisions.

While in many cases, employers and employees are able to work out many issues at the workplace level, there are times when it’s critical that the law is explicit.

That’s why we passed legislation a few months ago that would protect penalty and overtime rates for workers covered by modern awards.

It’s why we introduced Baby Priya’s Bill, which passed through the Parliament just this week, which removed grey areas where they existed in relation to the cancellation of employer-funded paid parental leave in the event of a stillbirth or early death of a child.

But they’re good for business.

The key point I make tonight, and everywhere I go, is that of course these reforms are good for workers.

As a Labor Government, we are proud of that and we make no apologies for it.

But they are also good for business.

Because paying people less does not lead to improved productivity.

It is a fairly obvious result that when workers can see that their wages growing in real terms and their job is secure –

Then they are more engaged, more motivated and committed.

Our Right to Disconnect is a great example of where there are win-wins for workers and employers.

Because the Right to Disconnect is about providing enhanced protections for workers.

But their employers benefit too.

A recent survey from the Australian HR Institute indicated that more than half of employers say the right to disconnect has improved engagement and productivity within their workforce.

Now as I’ve already said, my belief is we achieve better productivity when different perspectives are brought together and discussed.

This is particularly true in workplace relations at a national scale, when workers and their unions, employers and government come together in a tripartite fashion.

Our Government is committed to the concept of tripartism.

I am keen to explore more opportunities for tripartism to bring parties together.

And there is no better example than Safe Work Australia – where governments, employers and workers collaborate to develop laws and policies to deliver safe workplaces.

I am keen to explore more opportunities for tripartism, to bring parties together.

Another way we already see this action is through the National Construction Industry Forum.

Through the NCIF, stakeholders have built genuine relationships built on trust.

They can engage in a collaborative way, rather than as adversaries.

Governments, unions and employers have worked together to develop a Blueprint for the future of the industry.

The Blueprint identifies priority challenges and sets out a forward plan to address them.

Now I’m not pretending that forums like this are a magic wand.

But both the process itself, and putting all perspectives on the table, will drive better outcomes.

Fundamentally, our workplace relations system is about providing dignity at work.

This audience knows, better than anyone, that work is about more than just a job.

It's about economic independence, social connection and psychological wellbeing.  

But ensuring there is opportunity for a dignified, secure well-paid job is equally important.

As a government, we want to extend the opportunity to work as far as possible, ensuring that those who are facing barriers to work or are currently excluded from the labour market, are included.

And I again acknowledge the advocacy of Professor McCallum in this space, both here in Australia and on the global stage.

Like in everyday life, inclusive workplace that actively remove barriers to include those that have been traditionally excluded benefit from broader perspectives and foster innovation.

Obviously, extending the opportunity for work benefits the individual.

But there is also a business imperative to inclusivity.

We know that for example, businesses whose workforces include people with a disability grow their profits more than four times faster than their peers.

An inclusive approach to hiring produces better-functioning, better-performing workplaces.

And at a time when many businesses are looking for workers, there has never been a better time to be breaking down those systematic barriers that have kept people out of the labour market.

People who often bring valuable lived experience and a wealth of knowledge.

But beyond the benefit to individual businesses, it makes sense to the broader economy. 

The economic dividend from a more inclusive Australia is estimated to be worth $12.7 billion – every year. 

We know there is more to do to make our workplaces better represent the Australian population.

But this is not a challenge that Government can tackle on our own.

We all need to work together to change cultural attitudes and break down barriers.

I’d like to close by reiterating that just like all of you, our Government is committed to making our workplace relations system work – for all Australians.

Our reforms have improved fairness and provided a foundation for unions, workers, and their employers to work together to build a more productive economy, for the benefit of all Australians.

Thank you again for the opportunity to speak with you tonight.

Enjoy your evening.

ENDS