STATEMENT

Fair Work Act 2009
s.156 - 4 yearly review of modern awards

4 yearly review of modern awards—Award flexibility
(AM2014/300)

4 yearly review of modern awards – award flexibility – multiple modern award coverage.

[1] Section 156 of the Fair Work Act 2009 (the Act) requires the Fair Work Commission (the Commission) to review all modern awards every four years.

[2] As part of the Award Flexibility Common Issue to the Review, a Statement issued on 9 October 2015 indicated the intention to engage an external research provider to conduct research into multiple modern award coverage and the utility of majority clauses. 1

[3] The Commission issued a Statement on 9 November 2015 providing a revised scope of the proposed research after considering comments from interested parties. 2

[4] The Commission invited comment on the revised scope of the proposed research by 16 November 2015. 3

Confirmation of the scope of the research

[5] The Commission received comments from the Housing Industry Association (HIA). 4 The Commission has taken into consideration HIA’s comments on the scope of the research and has amended the scope of the research.

[6] The scope of the research now includes the residential construction industry as part of the range of industries to be included, where possible, in the research.

[7] It should again be noted that the Commission has not formed a view on whether majority clauses should be included in any particular modern award.

[8] The final research scope is now confirmed and attached.

Next steps

[9] The Commission will engage an external research provider, with a view to publishing a report of the findings of the research on the Commission’s website by May 2016.

PRESIDENT

[1] The Commission will engage an external research provider to undertake qualitative research to inform itself about the nature and impact of multiple modern award coverage on businesses and employees who are subject to coverage by multiple modern awards.

[2] The research involves seeking the perceptions of employers and employees in small to large enterprises to explore:

• perceived nature and impact (positive or negative) of multiple modern award coverage on businesses and employees;



• understanding of which awards apply to workplaces covered by multiple modern awards and how that understanding may be improved;



• strategies currently used to ameliorate the effect of multiple modern award coverage including (but not limited to):



• whether or not the employers or employees have sought advice about whether the strategies adopted at their workplace comply with workplace laws;



• whether or not the employers or employees were aware of the potential sources of advice as to these matters; and



• what (if any) other strategies were considered by employers or employees and why they were rejected;



• user testing of majority clauses through hypothetical scenarios;



• anticipated effects of applying majority clauses to specific workplaces; and



• perceptions of the utility of majority clauses to overcome issues (if any) associated with multiple modern award coverage.

[3] Information from employee and employer representatives will also be gathered to further inform the collection of information from employers and employees. The research will also seek to include a range of industries where multiple modern award coverage applies including, where possible, residential construction, maintenance, professional, clerical and commercial sales sectors, and labour hire and group training providers.

 1   [2015] FWC 6958.

 2   [2015] FWC 7701.

 3   [2015] FWC 7701 at para. 8.

 4   HIA submission – multiple modern award coverage – research (16 November 2015).

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