Victorian Trades Hall Council. The voice of Victorian workers since 1856.Victorian Trades Hall Council. The voice of Victorian workers since 1856.

Penalty Rates, Leave Loading lost as new laws bite

Two months after the introduction of the Howard Government's new workplace laws and we're already seeing their true impact on Australian workers and their families. Penalty rates, shift allowances and annual leave loading are disappearing as employers take advantage of the new laws to strip entitlements and conditions in their workplaces.
A survey of the 6263 Australian Workplace Agreements (AWAs) registered since March has shown that the majority of agreements have abolished entitlements such as penalty rates, shift allowances and annual leave loading. All AWAs had removed at least one award conditions while 16 per cent of agreements offered only the basic entitlements guaranteed under the new laws. The changes leave workers thousands of dollars worse off than they would be under previous agreements.
The admission was made by the Head of the Federal Governments Office of the Employment Advocate(OEA), Peter McIlwain before a Senate Estimates Committee.

$55 Million Worth of Deceptive Advertising

The Howard Government spent $55 million on television adds promising to protect award conditions and now a senior Government official has effectively admitted that this was $55 Million con by saying that every AWA workplace agreement lodged under the new IR laws has dropped at least one protected award condition.
Working families continue to bare the brunt

Working families are struggling to keep their heads above water and with steep rises in petrol and other basic household costs the last thing that they need is a pay cut under the Howard Government's new IR laws.
The proof is in the report…

  • As Head of the Office of the Employment Advocate Mr McIlwain is responsible for scrutinising the content of workplace agreements. He has told a Senate Estimates Committee that:
  • Annual leave loading has been erased in 64 per cent of Australian Workplace Agreements lodged under the new laws
  • Penalty rates have disappeared in 63 per cent 
  • Shift allowances have been removed in 52 per cent of agreements 
  • 16 per cent of agreements have dropped all award conditions - replacing them with just the Government's five minimum conditions
  • 40 per cent of the agreements have dropped gazetted public holidays 
  • 31 per cent of agreements modified overtime loading, with 29 per cent changing rest breaks and 27 per cent altering public holiday payments
  • More than one in five new workplace agreements (22%) contains no pay increases over the life of the agreement.

Only 2 months in and the race to the bottom begins

This is the true picture behind John Howard’s industrial agenda.  It has only been 2 months since the new legislation was passed by the Liberals and we are already seeing large numbers of hard working Australians suffering a cut in their take home pay and the loss of important working conditions.

Penalty rates, shift allowances, leave loading, rest breaks and public holidays are all getting the chop as employers use the new IR laws to axe award entitlements."

Strength in Numbers

With these laws in place it is even more important then ever that people belong to a union.

Union workplaces deliver better pay and stronger conditions for workers.  Collective bargaining has set standards for workers across the economy for over 100 years.

If attempts are made to change your pay and conditions you need to be in a strong union.  Belonging to a union and working together with your fellow work mates is the best way to ensure you and your family are better off.
Join the fight against these unjust laws. Join the National Day of Protest on June 28. Find out more

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