Book review

This is a must-read book for industrial relations (IRs) practitioners as it analyses the problems with the systems that regulate work – from pay/conditions to discrimination and sexual harassment and proposes new architecture with a central theme of fairness and it is perfectly timed given the election of the new federal Labor government in Australia in 2022.

Published by the Australian Institute of Employment Rights (AIER) it builds on their Charter of Employee Rights, with its purpose to build a work relations system “fit to steer Australian society safely through the remainder of the twenty first century” (Riley Munton, 2022: 2).

The structure is based on an ancient Greek building with a “foundation” and a “roof” supported by “pillars”. In the Foundation: Objectives of the New Architecture for a Fairer System Michael Harmer, President of the AIER, sets the scene with a discussion of the industrial principle of a “fair go all round” from Re Loty and Holloway v Australian Workers’ Union [1971] AR (NSW) 95 which is reflected in the objects of the Fair Work Act 2009. Yet, we have failed to achieve fairness with the exclusion of certain workers and conduct such as bullying, sexual harassment, and discrimination prevalent in many workplaces. He advocates for a re-focus on the principles of fairness. This would require a more holistic approach to workplace issues and new work relations architecture.

In The Roof: Administrative Reform and Institutional Framework Professor David Peetz elaborates on that new architecture, including a new tribunal. The Pillars: There are six pillars, although there is insufficient space to consider all here. These are as follows:

Pillar 1 – Health and Safety and the Environment, Pillar II – Work and Income Security; Pillar III – Fair Standards and Remuneration; Pillar IV – Addressing Discrimination, Bullying and Harassment at Work; Pillar V – A Fair go All Round; Pillar VI – Bargaining in the new Work Architecture.

In Pillar I Ron McCallum AO pitches a fundamental re-think of regulation by adopting our work, health and safety structures, based on the Robens philosophy of shared responsibility. Many practitioners will be familiar with these structures, with the duty of the PCBU, a broad definition of worker and the central role of workers in WHS committees and/or health and safety representatives. McCallum (2022: 63) argues that these structures could be enhanced to meet the changing nature work. In Pillar IV Anna Chapman, Professor in Law at the University of Melbourne goes further to advocate the expansion of WHS structures to the regulation of discrimination, harassment, and bullying because the current system is fragmented, complex, and difficult for workers to access and relies upon individual complainants. A fairer system would include a positive duty on employers and a lead agency setting standards implemented in the workplace generating a culture of shared responsibility.

While a more inclusive definition and empowerment of workers would be a positive change, the challenge is the fundamental power imbalance between employers and employees in Australian workplaces. This is recognised by Mark Perica AM in Pillar V who argues that more is needed to achieve worker participation than expansion to the remit of WHS Committees. Worker voice is limited with the decline in union density and enterprise bargaining and the State needs to move from neutrality to active facilitation of workplace participation, including a strong role for a tribunal to assist workers and employers.

In Pillar VI Keith Harvey and Ben Redford continue the analysis of enterprise bargaining, citing the Productivity Commission's observations on wage stagnation, despite the growth in productivity, with one of the contributing factors the decline in collective bargaining coverage and that it is necessary that workers have the capacity to bargain to receive increases in line with productivity.

The decline is to around 30.4% ¹ of employees and as low as 11% (Stanford et al., 2022) in the private sector. Harvey and Redford (2022) propose discarding our enterprise focus and instead the bargaining unit should be “fair” whether that be single or multi-employer bargaining or even industry bargaining. There is a strong case for this given the international evidence of multi-employer bargaining resulting in greater coverage and better employment outcomes (Stanford et al., 2022) and not surprisingly this was one of the first IR reforms by the new Labor government. Joellen Riley Munton nicely rounds off the substantive discussion with a consideration of who should be covered and Margaret McKenzie analyses the positive economic impact of a more inclusive definition of worker. McCallum concludes by expressing his hope that the book will stimulate further debate and discussion.

While it is challenging to put a structure around the concept of fairness the authors of this book, all highly regarded practitioners, have certainly got the conversation started on this topical subject.