BSCs urged to implement proactive IR strategy

Dateline: 17.07.2009
Author: Press release

Building service contractors are being encouraged to plan their industrial relations strategy to ensure they comply with the new industrial relations laws. “As we are entering a period of significant change to industrial relations laws, labour intensive businesses such as cleaning contractors need protect themselves against risk of action for non-compliance,” said Rodney Barnes (pictured), Building Service Contractors’ Association of Australia’s recently re-elected national president.

He stressed that contractors need to be aware of major changes that came into effect on July 1 2009 and other provisions that will be phased in from January 1, 2010.

IR consultant Ruth Frenzel of EMA Consulting pointed out that, “The most important changes that have just been implemented under the Fair Work Act which affect the cleaning industry nationally are the unfair dismissal laws, bargaining and transfer of business.

“Effective from July 1, small employers are defined as having 15 full time equivalent (FTE) or less. This will change in January 1, 2011 when the test will be a head count of 15 or less. From 1 July 2009, small employers must be able to demonstrate compliance with the ‘fair dismissal code’ under the Fair Work Act 2009 to be exempt from unfair dismissal proceedings.

“The exemption from an unfair dismissal claim for genuine operational reasons has been discontinued. This means that terminations due to redundancy can now be the subject of an unfair dismissal application. Employers will need to demonstrate that they selected employees for redundancy fairly and equitably, and that they have explored redeployment options for such employees.

“There are also major changes to the bargaining process, regardless of the implementation of the Clean Start Agreements in the various state and territory CBDs. There is a raft of issues that need to be considered. Cleaning contactors may be affected by the new processes, including good faith bargaining requirements and the low paid bargaining provisions of the Fair Work Act.

“Another potential risk for employers is the new transfer of business rules. Penalties may be imposed on businesses in relation to employee entitlements under certain circumstances, where contracts change hands and assets of the outgoing contractor are acquired or transferred to a new contractor.”

Barnes said contractors should seek advice before any action is taken and recommends now is the time to enter into workplace agreements before the Cleaning Services Award is applied from January 1, 2010.

“While the building service industry and all employers have to comply with the current changes, there are higher cost implications deriving from the Cleaning Services Award from 1 January 2010.

“Building service employers are invited to contact their state offices of the BSCAA and apply for membership so they can access the confidential, free and practical strategic advice from senior industrial relations consultants,” Barnes stated.

MEMBER SERVICE KEY TO GROWTH

In delivering his annual report, BSCAA national president Rodney Barnes acknowledged the support of his national board in advancing the national unity of the Association and its stated role as the building service industry’s peak body.

Barnes will continue as national president to complete and consolidate the major initiatives in the areas of industrial relations, communications and review of BSCAA’s national constitution. Gordon Marr of ISS Facility Services has been elected national vice-president.

“The changing government and a new industrial relations landscape is the key driver for the Association’s focus on achieving the best possible outcome for the industry,” Barnes observed.

“With a new government industrial relations policy, the Board’s priority for the last year was to work through the processes of the New Modern Award. This has required in-depth collaboration with all parties including government, the LHMU and other industry bodies. The BSCAA was instrumental in the negotiations with the LHMU to undertake the best possible outcome for members wishing to sign the agreement. We are now in the final stages of producing a final draft for the transitional arrangements with the new modern award to come into effect on the 1st January 2010.

In the last 12 months BSCAA representatives met several times with the Workplace Authority in order to establish a relationship with the upcoming national education campaign to be conducted on award compliance. The same relationship has been established with the Workplace Ombudsman to gain knowledge on issues of compliance on workplace agreements.

The BSCAA has also lodged a proposal for funding to educate the industry with the introduction of the New Modern Award. $366,000.00 has been applied for under the Federal Government funded scheme and, if successful, the format the government has requested will see an education road-show across the country.

“The Board is also giving consideration to the appointment of a national executive officer whose responsibility it would be to take BSCAA forward with the direction of the national board. We see this as the best way to achieve the Association’s goals to service the needs of its members,” Barnes concluded.

www.bscaa.asn.au

BSCs urged to implement proactive IR strategy