Hotline Asia Urgent Appeals -- SUA051124(2)

"WorkChoices" Bill erodes Protection for Vulnerable Workers
~ AUSTRALIA~
24 November 2005

Action Requested || Sample Letter || Background
Please respond before 30 November 2005
update

 

Summary

The Workplace Relations Amendment (WorkChoices) Bill 2005 was passed by the Australian House of Representative earlier this month. The Bill will affect the bargaining power of employees and will limit the intervention of trade unions. Large-scale protests were held in Melbourne, Sydney and Brisbane and other parts of the country on 15 November 2005.

Brisbane's Catholic Justice and Peace Commission and Fair Wear are concerned that the Bill will also seriously affect outworkers in the clothing industry, who already experience exploitative situations, such as long working hours and earning as little as US$2-3 an hour. Outworkers are predominately migrant and refugee women who only speak English as a second language.

The Bill does not include the comprehensive and industry-wide legal protection offered by the current state and federal legislations. It also undermines the implementation of current protections for outworkers. A Senate inquiry into the WorkChoices Bill has recommended some outworker amendments to the Bill.

The Senate will vote on the WorkChoices Bill on 1 December 2005.

 

Action Requested

Please write to the authorities requesting them:

  • to assure adequate protection for outworkers by maintaining current levels of protection and

  • to support the passage of outworker amendments to the WorkChoices Bill in the Senate.

Send letters to:    
The Hon John Howard
Prime Minister
Parliament House
Canberra ACT 2600
Australia
Email: Email can be diverted at http://www.pm.gov.au/email.cfm
Send copies to:    
Mr. Kevin Andrews
Minister for Employment and Workplace Relations
MG 48
Parliament House
Canberra ACT 2600
Australia
Fax:

Email:

(+61) 2 6277 7320

kevin.andrews.mp@aph.gov.au

Diplomatic representatives of Australia in your country    
 

Sample Letter

We are gravely concerned with the impact that the proposed Workplace Relations Amendment (WorkChoices) Bill 2005 will have on outworkers in the clothing industry. Such oversight will damage Australia's long-standing reputation in protecting workers' rights.

As a signatory to the International Covenant on Economic, Social and Cultural (ICESR), your country has a reputation for protecting labour rights. Legislative developments of the last 10 years have recognized the vulnerability of outworkers and the need for industry-wide provisions that protect them. However, the proposed legislation has a tendency to put those efforts in vain.

The WorkChoices Bill will lessen the protection of outworkers in the clothing industry by allowing their employers to "opt out" of outworker award provisions; making outworkers' status as "employees" unclear; placing the onus on individual outworkers to make a claim; and removing their ability to claim unpaid wages from the principal contractor when their bosses disappears without paying.

To prevent these vulnerabilities on the outworkers and to ensure "Fair wages and equal remuneration for work of equal value" (Article 7, ICESR) as well as "The right of trade unions to function freely subject to no limitations" (Article 8, ICESR), we request your government to assure adequate protection for outworkers by maintaining current levels of protection to this vulnerable group. Please support the passage of outworker amendments to the WorkChoices Bill in the Senate.
 

Background

Outworkers or homeworkers are one of the largest group of vulnerable workers in Australia. They are predominately migrant and refugee women who only speak English as a second language. They complete their work in their own homes or in non-formal factories, such as their bosses' garage.

Despite the legal protection provided under the current system, outworkers in the industry still experience exploitative situations. Their working hours can be any day in the 7 days of the week and anytime during the 24 hour period of a day. They work these hours as a result of unrealistic deadlines given for completion of work. The exploitative conditions which outworkers experience often affect other family members and children. There are also high levels of reported work-related violence, abuse and workplace injury.

According to Brisbane's Catholic Justice and Peace Commission's Executive Officer, Mr. Peter Arndt, "Catholic Social Teaching stresses the importance of work to the dignity of people and the rights of workers to fair pay rates and conditions." He added that, "As witnesses to the Gospel, we cannot stay silent if these changes will make it more likely that the weakest in our community are working long hours doing skilled work for as little as AUS$3-4 (US$2-3) an hour."

The Effect of WorkChoices on Outworkers
The current system sets the legal framework to ensure that outworkers receive their minimum award entitlements. The most important aspect of legal protection for outworkers has been the introduction of deeming provisions that ensure that they are recognized as employees. Moreover, it ensures that the supply chain is monitored so that intimidated and vulnerable workers can access these legal protections relatively easily. The use of statutory declarations (included in Clothing Awards and State(s) legislation) is a means for outworkers to provide evidence of underpayments or non-payment for work completed.

The attempt of the proposed legislation, to protect outworkers by the retention of the outworker provisions in the Federal Clothing Award is undermined by other aspects of the legislation, rendering them useless.

According to Fair Wear, the WorkChoices Bill fails to protect outworkers by:

  1. Allowing employers to "opt out" of the outworker award provisions
    It is common practice in the clothing industry for an employer to have a few in-house sample machinists and then contract out the bulk of their production to subcontractors, who then give the work on to outworkers. Current provisions apply to all persons who directly or indirectly engage persons to perform clothing work. WorkChoices will permit employers to opt out of awarding the outworker because they don't directly employ outworkers themselves.

  2. Making outworkers' status as "employees" unclear, leaving them to be mistaken as independent contractors
    WorkChoices overrides the deeming provisions in State legislation, which deem outworkers to be employees. Moreover, there is no definitional mechanism in WorkChoices. This will exclude outworkers from any protection under labour legislation. Although the Government claims that independent contractor legislation will support the right of these people, outworkers do not have the ability to bargain with their employer.

  3. Providing a narrow definition of an outworker
    While a traditional outworker is someone working in their own home doing sewing, some outworkers nowadays work in the boss' garage at the boss' home. It is a concern that if the definition of outworker is not expanded, it is expected that there will be an increase in the above sweatshop arrangements as employers try to put themselves beyond the reach of the law.

  4. Undermining mechanisms that allow the comprehensive monitoring of the activities of companies through the whole clothing supply chain
    Under current Federal & State legislation, the union can access all work records in workplaces which are suspected of breaching award provisions. However, this can be blocked under WorkChoices. Under WorkChoices, the union will have no right to enter a workplace where employees are all covered by Australian Workplace Agreements (a written agreement between an employer and an employee about the employee's terms and conditions of employment). The union will only be permitted to look at records relating to union members and will have to specify the details of a suspected breach in circumstances, while currently it can investigate complaints from its members confidentially.

  5. Placing the onus on individual outworkers to make a claim against the employer
    WorkChoices returns to the past by placing the onus on individual outworkers to make claims and use court processes to remedy their own situation. Outworkers have to start by making a case that they are in fact employees, and then seek to access their entitlements. However, from past experience, when individual remedies are provided, few outworkers actually access the legal proceedings on their own. This is due to fear, ignorance of their rights, fear of their bosses, low levels of English, a lack of confidence in Australian society, financial considerations, and an overall sense of powerlessness in the communities.

  6. Removing outworkers' ability to claim unpaid wages from the principle contractor when their boss disappears without paying.

To address this issue, state governments in New South Wales and Victoria which accounts for the majority of outworkers in the industry, have introduced legislation to allow outworkers to make their claim for unpaid wages to the principal contractor in the supply chain when they can't locate their employer. However, WorkChoices overrides this important mechanism in State legislation.

WorkChoices's effect on the Society
There are concerns that the Bill will have an adverse effect on many people in the community, not just outworkers. According to Fair Wear, many workers will lose benefits such as over-time and penalty rates. Also, the legislation is set to force many workers into independent contractor arrangements, which will mean they will not be privileged to the few protections afforded to employees. This will negatively affect groups such as young people, women, migrants and indigenous people who are in a very weak bargaining position.

For Australian society, there will be a larger group of workers who will become more marginalized and subject to increased stress, with a diminished capacity to provide for their families.

Source:
Australian Council of Trade Unions (http://www.actu.asn.au/work_rights/news/1132030724_2357.html)
CathNews
Fair Wear (
http://fairwear.org.au)

 

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