Submission to the Fair Work Act Review Panel In response to the Fair Work Act Review

Transcription

1 Submission to the Fair Work Act Review Panel In response to the Fair Work Act Review Prepared by: Queensland Tourism Industry Council 1 P a g e February 2012

2 Queensland Tourism Industry Council ABN Level 11, 30 Makerston Street Brisbane QLD 4000 P (07) W 2 P a g e

3 INTRODUCTION This submission is made to the Fair Work Act Review Panel, by the Queensland Tourism Industry Council (QTIC) in response to the Government s Fair Work Act 2009 review. QTIC has previously provided submissions 1 to government as part of the Fair Work Act 2009 and Award Modernisation process. Despite the concerns raised by QTIC and other relevant tourism bodies, there has been little recognition of the unique nature and needs of the hospitality and tourism industry in the current framework. The Fair Work Act 2009 and modern awards system has subsequently reduced productivity and inhibited flexibility for Australian workers and businesses in the tourism and hospitality industry. When outlining the initial award modernisation process, government remained adamant that no employee would be worse off and no employer would face higher costs. This is not the case for tourism and hospitality businesses and employees who have been burdened with inflexible terms and conditions. This current review process now affords industry the opportunity to articulate further the impacts the new system has had on the tourism and hospitality industry. QTIC seeks the Review Panel s full consideration of the recommendations provided in this submission to ensure the objectives of the Fair Work Act 2009 are achieved for the tourism and hospitality industry now and for the future. QUEENSLAND TOURISM INDUSTRY COUNCIL QTIC is the State peak body for tourism in Queensland. The voice of tourism, QTIC represents the interests of industry operators, regional tourism organisations 2 (RTO) and peak industry associations 3 by providing advice and advocating for policy that delivers on the needs of the tourism industry at local, state and national level. All of Queensland s 14 RTOs are members of QTIC as are 20 of the industry sector associations and in excess of 3,000 regional members, operating in many sectors of the tourism industry. QTIC urges the review panel to recognise the comments made by these sector bodies in their previous, independent, submissions. BACKGROUND TO TOURISM IN AUSTRALIA Tourism and hospitality businesses are a core part of Australia s economy, providing goods and personal and leisure services to both domestic and overseas consumers. The sector is made up of a number of industry sectors 4 ; including accommodation, hospitality, transport, retail, business and major events, recreation, and educational and cultural services employing over 876,000 Australians 5, or 7.9% of total Australian employment 6. The tourism industry in Australia contributed $72 billion to GDP, representing 5.6 per cent share of the Australian economy 7. Tourism is a key economic driver in Australia, supporting regional employment and community growth. Driving tourism in Australia are the small to medium enterprises, with over 93% of businesses in the tourism industry small to medium business. 1 Appendix 1 2 Appendix 2 3 Appendix 3 4 Appendix 4 5 Direct tourism employment: 550,000 persons; indirect tourism employment: 375,900 persons. 6 Tourism Research Australia, Tourisms Contribution to the Australian Economy to ibid 3 P a g e

4 For every dollar of value added generated by activity in the tourism industry, a total of $1.91 of value added is created, placing tourism ahead of major industry such as mining ($1.67), retail trade ($1.80) and education and training ($1.38) 8. To achieve Australia s full tourism potential by 2020, as articulated by Tourism Australia, an estimated 56,000 to 152,000 additional jobs 9 are needed to ensure Australia (and Queensland) remains an internationally competitive tourism destination, delivering first class services. This will require business employment conditions that are flexible for businesses, promote productivity and economic growth for Australia s future economic prosperity. QTIC calls for urgent investment and commitment by government to lead initiatives required to address industry concerns now, and for the future of the industry. 8 Tourism Research Australia, State of the Industry Report Tourism Research Australia, Tourism Industry Potential P a g e

5 RECOMMENDATIONS The recommendations provided in this submission have been identified in the context of the current industry economic conditions and also in recognition of the more long-term opportunities for tourism and hospitality in Australia. The responses provided bring focus to the fundamental challenges faced by the tourism and hospitality industry and articulate priority actions required by government as part of the review process. The single biggest concern for businesses and Australian workers in the tourism and hospitality industry is centered on the failure of the Fair Work Act 2009 to recognise the 24/7 nature of the tourism and hospitality industry. RECOMMENDATION 1 MODERN AWARD(S) ARE THE UNDERPINNING PLATFORM OF THE FAIR WORK LEGISLATION, IT IS CRUCIAL THAT THE CONTENT OF THE AWARD(S) IS CONFIGURED CORRECTLY AND THAT IT APPROPRIATELY REFLECTS THE NATURE OF THE 24/7 INDUSTRY IT IS DESIGNED FOR. a. The experience of the tourism and hospitality industry suggests that the Fair Work Act 2009 fails under Section 3 (a) to provide workplace relations laws that are fair to working Australians, are flexible for businesses, promote productivity and economic growth for Australia s future for the tourism and hospitality industry. b. QTIC acknowledges the Modern Award Review 2012 is occurring in parallel with the Fair Work Act 2009 review. However, there is a need to draw attention to some of the key concerns of the relevant modern awards to better understand the failings of the Fair Work Act 2009 relevant to the tourism and hospitality industry. c. The tourism and hospitality industry has more award-reliant workers than any other sector (upwards of 60%), putting it at the front-line of award modernisation. With this in mind, QTIC is of the view that the tourism and hospitality industry should be treated as a priority industry, under the modern award review d. The lack of recognition for the 24/7 nature of the tourism and hospitality industry in the modern awards has not only threatened employers capacity to create and retain workers but has also led to disadvantaging workers who seek flexible employment opportunities that the tourism and hospitality industry offers. e. Additional factors such as the recent economic downturn, the soaring Australian dollar and even inclement weather, has further exposed the inflexibilities of the modern award legislation. This has added to the burden and subsequently impacting on the employment opportunities for Australians in the tourism and hospitality industry. 10 QTIC submission to the Senate Standing Committee on Education, Employment and Workplace Relations on: The Hospitality Industry (General) Award P a g e

6 CASE STUDY FEEDBACK Tourism and hospitality businesses state they are reducing staffing levels in peak times where penalty rates apply under the modern awards system, as a mechanism to counter the increased wage costs associated with legislation that fails to recognise the 24/7 needs of the industry. A reduction in working hours has led to a reduction in income for those Australians employed in the industry affected by reduced hours, as well as subsequent reduction in productivity (and service quality) in the Australian tourism and hospitality industry. The loss of productivity is perhaps reflected in the recent labour force statistics released by the Australian Bureau of Statistics 11. The statistics confirm the aggregate monthly hours worked in Australia decreased 23.1 million hours, whilst over the same period more people entered the workforce. The results perhaps signal productivity is falling under current legislation in certain sectors, a point particularly relevant for the tourism and hospitality industry. RECOMMENDATION 2 REDUCE PENALTY RATES APPLIABLE TO EVENINGS, WEEKENDS AND PUBLIC HOLIDAYS. a. The Fair Work Act 2009 does not appropriately reflect the vital 24/7 nature of tourism and hospitality business needs and consequently penalises businesses that offer employment opportunities and flexible working conditions that include evenings, on weekends or public holidays. b. The Fair Work Act 2009, Section 3(d) fails in assisting employees to balance their work and family responsibilities by providing for flexible working arrangements in the tourism and hospitality. The legislation is underpinned by ineffective modern award provisions that apply penalties to the tourism and hospitality businesses for operating in normal hours and an industry in its nature provides 24/7 flexible working arrangements for employees. c. To maintain service quality and remain competitive, the tourism and hospitality industry requires operational flexibility in the modern awards, without penalisation, for offering flexible working arrangements to Australians. CASE STUDY FEEDBACK Tourism and hospitality businesses are at the frontline of Australia s economy providing consumer goods and personal and leisure services to both domestic and overseas consumers there is an expectation that businesses will be opened at times of consumer demand, including evenings, on weekends or public holidays. Australians entering the tourism and hospitality industry do so in the knowledge that the industry provides flexible working arrangements, and as such enjoy the flexibility this offers to undertake work in the evening, on weekends or public holidays. 11 ABS, Labour Force Statistics Labour Force, Australia, Jan P a g e

7 Tourism and hospitality operators are increasingly forced to close (and/or operate with significantly reduced staffing levels) on evenings, weekends or public holidays due to increased labour costs. The awards provisions fail to recognise the flexibility offered by the tourism and hospitality for Australians to balance their work and family responsibilities. The minimum wage for front of house staff can rise up to $42 per hour on public holidays, and can exceed $60 per hour for chefs for work on weekends, public holidays and evenings. All of which are normal operating hours for business and makes hiring workers unviable for small business. RECOMMENDATION 3 IMPROVE PRODUCTIVITY BY ALLOWING MORE FLEXIBLE ENTERPISE AGREEMENTS AND INDIVIDUAL FLEXIBLITY AGREEMENTS a. The Fair Work Act 2009, Section 3(f) has failed the tourism and hospitality industry in achieving productivity and fairness through an emphasis on enterprise-level collective bargaining underpinned by simple good faith bargaining obligations and clear rules governing industrial action businesses. b. The replacement of the previous no-disadvantage test with a Better Off Overall test has resulted in reduced flexibility at the enterprise level. The central issue relating to this also lies in the Award provisions. RECOMMENDATION 4 REVISE THE DEFINITION OF SMALL BUSINESS UP TO 25 EMPLOYEES OR LESS AND REVISE THE UNFAIR DISMISSAL CAP UP TO BUSINESSES WITH MORE THAN 25 EMPLOYEES 12. a. The Fair Work Act 2009 Section 3(g) fails to acknowledge the special circumstances of small and medium-sized businesses for the tourism and hospitality industry. b. The definition of small business in the Fair Work Act 2009 is misleading, as it assumes small business to be able to meet other obligations that are imposed on larger businesses. We recommend the definition should be increased to companies with less than 25 equivalent full time employees. c. By counting part-time and casual staff as the equivalent of full-time permanent staff, the definition of small business in the legislation is misleading as it captures small tourism business in an unfair dismissal regime which serves larger business, and makes small businesses applicable to a regime which they do not have the capacity to respond effectively 13. CASE STUDY FEEDBACK Small and medium businesses are struggling to remain viable and compete in the high cost business environment that is emerging. There is concern that government policy and decision making is disconnected from the reality of doing business for small and medium enterprises, especially when it 12 Support for the Restaurant and Catering Association position. 13 National Tourism Alliance, Fair Work Act Review Submission 13 February P a g e

8 is based on aggregate economic indicators which reflect the strength of the resources sector and not the reality of the economy for non-mining sectors 14. Some businesses are facing the issue of employing staff under several different Modern Awards due to their varying roles, which will also bring with it a considerable administrative burden (and therefore cost) in managing the differing requirements of each industrial instrument, for small business. CONCLUSION The recommendations provided in this submission have been identified in the context of the current industry situation and also in recognition of the more long-term needs observed for tourism and hospitality in Australia. The responses provided bring focus to the fundamental challenges faced by the tourism and hospitality industry and articulate priority actions for government. 14 CCIQ, Commonwealth Bank CCIQ Pulse Survey of Business Conditions, September Quarter Accessed 10 February P a g e

9 APPENDIX 1: RELEVANT SUBMISSIONS MADE BY QTIC Submission to the Senate Standing Committee on Education, Employment and Workplace Relations on: The Hospitality Industry (General) Award 2010 Marine Tourism and Charter Vessels Awards 2010 Fair Work Bill Submission 2009 Hon Julia Gillard MP, Letter of concern regarding the potential impost of award modernisation on the tourism and hospitality industry, 2009 APPENDIX 2: TOURISM INDUSTRY SECTOR COVERAGE Service Skills Australia, Tourism, Hospitality and Events Environmental Scan 2011 Industry Hospitality (Accommodation & Food Services) Retail Trade Transport Cultural & Recreations Services Personal & Other Services Manufacturing Education Wholesale Trade Health & Community Services Agriculture, Forestry & Fishing Property & Business Services Communications Government & Defence Finance & Insurance Tourism relevance By definition Accommodation Services are provided to tourism ie. They are spending a night away from their usual place of residence. Food Services are provided to both tourism and local residents. Tourists go shopping, includes motor vehicle retail eg. Petrol, motor vehicle servicing etc for self-drive market Except for self-drive market, tourists use transport (airlines, train, bus, taxi etc) Tourists visit museums, art galleries, theatre, go to the movies or sports events play golf etc Tourists have hair-cuts, massages, beauty therapy. Spa tourism market Manufacturers selling product and tours to tourists eg; Buderim Ginger, Bundaberg Rum, Wineries, Cheese Factories. Food and Wine tourism market Tourism doing education/training courses, emerging education tourism market Distribution channel the wholesalers sell holidays in Australia to Travel Retailers Tourists requiring ambulance, medical services using child care services. Emerging health tourism market eg; people having elective surgery in a cheaper country Farm stay tourism Motor vehicle hiring, property operator eg; time share, tourism renting houses/apartments through real estate agents Tourist using phone and internet Local government services eg; visitor information centres, beach inspectors parking attendants Tourists taking out travel insurance and using bank services 9 P a g e

10 APPENDIX 3: QUEENSLAND REGIONAL TOURISM MEMBER ORGANISATIONS Tourism Region Regional Tourism Organisation Townsville Townsville Enterprises Limited* Tropical North Queensland Tourism Tropical North Queensland Mackay Mackay Tourism Limited Whitsundays Tourism Whitsundays Outback Outback Queensland Tourism Association Inc Sunshine Coast Sunshine Coast Destination Limited Fraser Coast Tourism Fraser Coast Central Queensland Capricorn Tourism and Economic Development Organisation Ltd* Gladstone Gladstone Area Promotion and Development Limited* Bundaberg Bundaberg North Burnett Tourism Gold Coast Gold Coast Tourism Southern Downs Southern Downs and Granite Belt Regional Tourism Brisbane Brisbane Marketing* Toowoomba Golden West Toowoomba Golden West Tourism and South Burnett Tourism *Denotes RTOs that are responsible for the economic development and marketing of a region. APPENDIX 4: INDUSTRY ASSOCIATIONS COUNCIL MEMBERS Industry Associations Association of Marine Park Operators Australian Federation of Travel Agents Australian Timeshare and Holiday Ownership Council Backpacking Queensland Caravanning Queensland Clubs Queensland Far North Queensland Tour Operators Association Accommodation Association Australia Australian Resident Accommodation Managers Association Queensland Bus Industry Council Queensland Hotels Association Queensland Information Centres Association Queensland Wine Industry Association Restaurant and Catering Queensland Surf Lifesaving Queensland Taxi Council of Queensland Whitsunday Charter Boat Industry Association 10 P a g e