Fair Work Amendment (Equal Pay for Equal Work) Bill 2022

High-Level Summary
The Fair Work Amendment (Equal Pay for Equal Work) Bill 2022 proposes to amend the Fair Work Act 2009 to ensure that labour hire workers are paid the same or more than directly employed workers for the same work, thereby addressing wage disparities.

Summary
The bill amends the Fair Work Act 2009 by introducing a new Division 4 in Part 2-9, which requires that labour hire workers receive a base pay rate that is at least equal to that of directly employed workers. This applies to specific awards where there have been known market failures or where casual employment is not provided for. The bill allows the Minister to add additional awards via disallowable instrument to address emerging market failures. It includes provisions for civil remedies in cases of breaches and applies to new contracts entered into following the bill's assent. From the explanatory memo:
This bill is designed to limit the use of labour hire contracts by removing the incentive of lower wages, encouraging employers to retain permanent staff and train new staff through apprenticeships.

Argument For
Normative Bases
  1. Egalitarianism
  2. Non-Discrimination

This bill should be supported because it aims to eliminate wage disparities between labour hire workers and directly employed workers, thereby promoting fairness and equality in the workplace. By ensuring equal pay for equal work, the bill addresses systemic inequalities and prevents the exploitation of labour hire workers who often receive lower wages. This move aligns with the principle of egalitarianism, advocating for equal compensation for equal effort, which is a fundamental right recognized internationally [Judgment]. Additionally, the bill encourages employers to invest in their workforce through permanent employment and training, potentially leading to more stable and skilled work environments.


Argument Against
Normative Bases
  1. Propertarianism
  2. Competition Policy

The bill should be opposed because it may reduce the flexibility that labour hire arrangements offer to employers, limiting their ability to respond swiftly to changing market demands and unexpected labour shortages. This inflexibility could potentially increase operational costs for businesses that rely on labour hire companies to manage workload fluctuations. Furthermore, by imposing wage parity, the bill might discourage the use of labour hire services, which can limit competition in the labour market and reduce opportunities for workers who prefer or need flexible working conditions [Judgment]. Such regulation could lead to increased labour costs that may be passed on to consumers, affecting market competitiveness.


Date:

2022-02-10

Status:

Before Senate

Sponsor:

ROBERTS, Sen Malcolm

Portfolio:

Unspecified

Categories:

Labour, Discrimination / Human Rights, Social Support / Welfare

Timeline:
10/02/2022
30/11/2022

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