The Role of the Fair Work Commission in Regulating the Australian Labour Market - Assignment Example

Assignment Two: Short Answer Questions Question 1: Explain the role of the Fair Work Commission in regulating the Australian labour market The importance of the Fair Work Commission in regulating the Australian labour market lies in its official responsibilities. These responsibilities were derived from the functions of two former commissions as follows: the Australian Fair Pay Commission with its functions of regulating minimum pay standards for workers and the Australian Industrial Relations Commission with its responsibilities of award modernisation programmes in the Australian workplace. The first way in which the Fair Work Commission plays a role in regulating the Australian labour market lies in the fact that the commission provides a safety net of minimum conditions for workers in Australia (Fair Work Commission, 2013). These conditions include different aspects of the welfare of workers such as minimum pay, awards and hours at work. According to the National Employment Standards, all workers in Australia are entitled to a number of minimum conditions at their places of work (Fair Work Commission, 2013). These minimum conditions cover different aspects of the conditions of workers as follows: minimum hours of work per week; requests for flexible working arrangements by the workers; all types of leaves including parental, long service and annual; notice of termination and pay for redundancy; and lastly, provision of fair work information statements (Fair Work Commission, 2013). Since these are the minimum conditions which all employers in Australia should adhere to when relating to their employees, it is the duty of the Fair Work Commission to ensure that these standards are adhered to across the country. This way, the commission plays a key role in regulating the labour market in Australia by ensuring that minimum standards for employees are provided by the National Employment Standards are adhered to across the country. The second way in which the Fair Work Commission plays a role in regulating the labour environment in Australia arises in its responsibility of facilitating good faith bargaining and the making of enterprise agreements between workers and the employers (Fair Work Commission, 2013). Under this function, the commission has the power to vary or terminate agreements entered in by different enterprises in the country. For instance, the commission can vary an enterprise agreement in order to remove elements of ambiguity or uncertainty within the agreement (Pittard, 2013, p. 89). This happens when a formal complaint is made to the commission by one of the parties covered by the agreement. This way, the commission regulates labour relations in the country by ensuring that all agreements between employers and employees satisfy conditions of fairness and legality. This is related to the responsibility of the commission to issue orders on good faith bargaining between parties in the country. The commission ensures that all bargaining processes within the country meet all the requirements for good faith bargaining during the process. This way, the commission regulates the manner in which bargaining processes between employers and employees proceed so that good bargaining conditions are adhered to. Also, the commission regulates labour relations in the country by having the power to terminate enterprise agreements in the country. This happens when an individual covered by the agreement applies for its termination before the normal expiry date of the agreement arrives or even when the normal expiry time is reached. Since the commission holds the power to approve such terminations, it serves the important role of regulating the labour relations in the country. Another way in which the Fair Work Commission regulates labour relations in Australia lies in its responsibility of standing against unfair dismissals of employees in the country (Fair Work Commission 2013). The commission provides an avenue where employees can lodge complaints regarding the following: unfair dismissals, dismissal of employees where there has been a breach of general provisions for protections and unlawful termination applications (Pittard, 2013, p. 82). The commission regulates the labour relations in the country by hearing and determining cases relating to unfair dismissal of employees in the country. On the other hand, the commission provides an avenue where employees who feel that their dismissal was in contravention of the provisions of general protections can air their grievances. In all these scenarios, the Fair Work Commission hears the dispute and provides remedies for all parties. These may take the form of conciliation between different parties involved in the dispute, making recommendations on the best course of action to be taken or making general opinion regarding the matter at hand. This way, the commission plays an important role in regulating the labour relations in the country. Another way in which the Fair Work Commission regulates labour relations in the Australian economy is in its role in managing industrial actions in the country (Fair Work Commission, 2013). The commission is responsible for authorising employees to take industrial action against a particular employer. This happens after the union seeking to take industrial action makes a formal application to the commission. Also, the commission regulates labour relations in the country by exercising its powers to terminate both protected and unprotected industrial actions in the country. This way, the commission plays a key role of ensuring that all other alternative means of dispute resolution have been exhausted before approving requests for workers to take industrial action against their employers. This function guards against unnecessary industrial actions in the country, thus protecting the interests of not only workers and employers but also those of the overall economy of the country. Lastly, the Fair Work Commission regulates industrial relations in the country through fulfilling its functions in connection with resolving a wide range of both individual and collective disputes in the workplace. By providing an avenue for arbitration and mediation, the commission regulates labour relations in that it reduces instances of litigation and general instances of stand-off between individuals and collectively at places of work. Also, the commission regulates labour relations in the country by influencing different issues connected to labour relations in the country. Issues such as workplace determinations, equal remuneration of employees, transfer of businesses, right of entry and general protections for employees in places of work are determined and influenced by the commission (Pittard, 2013, p. 91). By providing a mechanism of dealing with disputes arising from such issues, holding the discretionary powers to warrant particular actions and making decisions in matters with regard to pay, right of entry and awards, the commission plays a key role in regulating labour relations in the country. Question 2: Outline and discuss the role of the Commonwealth Constitution in setting the framework for the regulation of transport and communications in the Australian economy. The Commonwealth Constitution was enacted in 1901 following the passage of the Commonwealth of Australia Constitution Act of 1900 by the British parliament back in 1900 (Grant, 2004, p. 24). In general, the Commonwealth Constitution remains supreme in the current times. This is because of the fact that it provides general frameworks upon which the government forms rules and regulations that govern its operations. This means that general regulations and rules developed by the government to regulate operations in different sectors of the economy are derived from general provisions contained in the Commonwealth Constitution. As such, the constitution has a considerable influence in the regulatory framework of different sectors of the economy in Australia, including transport and communications. The Commonwealth Constitution plays an important role in setting the framework for the regulation of transport and communications in the Australian economy. The importance of this constitution lies in the fact that the constitution gives governments both direct and indirect powers to influence policies and regulations that are adopted to govern the transport and communication sector in different states. In general, the constitution enables commonwealth governments to influence transport and communication in different states in three different ways: direct investment in transport and communication through government business enterprises, by funding infrastructural projects in the sectors through specific purpose payments to different states and lastly, by influencing the regulatory frameworks adopted by different countries to regulate these sectors (International Telecommunication Union, 2005, p. 18). One way in which the Commonwealth Constitution influences the regulatory framework for transport and communication in the Australian economy is through the legislation and regulations that form the parameters which guide operations in the transport and communication sectors in Australia. By using the provisions of the constitution, the actions and intentions of commonwealth affect the general direction and overall framework for regulation in these sectors (Department of Infrastructure, Transport, Regional Development and Local Government, 2009, p. 23). It is important to note that even in cases where funding is not involved, the investments in transport and communication within the Australian economy take the directions created by the Commonwealth Constitution. This happens through the intentions provided by commonwealth governments to member states. As such, the constitution influences the general direction of investments in the transport and communication sectors in the Australian economy and, by extension, how regulatory laws are made to govern these sectors. Also, several regulations and policies developed to regulate the industry have been influenced by the Commonwealth Constitution. One of them is the National Competition Policy that sets strategic directions and defines general regulations for different sectors in the Australian economy including water, transport and communications (Grant, 2004, p. 25). In addition to this, the National Land Transport Plan, which seeks to provide overall direction in investment and regulation of the transport sector, is derived from the Commonwealth Constitution. For the case of the Tax Assessments Act of 1936, the provisions of the legislation are a reflection of the stance of the Commonwealth Constitution which seeks to encourage the development of private sector investments in different sectors like transport and communication at the expense of public-private partnerships (Department of Infrastructure, Transport, Regional Development and Local Government, 2009, p. 26). Also, regulation of communications in the Australian economy is undertaken by the Australian Communications and Media Authority. This is the body that is charged with the responsibility of setting and implementing regulations for all types of communication in the country. It can be seen that the primary responsibilities of the body are derived from the provisions of the Commonwealth Constitution. These responsibilities include promoting competitive practices in the communication sector in the country, protecting the interests of consumers in the communication sector in the country and lastly, setting standards for equipment and general practice in the sector (Grant 2004, p. 29). Since the primary responsibilities of the body are influenced by the provisions of the Commonwealth Constitution with regard to communication practices, the constitution plays a role in the formation and working of the regulatory framework for communication in the Australian economy. According to the Department of Infrastructure, Transport, Regional Development and Local Government (2009, p. 31), both the transport and communication sectors in the Australian economy are characterised by the following: diversity, dominance by small operators, absence of barriers to entry, sharing in workplace and an absence of operator licensing. As such, the regulatory framework in these sectors seeks to impose prescriptive regulations for operators, permits and performance-based standards as a way of regulating operations. This regulatory framework is governed by the provisions of the Commonwealth Constitution with regard to how the government should conduct its operations in the economy of the country. This forces conventional compliance in the form establishment of legislative provisions emanating from the Commonwealth Constitution. For the case of the transport sector of the economy, the influence of the Commonwealth Constitution in the regulatory framework of the sector has been witnessed by the formation of the Australian Transport Safety Bureau. This is an independent body that is formed under the constitution as part of the commonwealth government statutory agency (Grant, 2004, p. 33). Being completely separated from transport regulators and other service providers in the sector, the agency is responsible for regulating air navigation, civil aviation and general transport safety in the country. This means that the Commonwealth Constitution influences the regulatory framework of the transport sector in the Australian economy by making provisions for the creation of regulatory agencies in the country. Finally, the National Transport Commission (formerly the National Road Transport Commission) was established as a response to the need for regulation in the road transport sector in the country. This was so since the Commonwealth Constitution did not mention regulations relating to road transport in the economy (International Telecommunication Union, 2005, p. 23). Reporting to the Australian Transport Commission, the National Transport Commission is charged with the responsibility of developing regulations that govern reforms in the operations of road, rail and intermodal transport in the country. Question 3: Discuss the importance of National Competition Policy since 1995 and the role of the Australian Competition and Consumer Commission There are several ways in which the National Competition Policy has been important to the overall Australian economy since 1995. With the need for structural reforms and policy changes in the country, the National Competition Policy was established in 1995 following the recommendations of the Hilmer Report (OECD, 2012, p. 158). In overall terms, the implementation of the National Competition Policy has transformed the Australian economy over the years. According to official statistics, growth in the country’s per capita income as well as GDP has doubled as compared to that of other countries in the region (OECD, 2010, p. 152). This led to overall improvements of the Australian economy when ranked in terms of GDP, the rate of unemployment and the stability of the labour market as measured by the labour price index (OECD, 2010, p. 161). According to Cooper, Funnell and Lee (2012, p. 152), increases in the rate of productivity of the Australian economy between 1995 and 2006 can be attributed to the amended National Competition Policy which was adopted in 1995. The national policy on competition provides measures and regulations that are aimed at shaping the management and practices in the labour market. The implementation of these regulations in the labour market has resulted to increases in the level of productivity in the entire economy. Also, the National Competition Policy has been important in the Australian economy by enhancing the overall level of competitiveness in the country’s economy. The provisions of the policy have been responsible in fostering competition in the economy. Also, implementation of the incentives has been important in ensuring that different agencies of the state play an active role in scrutinizing anti-competitive regulations in the country. One way in which the National Competition Policy has been important since the reforms of 1995 has been with regard to operations of government business enterprises in the country. The policy has been important in overseeing changes in the way government businesses are structured and operate so that their structure and operations reflect what is happening in private business enterprises (Cooper, Funnell & Lee, 2012, p. 153). The provisions of the policy have ensured that government-owned business corporations are transformed into competitive business entities with better productivity and return on investment. In addition, the National Competition Policy has been important in initiating structural reforms in the public sector in Australia. According to the OECD (2010, p. 164), recommendations regarding structural reforms in the country have been directed at the public sector since the implementation of the national competition programme. These reforms have been important for public sector corporations in several ways. For instance, structural recommendations that seek to separate regulatory and commercial functions in public enterprises have been important in fostering a competitive environment in the sector. This has eradicated instances in which public corporations play the role of regulating industries in which they also operate as business entities. Also, structural reforms initiated by the policy have ensured that public monopolies undergo vertical and horizontal separation prior to introduction of competition in the sector. This is related to increases in the levels of competition in various parts of the economy on which many business enterprises rely for their commercial operations including road transport and utilities such as gas and electricity. Also, the policy has been important in reviewing and reforming all the laws that that restrict competition in the Australian economy (Cooper, Funnell & Lee, 2012, p. 155). In order to make decisions regarding how the laws should be reviewed, the national competition policies provide for criteria that are based on the costs and potential benefits of anti-competition legislation in the country. In addition to this, the national competition policy has been important to the economy of Australia in helping to develop a national access regime. This has enabled businesses to use important infrastructure that is owned by the government for their commercial operations in a structured and regulated manner in the country. In general, the Australian Competition and Consumer Commission is tasked with the responsibility of enforcing the legal provisions regarding competition practices in the country. In doing this, the commission is required to make decisions concerning clearances, notifications and authorisations for different players in the economy (Australian Competition and Consumer Commission, 2013). As such, the commission ensures that the provisions of the competition code are adhered to by all players in the economy. The second role of the Australian Competition and Consumer Commission arises from its mandate in overseeing fair trading and general protection of the consumers in the economy (Peat 2012, n.pag). As part of its mandate, the body provides oversight on prices in the economy. This is achieved by ensuring that all companies intending to change prices notify the body for approval. This is common for companies operating in sectors of the economy which are required by law to operate under price surveillance by the institution. Also, the body plays an important role of providing legal clarification on matters to do with misuse of market powers and the conduct of cartels (Australian Competition and Consumer Commission 2013). The body is charged with the responsibility of examining the effect of the issue on the general economy and the role played by individuals and institutions in aggravating the situation. In order for the body to determine the best course of action when faced with such scenarios, several criteria are used. According to (Peat 2012, n.pag) the body uses the compliance pyramid to provide legal clarification in matters to do with cartel conduct and abuse of market powers by players in the economy. By fulfilling this role, the commission not only determines the vulnerability of individuals and the potential effects of breaches to the economy, it also determines counteractive measures which can be taken to prevent recurrence of similar breaches in the future. In addition to this, the commission plays a role in matters to do with regulatory settlement of businesses that breach the provisions of the Trade Practices Act. As a way of providing an administrative framework for resolution of disputes arising from contraventions of the Trade Practices Act, the commission may either enforce particular actions or accept formal administrative settlements for business organisations that have acted in contravention of the provisions of the legislation (Australian Competition and Consumer Commission, 2013). Although the essence of this role is to ensure that litigation is avoided, this remains an option when the parties involved in breaching the provisions of the legislation fail to comply with the enforcements of the commission during settlement. References Australian Competition and Consumer Commission (2013). Retrieved 4 December 2013, from: http://www.accc.gov.au/about-us/australian-competition-consumer-commission Cooper, K., Funnell, W. & Lee, J. (2012). Public Sector Accounting and Accountability in Australia. Sydney: New South Publishing. Department of Infrastructure, Transport, Regional Development and Local Government (2009). A National Framework for Regulation, Registration and Licensing of Heavy Vehicles: Regulatory Impact Statement. Retrieved 3 December 2013, from http://www.infrastructure.gov.au/roads/vehicle_regulation/ris/files/HV_RIS_8May2009.pdf Fair Work Commission (2013). Retrieved 3 December 2013, from: http://www.fwc.gov.au/index.cfm?pagename=aboutrole Grant, A. (2004). Industry Structure and Regulatory Bodies. In Grant, A. Australian Telecommunications Regulation. Sydney: New South Publishing. pp. 22 – 52. International Telecommunication Union (2005). Spectrum Management for a Converging World: Case Study on Australia. Retrieved 4 December 2013, from: http://www.itu.int/osg/spu/ni/spectrum/aust-rsm.pdf OECD (2010). OECD Reviews of Regulatory Reform: Australia 2010 towards a Seamless National Economy. New York: OECD Publications. Peat, S. (2012). Australia and New Zeeland: Their Competition Law Systems and the Countries’ Norms. In Fox, E., M. & Trebilcock, M., J. (eds). The Design of Competition Law Institutions: Global Norms; Local Choices. London: Oxford University Press. Pittard, M. (2013). Australian Employment Regulation. In Teicher, J., Holland, P. & Gough, R. (eds). Australian Workplace Relations. New York: Cambridge University Press. pp. 81 - 100. Read More