Chapter 2 - Review of annual reports

2.1        As previously detailed in the committee's Annual Reports (No. 2 of 2010), the Fair Work Act 2009 replaced six workplace relations agencies with Fair Work Australia and the Fair Work Ombudsman.[1] This chapter examines the final annual reports of three of those agencies, the Workplace Authority, the Australian Industrial Relations Commission and the Australian Industrial Registry.

2.2        In Annual Reports (No. 2 of 2010) the Committee noted that the two new bodies, Fair Work Australia and the Fair Work Ombudsman, both fall under the Financial Management and Accountability Act 1997. One of the requirements for bodies under this Act, if applicable, is to report on their performance against service charter, customer service standards, complaints data, and their response to complaints.[2] The committee encourages the new agencies to include this information, including measures of their effectiveness in providing customer service, in their annual reports.

Department of Education, Employment and Workplace Relations

2.3        The Department of Education, Employment and Workplace Relations (DEEWR) Annual Report for 2009-10 was tabled in the House of Representatives on 28 October 2010 and in the Senate on 16 November 2010.

Departmental overview

2.4        The Secretary's overview emphasised the work DEEWR has done in response to the economic downturn. The goal was to help Australians recover from the downturn by expanding employment opportunities and increasing skill levels. DEEWR did this in a number of ways, including by supporting the government's commitment to provide 711,000 training places over five years, through initiatives like the Productivity Places Program and the Apprentice Kickstart program. The department also implemented programs like the Skills for Sustainable Growth Package and the National Green Jobs Corps to increase skill levels among Australians.[3]

2.5        The overview of the annual report also provides information on a number of achievements made in different policy areas by the department. Some developments for the 2009–10 financial year are listed below: 

Workplace Relations:

• The reporting period saw the consolidation of the Fair Work Act, which created the 'legislative and institutional framework for the new workplace relations system'. During 2009-10, the department provided policy advice to the government on the implementation of the new system.[4]

Higher Education:

• The government response to the Bradley Review of Higher Education resulted in a number of reforms, including improvements to student income support and a new 'student-centred funding model'.[5]

Education Revolution:

• Work on both the Building Education Revolution (BER) and the Digital Education Revolution has continued. DEEWR arranged for more than 300,000 computers to be delivered to schools.[6]

Early Childhood:

• DEEWR worked closely with other government agencies to prepare for the government's paid parental leave scheme, which began on 1 January 2011.[7]
• The department implemented government reforms to the Child Care Rebate.

'Closing the Gap':

• A three year partnership between DEEWR and the National Rugby League, 'Learn Earn Legend!' commenced in February 2010.
• The business leaders' forum 'Indigenous Employment, Everyone's Business' led to the creation of the Indigenous Employment and Enterprise Action Group.[8]

Report on performance

2.6        The DEEWR Annual Report 2009-10 analyses the performance of the department by outcome. Key achievements of each section are listed, as well as the key priorities of the financial year and an outlook for the year ahead.

2.7        Following the collapse of ABC Learning, the government provided funding to the ABC2 centres so they could continue to operate while a court-appointed receiver managed their sale. Towards the end of the bidding process, Goodstart, a group comprised of four non-profit organisations, requested a loan from the government to help cover the cost of buying the centres. The government loaned Goodstart $15 million over seven years, to be paid back in full. Goodstart has committed to provide high quality childcare with an emphasis on supporting children from disadvantaged backgrounds.[9]

2.8        One of the key goals for outcome 2 was achieved when DEEWR released The National Strategy for Young Australians in April 2010. This provides a framework for government engagement with young people and sets out eight priority areas for action.[10]

2.9        During 2009-10, the government aimed to 'increase the number of students participating in tertiary education and receiving qualifications'.[11] Between 2008 and 2009 domestic enrolments (full-time equivalents) increased by 5.8 per cent, which represents higher than anticipated growth. Similarly, domestic post-graduate enrolments grew by 7.5 per cent and undergraduate completions rose by 3.7 per cent. Post-graduate completions increased by 4.1 per cent and indigenous enrolments increased by 9.8 per cent.[12]

2.10      A national workplace relations system for the private sector began on 1 January 2010. At the centre of the scheme is a multilateral intergovernmental agreement, signed by the Commonwealth and all state and territory governments except Western Australia. This agreement sets out the governance arrangements for the system. As a result of the new system, 'all private sector employers and employees in referring states now have access to the same workplace laws, tribunals, minimum conditions, rights and entitlements'.[13]

External scrutiny and reports by the Auditor-General

2.11      During 2009-10, the Australian National Audit Office tabled two reports relating to the operations of DEEWR: Audit Report No. 12 2009-10, Administration of Youth Allowance; and Audit Report No. 33 2009-10, Building the Education Revolution – Primary Schools for the 21st Century. The latter assessed the effectiveness of the government's establishment of the Primary Schools of the 21st Century (P21) element of the BER program. The report concluded, 'There are some positive early indicators that the program is making progress toward achieving its intended outcomes', and recognised that 'many of the issues arising were a function of the compressed timetable for the establishment of the program, given the prevailing economic downturn.'[14]

2.12      The committee considers DEEWR's 2009–10 annual report to be well presented and in compliance with the reporting requirements of a Commonwealth department.

The Office of the Australian Building and Construction Commissioner

2.13      The Office of the Australian Building and Construction Commissioner (ABCC) reported that it achieved all three of its key performance indicators (KPI) during 2009-10.[15] The first KPI is the 'level of satisfaction of clients with quality and timeliness of advice and assistance provided by the ABCC' (target: 75 per cent of clients surveyed satisfied or highly satisfied). The second KPI is 'timeliness in bringing actions against contraventions of [Building and Construction Improvement Act 2005], [Fair Work Act 2009], [Workplace Relations Act 1996], [Independent Contractors Act 2006], agreements, awards and orders' (target: 75 per cent of cases commenced within 18 months of complaint). The third KPI is the 'level of satisfaction of a range of industry participants with contact aimed at promoting appropriate standards of conduct' (target: 75 per cent of surveyed industry participants satisfied or highly satisfied).[16]

2.14      During the reporting period the ABCC undertook 1344 site visits, fewer visits than in 2008-09, continuing a four year downward trend. The ABCC attributes this to an increased understanding of workplace laws and regulations throughout the industry, and an improved knowledge of the National Code.[17]

2.15      The ABCC dealt with 2645 enquiries during 2009-10, an increase of 285 on the figure recorded for 2008-09. The ABCC states this is a result of 'increased funding on federally funded building projects' and the wider application of the National Code across the industry.[18] Most enquiries involved questions about the National Code, right of entry, the ABCC itself, freedom of association and industrial action.

2.16      In the Commissioner's Review, it is noted that union representatives have not attended six of the nine Industry Forums held by the ABCC in recent years.[19]

2.17      The committee consider the ABCC report to be apparently satisfactory in meeting reporting requirements under the Financial Management and Accountability Act 1997.

The Workplace Authority

2.18      The Workplace Authority's Annual Report 2009-10 is the agency's final annual report. From 1 July 2009 the Workplace Authority's general advisory functions, liabilities, assets and the majority of its staff transferred to the Fair Work Ombudsman. From then until 31 January 2010 the Workplace Authority was staffed by an Acting Director and a support staff member.[20]

2.19      During this period, the Workplace Authority remained operational to complete the assessment of 'collective agreements made before 1 July 2009 and individual transitional employment agreements made until 31 December 2009'. To fulfil this function, Fair Work Ombudsman staff worked for the Workplace Authority through a Memorandum of Understanding between the two agencies.[21]

2.20      At this time, a total of 36,549 workplace agreements subject to the no-disadvantage test were finalised, as were 903 workplace agreements subject to the fairness test.[22]

2.21      The committee consider the Workplace Authority's report to be apparently satisfactory in meeting reporting requirements under the Financial Management and Accountability Act 1997.

Australian Industrial Relations Commission & Australian Industrial Registry

2.22      The 2009 reports of the Australian Industrial Relations Commission (AIRC) and the Australian Industrial Registry (AIR) are the two agencies' final annual reports.

2.23      The AIRC's last day of operation was 31 December 2009. This ended a six-month transition period when, supported by staff of Fair Work Australia, AIRC worked on the modernisation of the award system and uncompleted termination of employment matters.[23] 1621 termination of employment applications were finalised during that time, and 78 per cent of those were finalised at or before conciliation.[24]

2.24      Similarly, the AIR, between 1 July 2009 and its closure on 31 December 2009, spent six months completing the award modernisation process and finalising matters commenced under the Workplace Relations Act 1996.[25] During that period, the AIR helped the AIRC and Fair Work Australia staff create 78 modern awards, resulting in a total of 122 modern awards. On 1 January 2010, these awards replaced around 1560 state and federal instruments.[26]   

2.25      The committee considers the 2009 annual reports of the AIRC and the AIR to be apparently satisfactory in meeting reporting requirements.

The Fair Work Ombudsman

2.26      The Fair Work Ombudsman's (FWO) Annual Report 2009–10 is the agency's first annual report. Established on 1 July 2009, the role of the Ombudsman is to uphold harmonious workplace relations through advice and education, and ensure compliance with workplace laws through investigation and litigation. During the reporting period, central elements of the new national workplace relations system took effect, and the FWO was responsible for explaining the system to employers and employees alike. [27]

2.27      During the year the FWO recovered $26,195,656 for 16,088 employees and finalised 98.94 per cent of complaints without resorting to legal action. FWO staff also dealt with 1,108,648 telephone calls and 22 589 written enquiries.[28]

2.28      The FWO met only three of its six performance indicators in 2009–10. It did not meet the target for completing 'investigations into complaints about breaches of federal agreements or awards within 90 days'. Only three national campaigns were held, instead of four, and 'no state campaigns were completed in Queensland'. The committee acknowledges that the FWO is a new agency and is taking steps to improve this result.[29]

External scrutiny

2.29      According to a Commonwealth Ombudsman report published in June 2010, there has been a significant reduction in the number of complaints about both Fair Work Ombudsman and its predecessor, the Workplace Ombudsman, from 665 complaints in 2007–08, to 65 in 2008–09. The report attributes this turnaround to an increased emphasis on best practice and continual improvement.[30]

2.30      The committee consider the Fair Work Ombudsman's report to be apparently satisfactory in meeting the reporting requirements under the Financial Management and Accountability Act 1997.

Fair Work Australia

2.31      Fair Work Australia's (FWA) Annual Report 2009–10 is the agency's first annual report. FWA is an independent body and its only outcome is to achieve 'simple, fair and flexible workplace relations for employees and employers through the exercise of powers to set and vary minimum wages and modern awards, facilitate collective bargaining, approve agreements and deal with disputes'.[31] During its first year, FWA worked to achieve this outcome using three central strategies: setting up systems to meet the objectives of the Fair Work Act; explaining the role and work of FWA to the public and providing timely and effective services to 'users of the workplace relations system'.[32]

2.32      There were three key performance indicators (KPI) for FWA in 2009–10: 'improve or maintain the target for the time elapsed from lodging applications to finalising conciliations in unfair dismissal applications'; 'improve or maintain the target for average time taken to list applications relating to industrial action'; and 'improve or maintain the target for the average agreement approval time'.[33] FWA achieved all its targets, especially in regards to the first KPI where the FWA surpassed its target of 34 days, achieving a median time of 24 days.[34]

Ecologically sustainable development

2.33      In its report Annual Reports (No. 2 of 2010) the committee noted the Australian Fair Pay Commission Secretariat annual report did not report against each of the requirements under the Environmental and Biodiversity Conservation Act 1999, section 516A, and encouraged Fair Work Australia to do so.[35] The committee commends Fair Work Australia for its detailed report, which discusses its recycling programs, environmental management requirements for its procurement decisions, green vehicle options and the sensor lighting installed in its Melbourne office.[36]

2.34      The committee consider Fair Work Australia's report to be apparently satisfactory in meeting the reporting requirements under the Financial Management and Accountability Act 1997.

Air Passenger Ticket Levy (Collection) Act 2001

2.35      The Report to the Commonwealth made under Section 24 of the Air Passenger Ticket Levy (Collection) Act 2001, for the period 1 April 2009 to 31 March 2010, was tabled in the Senate on 15 June 2010. It covers payments made under section 22 of the Act and the activities to which they relate.[37] The committee notes the report's statement that 'All eligible former Ansett group employees have now received 100 per cent of the SEESA payments they are entitled to and, as such, the Government does not expect any future claims will be made for payment under SEESA.'[38] 

2.36      The committee also notes the report's statement that 'Under SEESA, former Ansett group employees have now received all of their unpaid wages, annual leave, long service leave, pay in lieu of notice and at least eight weeks of their redundancy entitlement. The payment of further outstanding employee entitlements other than provided for under the Act, namely redundancy pay in excess of eight weeks, remains the responsibility of the Ansett Administrators.'[39]

2.37      The committee considers the report to be apparently satisfactory in meeting the reporting requirements.

Australian Curriculum, Assessment and Reporting Authority

2.38      During 2009–10, the Australian Curriculum, Assessment and Reporting Authority (ACARA) continued to develop the Australian Curriculum, publishing the Curriculum Design Paper (version 2) and the Curriculum Development Process (version 4). ACARA also released the draft curricula for years K-10 as well as senior secondary English, mathematics, science and history, for extensive public consultation. Elements of the draft curriculum were also trialled at 150 schools and reviewed by participating teachers through an online survey. During the end of the reporting period, ACARA was in the process of examining the feedback and making the necessary changes to the curriculum.[40]

2.39      In January 2010, ACARA's My School website was launched to considerable public interest, receiving 1,211,000 hits in the first three days. It provides detailed information on more than 9,000 Australian schools.[41]

2.40      In 2010, ACARA took responsibility for the administration of the National Assessment Program – Literacy and Numeracy (NAPLAN) and in May, delivered the tests to over one million students across Australia.[42] ACARA also made a submission to the Senate Inquiry into the Administration and Reporting of NAPLAN.[43]

2.41      The committee notes that ACARA has changed the size of the annual report from A4 to B5, as recommended in Annual Reports (No. 2 of 2010).[44]

2.42      The committee considers the ACARA annual report to be apparently satisfactory in meeting the reporting requirements under the Commonwealth Authorities and Companies Act 1997.

National Report to Parliament on Indigenous Education and Training

2.43      The committee notes once again that the National Report to Parliament on Indigenous Education and Training has not been produced since the 2006 edition was published in 2008. The committee strongly encourages DEEWR to complete the outstanding editions as soon as possible.

Comments made in the Senate

2.44      The committee is obliged, under Senate Standing Order 25(20)(d), to consider any remarks made about these reports in the Senate. The committee is satisfied that there were no comments to consider for these reports.

Bodies not presenting annual reports to the Senate

2.45      The committee is required to report to the Senate each year on whether there are any bodies not presenting annual reports to the Senate which should. The committee is satisfied that there are no such bodies.

Senator Gavin Marshall

Chair

Navigation: Previous Page | Contents | Next Page