We have seen a string of bills from this government, each launching a fresh, politically motivated attack on working people and their unions. This bill is no different. The Fair Work Laws Amendment (Proper Use of Worker Benefits) Bill 2017 (the bill) is yet another example of this government’s determination to erode workers’ rights and undermine unions in an effort to reduce the effectiveness of their collective power.
Minister Cash introduced this bill under the guise of improving good governance; the irony of this is not lost. How can we take this seriously when under Minister Cash’s watch, we have seen the head of the Australian Building and Construction Commission (ABCC) resign because he broke the law he was meant to enforce? Or when we have just seen the Registered Organisations Commission (ROC) organise raids on the Australian Workers Union (AWU) offices after a politically motivated referral by the Minister? This parliament is being used to pass legislation that enables the government to crack down on groups that oppose them and it cannot be allowed to continue.
This bill was introduced and passed in the House of Representatives within a week, avoiding proper scrutiny and showing incredible disregard for stakeholders. The tactic of rushing bills through parliament is one we have seen from this government many times. It is evident this government is not serious in its attempt to improve governance, but rather seeking to add to their stockpile of politicised weapons.
This bill will prevent workers, unions and employers from acting collectively to address industry problems and support their workforce. Worker entitlement funds protect employee benefits and entitlements and can invest in important services such as training, safety, health and wellbeing, insurance and redundancy protection. This bill will significantly impact the ability of worker entitlement funds to provide these important services. Incolink, one of the main worker entitlement funds affected by this bill, noted in their submission that the bill may prevent them from providing safety training, wellbeing services and subsidising their member’s insurances including accident, ambulance and income protection.
The bill will prevent unions from establishing and operating worker entitlement funds. As noted in the Australia Council of Trade Unions (ACTU) and the Construction, Forestry, Mining and Energy Union (CFMEU) submissions, this deprives unions of ‘their most basic right to advance the economic and industrial interests of their members’, infringes on International Labour Organisations (ILO) treaties and is incompatible with the right to freedom of association.
Significantly, the bill broadens the power of the Minister, giving unprecedented power to intervene in the operation of worker entitlement funds. Allowing the Minister to change or make fund rules may prevent worker entitlement funds from providing welfare and training services to their members. The powers of the ROC are also significantly expanded, giving them the green light to investigate people who administer worker entitlement funds but are outside a registered organisation. In less than a year since the establishment of the ROC, it is clear it is acting as the government’s attack dog, carrying out the government's politically motivated assault on unions.
As several submissions accurately point out, the provisions in this bill will place significant regulatory requirements on worker entitlement funds. In some instances, these regulations far exceed the requirements placed on corporations. For example, worker entitlement funds will become the only managed investment funds in Australia to be regulated by Australian Securities and Investment Commission (ASIC), the Australian Tax Office (ATO) and ROC.
This government is using parliament to crack down on dissent and limit the collective power of workers and their unions. Passing this bill would facilitate those efforts.