Employers forced to pay ‘go away’ money

The workplace relations system is so inflexible employers are paying “go away” money to settle unworthy claims, says the Victorian government,’

In its submission to an independent review of the federal government’s Fair Work Act, the Baillieu government says flexibility terms in modern awards are too rigid.

It also said the Fair Work Act is ineffective in dealing with pattern bargaining and contributed to a deteriorating industrial climate.

The submission said in the current uncertain economic climate, many industries not connected with the resources sector were battling tough conditions and a weak outlook.

“Workplace relations laws that enable responsive and flexible markets to promote productivity and competitive practices are key to improving economic growth and well-being,” the submission said.

“However, the response from business after two years of the FW Act suggests that the current framework does not adequately support these objectives.”

It said the act, in a number of respects, was impeding rather than promoting business flexibility and productivity.

“Employers are having to pay go away money to settle unmeritorious claims, and the general protections are too broad and uncertain in operation,” it said.

Opposition industrial relations spokesman Tim Pallas said the government’s focus on making it easier for employers to sack workers demonstrated its arrogance and indifference to the needs of Victorian families.

“It’s clear the Baillieu government doesn’t care about workers,” Mr Pallas said.

“Mr Baillieu needs to understand that rising prices and falling job security makes it even more important to protect workers.”

Last week the peak body for business said the restructuring of the economy will be more painful unless some powers are stripped from unions and given back to business.

The Australian Chamber of Commerce and Industry (ACCI) described the current workplace relations system as inflexible, reducing Australia’s global competitiveness and impeding the ability of businesses to innovate and restructure in the midst of an evolving economy.

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