In the move to enterprise bargaining as the main mechanism for negotiating workplace agreements and wage increases, the ACTU has been mindful about wage outcomes as far as women workers are concerned. Jennie.George, ACTU Assistant Secretary.

Women And Enterprise Bargaining

 

Because women in general start off from an unequal position, there is an inherent risk that the further one moves away from a regulated system, the more problematic the outcomes might be.

 

It is precisely for this reason that the ACTU campaigned vigorously against the Coalition’s industrial relations policy at the last election. Their policies would have left women at the mercy of the market place and in a vulnerable situation. The recent developments in wage outcomes for women in Victoria, highlight the dangers for women in a system which relies on contracts of employment without the safeguards of awards and arbitration.

 

It is important that commentators on the new Federal system not resort to facile arguments that suggest women have been thrown into a totally deregulated wages system – that they are out on their own, facing “the law of the jungle”. This is not the case, and such statements do little to add to constructive debate. Similarly suggesting that a return to a centralised system would solve the problems for women is equally unhelpful. Firstly this is not a practical proposition, secondly it does not acknowledge that even under previously centralised wages systems, the outcomes were still unequal, largely because the overaward area was always outside the authority of the Industrial Relations Commission.

 

While the union movement has made significant advances in narrowing the gender differential in the Award area (to over 93% in 1992/1993), one of the largest areas of inequity continued to be the overaward area. But here too, significant achievements have been recorded, with the narrowing of the gap from 37% in 1979 to 59% in 1993.

 

Against this background and the persistent efforts of the ACTU to narrow the wages gap, we make it clear that we will not sit back if it turns out that women are going backwards.

 

We need to bear in mind that the system of Enterprise Bargaining that we have is unique, for it is:

 

 

• underpinned by Awards, thus providing the possibility for further gains to be made in that area;

 

 

 

• provides access to conciliation and arbitration;

 

 

 

• supported by legislative provisions which should strengthen the quest for equal pay;

 

 

 

• provides legislative backup for non-discriminatory outcomes Awards/Agreements; and

 

 

 

• provides for flat amount safety net increases for those who do not get wage increases through enterprise bargaining.

 

Recent Debate

Recent ABS statistics which showed that women’s total earnings, as a proportion of men’s, fell from 85.8% to 84.4% between 1992 and 1993 were explained, by some, as the consequence of enterprise bargaining.

 

But does a detailed analysis of the statistics actually bear out this conclusion? I suggest not.

 

A number of points need to be made about these figures, bearing in mind they include award, overaward and overtime payments.

 

 

• When overtime is excluded the fall of 1.4% is reduced to 0.8%. Men are far more likely to work overtime, but this is not the result of enterprise bargaining.

 

 

 

• When overaward payments are excluded women’s wages (derived from awards, agreements and enterprise bargaining) fell as a proportion of men’s from 93.64% to 93.04%, i.e. 0.6%.

 

 

 

• Even this 0.6% deterioration in women’s relative position can be explained other than by a shift to enterprise bargaining. In particular by the effects of the Kennett Government’s new regime. Although awards were not legally abolished until March 1993, many employers anticipated the changes.

 

 

According to the then Victorian Commissioner for Equal Opportunity, Moira Raynor, the number of “inquiries and complaints about employment related discrimination had gone up significantly in that State – by 46% in 12 months … 77% of employment complaints were made by Women … 91 Vo of complaints of victimisation were made by women”.

 

It is therefore not surprising that there was a 2.7% relative worsening of women’s relative Award earnings in Victoria in 1993. The State award system had previously covered many areas of high female employment such as the clerical, retail, hospitality and services sectors.

 

The decline in women’s relative total earnings (2.58%) and ordinary time earnings (2.33%) in Victoria, also significantly exceeded the national average. (See Attachment 1).

 

More recent data from a Victorian government report indicates that the gender pay gap in Victoria’s public sector widened by more than 13% during the Kennett Government’s first year in office (The Age, 5 October, 1994).

 

So we do need to be thorough and objective in our analysis, and not leap to conclusions, as some commentators did on the release of these figures.

Spread Of Enterprise Bargaining: ACTU Analysis

 

• Based on the ACTU’s most recent analysis of 1 500 agreements, the total number of people covered by registered Federal enterprise agreements is 1.35 million, as at August 1994.

 

 

 

• Our figures on coverage and spread compare favourably with DIR’s conservative estimate of 1.3 million workers covered by the entire 2 400 registered enterprise agreements. DIR estimates that the 1.3 million workers, represent 55% of Federal Award employees (20% of all wage and salary earners). The ACTU believes that the true extent of coverage is higher in all cases.

 

 

 

• Manufacturing continues to dominate in terms of the number of registered agreements – 1 054 – (57% of our sample) followed by Transport/Communication with 218 Agreements, and Education, Health and Community Services with 127 Agreements.

 

 

 

• However, the leading industries in terms of total coverage of employees are:

 

 

i. Transport/Communication (499 774).

ii. Government Administration and Defence (235 478).

iii. Finance and Business Services (200 222).

iv. Manufacturing (161 536).

v. Education, Health and Community Services (90 186).

vi. Wholesale/Retail Trade (85 345).

 

 

• The average unweighted wage rise since October 1991 is 4.77% (excluding increases due to the introduction of annualised salary arrangements, and productivity based wage rises which appear to be strictly conditional on the achievement of specific performance criteria).

 

 

 

• The average wage rise per agreement ranged between 4 and 4.5% from 1992 to mid 1993. Over the last 12 months, the average has risen to over 5% per agreement. It should be noted that the average duration of enterprise agreements has also been over the last two years – from under a year at the end of 1992 to over 15 months since September 1993.

 

 

 

• The highest average wage rise was 6.53% per agreement in the construction sector.

 

 

In terms of the industries with the largest number of women covered, the average wage rise have been:

 

 

Gender Issues

 

• From our analysis we can detect a clear but moderate upward trend in the average proportion of females covered by Federal enterprise agreements from 1992 to mid 1994. This is consistent with the general spread out of the metals manufacturing sector extending to public and service sectors.

 

 

In the June quarter 1992 the average female coverage was 15.73% and in the June quarter 1994 was 32.41 %.

 

 

• Over the entire period the average proportion of females covered by Federally registered agreements is 20% – 264 650 of the total 1.35 million.

 

 

 

• The industries with the highest percentage of female employment are:

 

 

 

Hospitality and Finance have coverage rates in enterprise agreements at the rate of female employment shares at 50.65% and 47.73% respectively.

 

The Education,^` Health and Community sector on the other hand has been slow to spread coverage of bargaining relative to the female share of employment (43.21 % compared to 66.3%). This could be somewhat explained by the large numbers of teachers, nurses, etc. covered by state jurisdictions.

 

 

• The ACTU has also classified average wage outcomes per agreement by industry and gender concentration (male concentrated agreements have at least 60% male coverage and female concentrated conversely).

 

 

It is perhaps a surprising result that female concentrated agreements achieve higher average wage outcomes in manufacturing (4.82% cf 4.66%), wholesale/retail trade (5.54% cf 4.10%), finance and business services (3.55% cf 3.25%), cultural and recreation services (4.45% cf 3.81 %). Males achieved better outcomes in the education, health and community services and government administration and defence.

 

What conclusions can we draw from this data?

 

i. Female access to enterprise bargaining is on a rising trend from an expectedly low base.

 

ii. Coverage across industries is strongly related to the share of female employment in that specific sector, which is a function of indsutry and occupational segregation.

iii. Female concentrated agreements enjoy higher average was outcomes in four of the six sectors for which a comparison is possible.

 

iv. Wage increases arising from enterprise bargaining are following a similar pattern as develops under a centralised system where increases are secured on an Award by Award basis – that is, those with industrial bargaining power are at the front end.

 

v. The major problem remains for those sectors of industry with little bargaining pwer – however, their position should be strengthened with the changes regarding “good faith bargaining” and the recent wages Full Bench decision which allow for arbitrated outcomes.

 

The problem is not when women get access to enterprise bargaining, but the fact that the number of women covered is below their employment share.

 

vi. Wages systems have always reflected the reality of women’s workforce status and bargaining power. No wages system, in isolation can address structural and bargaining power. No wages system, in isolation can address structural and systemic discrimination. A wages system can act either to advance or retard women’s progress to genuine equal pay.

Other Changes In The Industrial Relations System

Enterprise bargaining is, however, only one aspect of the new wages system. It is not the exclusive vehicle through wich women can secure wage increases, and hopefully impoved wage outcomes. The ACTU argued strongly for the new provisions of the Indsutrial Relations Act to ensure as best we could that the interests of those with less industrial strength in the bargaining situation are protected. In particular:

 

 

• The award safety net remains to ensure that employees have fair, enfoceable, minimum wages and conditions as a safety net underpinning direct bargaining. This means workers who do not have enterprise agreements will get safety net increases of up to $24.

 

 

 

• The process of award restructuring, which delivered large supplementary payments to many low paid female workers is continuing. Recently workers in the hotel indsutry and the textile industry ($16.70 – $31.70 in hotels) resulting from rates being properly fixed in relation to relevant classifications in other male dominated awards.

 

 

 

• The Industrial Relations Commission has been given the power to make common rule minimum wage orders for employees without proper award protection. Together with procedures making it easier to gain federal award coverage, this should assist in resolving the Victorian situation if compulsory arbitration continues, to be denied.

 

 

 

• The Commission also have been given the power to make orders for equal remuneration for work of equal value to apply in the overaward area – previously it lacked jurisdiction over overaward payments, which are a significant source of gender inequality. The ACTU intends pursuing a number of test cases early next year to test this principle.

 

 

 

• The legislation provides for awards to be reviewed for discriminatory provisions which must then be remedied.

 

 

Enterprise agreements which discriminate cannot be certified or approved by the Commission. Discrimination includes indirect discrimination.

 

 

• The legislation requires particular attention to be given to consulting with and informing women (and other disadvantaged groups) and to ensuring that their intersts are taken into account.

 

Family Leave Test Case

Social Wage – Gains For Women

Through the Accord process, the ACTU has sought to improve living standards by both wage and no wage outcomes. In recent years women in particular have benefited from improvements in the “social wage” by way of family allowances and expansion of child care places with fee relief for low and middle income earners.

 

The new child care rebate will add to women’s disposable income.

 

The $28 cash rebate for one child and $61 for two children is equivalent to a wage increase of $35 and $76 for a shop assistant and $49 and $107 for an experienced classroom teacher.

 

I am particularly thrilled by our recent agreement with the Federal Government for the introduction of a paid maternity leave benefit in next years Budget.

 

On our estimates, about 200 00 women and their families, will benefit from what will be a most significant social economic reform.

 

As can be seen by theis brief overview, the interests of women workers are very much to the fore in our indsutrial strategies. However, it is yet to be seen whether the new wages system, in its totality, acts for/against the interests of women.

 

We will continue I hope to record ongoing progress in that long quest for equal pay.

Attachment 1

ABS Distribution And Composition Of Employee Earnings And Hours (Cat. 6306.0)

Women’s award or agreed base rate of pay as a percentage of men’s award or agreed base rate of pay.

 

 

Women’s average weekly total earnings as a percentage of men’s average weekly total earnings.

 

 

Women’s average weekly ordinary time earnings as a proportion of men’s average weekly ordinary time earnings.

 

 

Women’s overaward payments as a percentage of men’s overaward payments.

 

 

Women’s award or agreed base rate of pay as a percentage of men’s award or agreed base rate of pay.

 

 

Speech By Jennie.George, ACTU Assistant Secretary, to the Industrial Relations Society Of The ACT Inc. 18 October 1994.