Skip to main content

Business News Releases

Test case filed in Federal Court to challenge 'unlawful outsourcing' of Qantas workers

LAW FIRM Maurice Blackburn Lawyers filed a test case for the Transport Workers Union (TWU) in the Federal Court on December 9, 2020, seeking to overturn Qantas’s decision to outsource 2,000 workers. They claim the decision is unlawful under the Fair Work Act.

The case follows Qantas’s recent announcement that it was outsourcing 2,000 ground staff and replacing them with what the TWU described as "insecure labour hire workers".

Maurice Blackburn principal Josh Bornstein, who is acting for the TWU, said the case would test whether Qantas’s recent actions in sacking workers and outsourcing their jobs was unlawful.

“This legal challenge will put outsourcing on trial,” Mr Bornstein said.

“If Qantas can replace thousands of its employees with cheaper, insecure labour hire employees then this can happen to any other employee in any Australian workplace.  

“This important test case for the TWU will determine whether Qantas’s decision to sack 2,000 workers to outsource these jobs breaches workplace laws.

“The Fair Work Act makes clear that you can’t sack employees because they are entitled to collectively bargained employment conditions. By outsourcing this work, Qantas is seeking to avoid collective bargaining under the Fair Work Act," he said.

“If the outsourcing proceeds, Qantas will no longer have to negotiate with the workers who perform the work. Instead Qantas will be able to unilaterally impose a price for the services of outsourced workers, and those outsourced workers will not be allowed to bargain with Qantas under current IR laws.

“The coronavirus pandemic has highlighted the plight of insecure labour hire and outsourced workers: they aren’t paid properly, they work in unsafe conditions and they are forced to scrounge a living working at multiple jobs. Qantas has decided to pour petrol onto that fire,” Mr Bornstein said.

“This decision is bad for workers, customers and the Australian economy. More low wage, insecure jobs means less spending and more damage to a fragile economy. The only beneficiaries are big shareholders and Qantas executives,” he said.

ends

Insurance market failure a national crisis killing small business: report

THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell has handed down her Insurance Inquiry final report, finding widespread market failure in regards to the availability and affordability of essential small business insurance products.

“Our Insurance Inquiry has revealed we are in the grip of a national crisis that is killing small businesses,” Ms Carnell said.

“The local insurance market has been hardening for years as insurers adapt their risk weightings to increasing threats. As a result, far too many Australian small businesses are on the brink of collapse because they cannot secure a range of insurance products necessary for their operation.

“Small businesses have told us they have either been denied insurance outright or their premiums have as much as tripled in just a few years, effectively pricing them out of the market," Ms Carnell said.

“Hundreds of small businesses have told my office they face closure if insurance remains unavailable to them. In reality, it means thousands of small businesses are likely impacted and there could be dire consequences for the Australian economy if left unaddressed.”

The final report makes a suite of recommendations designed to rebalance risks taken on by insurers and make small business insurance products more accessible.

A major recommendation included in the report is to expand the Australian Reinsurance Pool Corporation to provide reinsurance for all natural disasters on commercial property insurance.

“Following the devastating bushfires we saw earlier this year, many small businesses are struggling to get insurance for natural disasters,” Ms Carnell said.

“This is severely impacting small businesses such as rural pubs and regional accommodation businesses that say natural disaster coverage is inaccessible, extraordinarily costly or they have been refused coverage outright.

“In the wake of the September 11 terrorist attack in the US, the government set up the Australian Reinsurance Pool Corporation, in response to a withdrawal of terrorism insurance by insurers and reinsurers," she said.

“This should be expanded to cover small businesses in the event of a significant natural disaster by providing a vital increase in reinsurance options for commercial insurers.”

Ms Carnell said the insurance industry urgently required a mandatory Code of Practice, recommending the Australian Financial Complaints Authority (AFCA) be given additional powers to deliver dispute resolution and enforcement.

“Self-regulation in the insurance industry has failed,” Ms Carnell said.

“As it stands the insurance industry’s service and practice standards are set by voluntary codes of practice that are rarely enforced and not taken seriously by the industry.”

The report highlights a lack of availability of public liability and professional indemnity insurance, pin-pointing the unlimited nature of injury claims and potential for large damages as a key factor.

“Public liability insurance has become almost impossible for small businesses to obtain, particularly those that offer recreational activities such as caravan parks, quad bike tours or jet boating to name a few,” Ms Carnell said.

“Our report recommends Australia follow the lead of New Zealand, which has applied statutory caps on liability for personal injury. The risk environment for public liability litigation can only change through government intervention and the current framework of fault-based injury compensation creates uncontrollable risks for insurers and small businesses. It’s clear we need a civil liability framework that actually works.

“The government should also implement the Productivity Commission’s recommendation to roll out a no-fault National Injury Insurance Scheme (NIIS) to cover lifetime care for catastrophic injuries. It’s been nine years since the Productivity Commission released its Report into Disability Care and Support and yet the NIIS is still under consideration, much to the detriment of the small business sector.”

Ms Carnell thanked the 800-plus small businesses that took the time to complete the insurance survey, describing their feedback as both insightful and concerning.

“We’ve had an overwhelming response from the small business community, many of whom told us that insurance is one of their largest expenses and a lot are under-insured,” Ms Carnell said.

“We also heard reports of poor conduct by insurers, including very late notice of renewal terms and price hikes, effectively putting the small business in the position of accepting the terms or being uninsured.

“For a significant number of small businesses, insurance has become a daily stressor and a major reason for considering closure.

“In addition to the response we had from small businesses, we also welcome the 20-plus submissions we received from industry stakeholders, which helped in the development of this comprehensive report.

“Ultimately insurance is a necessity for small businesses to operate, which is why it is vital these products are fit-for-purpose and accessible so they are protected when things go wrong.” 

www.asbfeo.gov.aqu

ends

Industry calls for consistency in caravan park insurance 

AUSTRALIA'S peak caravan and camping industry group has welcomed the handing down of the Insurance Inquiry Report December 2020 by Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Kate Carnell,

The Caravan Industry Association of Australia has worked closely with its members and industry organisations to strongly advocate on the challenges that caravan park operators are facing in accessing and affording public liability and natural disaster insurance. 

Caravan Industry Association of Australia CEO, Stuart Lamont, said these challenges had "put many business operators against the ropes" following the devastating bushfire season and COVID-19 travel restrictions.

“The Ombudsman’s acknowledgment of market failure and the need to provide certainty to small business operators is a welcomed and accurate summary of the current insurance sector,” Mr Lamont said.

"Caravan Park operators, who are fully regulated by relevant state and federal legislation regarding work health and safety, are not seeking to avoid their responsibility regarding public liability and natural disaster management.  They are, however, seeking a consistent framework that ensures their significant investments and liability are able to be protected.

“The recommendations by the Ombudsman are a step in the right direction to support the caravan park industry," Mr :Lamont said. "Specifically, expanding the Australian Reinsurance Pool to cover all-natural disasters and adopting statutory caps on public liability will provide ongoing confidenceto operators that they will be able to find and be covered by adequate policy.”

www.caravanindustry.com.au

ends

Resources sector supports Brisbane lockdown

QUEENSLAND'S resources sector is working with the Queensland Government in support of the COVID-19 three-day lockdown announced by the Premier today. 

Queensland Resources Council (QRC) chief executive Ian Macfarlane said the resources sector remained committed to keeping its workers, their families and those Queenslanders living in mining regions safe. 

The resources sector is managing the impact on production as companies cease fly-in-fly-out (FIFO) movements out of Greater Brisbane to regional Queensland during the lockdown. As well, resource companies are ensuring their regional worksites operate under strict COVID-safe plans and are isolating workers who have travelled from Greater Brisbane since January 2 from the local community they work in.

"FIFO workers already on site will be allowed to travel to and from work under strict COVID protocols, which have previously proven to be very effective,” Mr Macfarlane said.

“Those Greater Brisbane based workers who have been in the areas identified as being visited by the diagnosed person since 2 January are being immediately tested and isolated until the test results are confirmed.”

The decision by companies to cease FIFO from Greater Brisbane during the three-day lockdown is also in response to concerns from regional centres regarding Brisbane-based workers travelling to those areas during the lockdown period, and as an added precaution, the sector will also resume health checks prior to FIFO workers boarding flights from Brisbane airport to regional centres. 

“QRC has re-confirmed that the resources sector retains its status as an essential industry during the lockdown and the protocols used for workers in previous hotspot declarations will be followed,” Mr Macfarlane said. 

“We will stay in close contact with the government and make any necessary changes required to these protocols. 

“The QRC has asked all workers to immediately operate at a heightened level of COVID awareness, particularly social distancing, hand hygiene and ceasing all non-essential social contact or group gatherings. 

“The resources sector is essential to Queensland’s economy and has demonstrated its resilience these past nine months to keep the lights on, people in work, and the money flowing.

“You can count on us to keep Queenslanders safe and our economy ticking over.” 

More information can be found on the Queensland Government website.

ends

 

Drive tourism to get a welcome boost in Tasmania

CARAVAN Industry Association of Australia has applauded the Federal Government for its announcement this morningof a $6million extension to the Bass Strait Passenger Vehicle Equalisation Scheme (BSPVES), making it free for passengers to bring their car on the Spirit of Tasmania from March to June 2021.

Those travelling with a caravan or motorhome will also receive the average $240 return saving for their vehicle. The 2020 year has not been kind to business operators in Tasmania, and the summer season continues to be a disappointment for many.  Recent occupancy numbers have shown that caravanning and camping is underperforming all other states in the country at a time when caravan parks should be overflowing, with forward bookings also soft.

“Across Australia we continue to witness a V-shaped recovery in the caravan and camping sector, however Bass Strait has continued to put Tasmanian operators at a disadvantage in what is a very competitive domestic tourism market,” said Stuart Lamont, CEO of Caravan Industry Association of Australia.

Mr Lamont said, "This announcement could not have come soon enough, and while the Tasmanian Tourism Voucher Schemewas great to encourage locals to travel, there is only so much we can rely on the local market to keep Tassie caravan parks open.” 

Making access cheaper for passengers coming from the mainland will be an incredible incentive and will go a long way to kick-starting the recovery of the sector in Tasmania while supporting many regional communities right across the state, he said.

www.caravanindustry.com.au

ends



“We know that those arriving via the Spirit of Tasmania stay longer, spend more and disperse further than other visitors to the state, so it is vitally important to stimulate this portion of the travelling public, and to recoup some of the cancellations incurred due to border restrictions throughout 2020.” Mr Lamont continued. 

NSW taxpayers 'stung up to $4000 a day' as Treasurer outsources policy making

NEW SOUTH WALES Treasurer Dominic Perrottet's move to outsource Treasury work to KPMG is a waste of money and resources, according to the Public Service Association (PSA).

A report in The Sydney Morning Herald this morning revealed the Treasurer would pay consultancy firm KPMG $5.5 million to reform the state's stamp duty scheme.

“Once again the NSW Government is only happy to waste millions of taxpayer dollars on consultants when the expertise already exists in NSW Treasury many times over," PSA general secretary Stewart Little said.

Taxpayers could be paying as much as $4000 a day for this work, under the government's own procurement policy. The lowest rate for an analyst is $1200 a day.

"When the NSW Government froze the wages of public sector workers in 2020 they were told that everyone was tightening their belts. Treasurer Perrottet promised the government would go on a hiring spree - it seems he was only thinking of consultants.

"NSW has the best and brightest policymakers in the country. From those working around the clock in NSW Health, to the Service NSW and Treasury officials who've made sure people across the state get the support they need," Mr Little said.

"The level of expertise isn't easily matched, and they're ready to do the work but instead vital functions of the government are being outsourced to consultants at exorbitant rates. The Treasurer needs to do the maths again, because this doesn't add up."

ends

Australia fails to designate seafarers as 'key workers' in line with International Maritime Organisation resolutions

THE International Maritime Organisation (IMO) passed several resolutions in December 2020, specifically addressing the need for seafarers, and other marine personnel, to be designated as key workers.

Australia is a notable omission from the cohort of 45 IMO member states who have already determined seafarers to be key workers.

International Transport Workers Federation president and Maritime Union of Australia national secretary Paddy Crumlin said, “Australia must act immediately to align itself with international efforts, led by organisations like the IMO and ITF, to designate seafarers as key workers providing an essential service, and facilitate the safe and unhindered movement of seafarers for embarking and disembarking a vessel, accessing shore leave, and when necessary, access to shore-based medical treatment.

“While the COVID-19 pandemic continues to wreak havoc on the health of people and communities across the world, the outlook for seafarers becomes increasingly more desperate by the day.

“The despair of this crisis cannot be understated. Over 400,000 seafarers internationally are held captive on their ships, and an equal number are prevented from travelling to relieve these desperate workers due to the global and national inconsistencies in travel restrictions. 

“Australian seafarers are effectively locked out of jurisdictions where they are engaged in transport operations domestically, and the interconnection of global and national trade.

“It is vital that attention be paid to Australia’s reliance on essential workers in the maritime transport chain to maintain the continuous supply of essential goods that Australian communities rely on and that the Morrison Government act immediately to address the failed policy settings which continue to exacerbate this crisis for Australian and international seafarers.”

The IMO circular regarding the designation of seafarers as key workers is available here.

ends

Pandemic's implications for Australia's foreign affairs, defence and trade

FEDERAL Parliament is releasing the report of its inquiry into the implications of the COVID-19 pandemic for Australia’s foreign affairs, defence and trade policy.

The Committee found that the lessons from COVID-19 were not primarily about health.

The Chair of the Committee, Senator David Fawcett said, "The behaviour of nation states in response to COVID-19 has called into question some assumptions about the willingness of nations to support the global rules-based order. These assumptions have underpinned many aspects of Australia’s foreign affairs, defence and trade in recent decades."

Senator Fawcett stressed that “any decrease in support for the norms of the rule-based order negatively affects collaboration and conflict resolution between nation states, as well as the efficacy of commercial relationships between companies".

The Committee concluded that the pandemic revealed vulnerabilities in Australia’s security and critical national systems “caused by supply chains that rely on just-in-time supply from the global market, particularly where companies are subject to extrajudicial and coercive direction from foreign governments".

Senator Fawcett said because of the increased risks identified in the Strategic Update 2020, Australia must have a timely and strategic, whole-of-government response and that “returning to ‘business as usual’ is not an option”.

Senator Fawcett said," Unexpected, sustained disruption due to another pandemic or grey-zone, coercive or military actions by state actors could degrade if not disable one or more of Australia’s critical national systems.”

The Committee recommended the Australian Government change procurement rules to partner with Australian industry sectors which provide priority enablers to critical national systems. This partnership should be through the use of procurement to build and sustain sovereign capability, not just by offering one-off grants.

The Committee concluded Australia also required more investment and diplomatic effort to increase Australia’s resilience through trusted and transparent partnerships with like-minded nations.

ends

Intelligence Committee to inquire into extremist movements and radicalism in Australia

THE Parliamentary Joint Committee on Intelligence and Security has commenced a review into the extremist movements and radicalism in Australia. The inquiry was referred to the Committee by Peter Dutton MP, Minister for Home Affairs.

A full terms of reference is available online at the Committee’s webpage.

The Chair, Andrew Hastie MP said, “The Committee will be examining the nature and extent of, and threat posed by, extremist movements and persons holding extremist views in Australia.”

The Deputy Chair, Anthony Byrne MP said, “The Committee will, as always, conduct this inquiry in a bi-partisan manner and with a focus on the security of all Australians.”

Submissions are requested by Friday February 12, 2021. Further information about making a submission to a parliamentary committee inquiry is available here. 

Further information about making a submission to a committee inquiry can be found at this link.

ends

APRA and ASIC reports tabled in the House

THE House of Representatives Standing Committee on Economics recently tabled its reports into the annual reports of ASIC and APRA.

Committee Chair Tim Wilson said the work of the committee in scrutinising Australia’s key financial regulators remains vital in light of the findings of the Royal Commission, the COVID-19 pandemic and more recently, the standing aside of the chair of ASIC.

"The COVID-19 pandemic has created unprecedented disruption and uncertainty in the financial sector. Now, more than ever, it is essential to maintain strong prudential regulation and ensure fair and transparent dealings to safeguard financial stability and consumer trust in the financial sector," Mr Wilson said.

"The economic comeback post COVID-19 brings its own challenges. It is essential that governments, regulators, and financial institutions continue to be proactive and work together as the immediacy of the crisis fades and the hard work of economic comeback continues.

"Both ASIC and APRA have responded quickly and appropriately to the pandemic, unfortunately ASIC’s recent expenses scandal has overshadowed its efforts. The Committee takes its role of the oversight of ASIC very seriously, and will closely follow the outcome of the independent review into expenses of ASIC executives paid by the Australian tax payer," Mr Wilson said.

"Coupled with the data errors in the SMSF factsheets on the MoneySmart website that remain unacknowledged, it is difficult to say that there is as much confidence in ASIC today as there was at the same time last year and ASIC should seek to address these issues as a matter of urgency because they go to the heart of their capacity and internal processes."

Further information on these inquiries are available on the committee’s website.

ends

Politicising Insurance Inquiry not helping small business: Ombudsman

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said she was disappointed by a Labor Party media statement that inappropriately politicised her Insurance Inquiry final report.

Ms Carnell said although the report recommendrd a number of reforms that require government action, it was in no way critical of the Federal Government.

“I’m very disappointed by the Labor Party’s media statement regarding our Insurance Inquiry because it detracts from the real issues that are impacting small businesses every day,” Ms Carnell said.

“Our Inquiry found widespread market failure in regards to the availability and affordability of essential small business insurance products. The report does not politicise this issue and I believe it is inappropriate to do so.

“The fact is the local insurance market has been hardening for years, with insurers adapting their risk weightings to increasing threats. The natural disasters, such as the catastrophic bushfires that happened earlier this year, have brought this issue to a head," Ms Carnell said.

“Our comprehensive report made a suite of recommendations designed to rebalance the risks taken on by insurers and make small business insurance produces more accessible.

“This is a critical issue that is sending far too many small businesses to the wall and what they really need right now is solutions – not a political bung fight.

“For the sake of Australian small businesses, I hope that all sides of politics can work together on this issue to ensure small businesses have access to the insurance products that are essential for their operation.”

www.asbfeo.gov.au

ends

More Articles …