THE INTERIM recommendations of a Parliamentary Inquiry into Juukan Gorge have confirmed HESTA’s view that without an independent review of agreements between mining companies and Traditional Owners, investors cannot be confident this clear financial risk is being appropriately managed.

The Joint Standing Committee on Northern Australia’s Interim Report recommended all mining companies operating in WA conduct independent reviews of their agreements with Traditional Owners, and publicly commit to not using ‘gag orders’ to prevent Traditional Owners protecting their rights.

“The work of this Parliamentary Inquiry has shone an invaluable light on how mining companies are negotiating agreements and engaging with Traditional Owners,” HESTA CEO Debby Blakey said.

“The finding that the tragedy at Juukan Gorge was ‘inevitable’ given current mining industry practices and inadequate legal and regulatory frameworks is extremely concerning to investors.

“Mining companies failing to negotiate fairly and in good faith with Traditional Owners represents a clear systemic risk to investors. Only an industry-wide independent review will provide certainty to investors that this risk is properly managed.”

Ms Blakey said HESTA would continue working with other large global investors to engage with Australian mining companies on how they are responding to the Inquiry’s recommendations.

“The inescapable findings of the Inquiry are that Aboriginal heritage sites remain vulnerable to destruction. It would be unacceptable to investors that boards of mining companies are not actively and transparently seeking to understand their exposure to this risk,” Ms Blakey said.

“After all that has occurred at Rio, the boards of mining companies need to show investors that they have appropriate oversight and effective governance frameworks in place to ensure respectful, fair and ongoing engagement with Traditional Owners.”

The Inquiry’s recommendations that Rio Tinto pay restitution and implement a moratorium on mining across the Juukan Gorge area highlight to companies and investors alike the financial costs from actions that damage a company’s social licence to operate.

Ms Blakey said mining companies could start by publicly stating they will not enforce gag orders in the current agreements, allowing Traditional Owners to raise heritage concerns.

She said HESTA strongly supported the Inquiry’s recommendation that companies with current ‘Section 18’ permissions halt all operations unless it can be established and verified that there is current, free, prior and informed consent obtained from Traditional Owners.

“This Inquiry’s important work is ongoing and represents a significant turning point in how the mining industry and Government manage heritage issues in this country,” Ms Blakey said.

“I’d like to commend all Committee members for their work on this issue during this very difficult time, and particularly Chair Warren Entsch.

“The comprehensive and bipartisan findings of this Inquiry have revealed glaring gaps in the protection of Indigenous Heritage, and we have a responsibility to all Australians and the world to ensure the tragedy of Juukan Gorge never happens again,” Ms Blakey said.

About HESTA

HESTA is the largest superannuation fund dedicated to Australia’s health and community services sector. An industry fund that’s run only to benefit members, HESTA now has over 870,000 members (more than 80% are women) and manages more than $56 billion in assets invested around the world. As a responsible steward of their members’ retirement savings, HESTA focuses on achieving strong, sustainable, long-term returns while making a positive difference to the world members will retire into. HESTA is the acronym for Health Employees Superannuation Trust Australia.

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A NEW parliamentary report highlights the importance of faster rail investment in Australia’s economic recovery and proposes a fairer and more sustainable funding approach.

John Alexander OAM MP, Chair of the House of Representatives Infrastructure, Transport and Cities Committee, last month tabled the report for the committee’s inquiry into options for financing faster rail.

"Before COVID-19, this committee saw funding faster rail using value capture as an opportunity. Today, it’s an imperative," Mr Alexander said.

Value capture is a means by which governments can more fairly fund part, or all, of the costs of rail infrastructure projects and provide relief for taxpayers now and in the future, the report said.

"When government funded infrastructure is clearly linked to significant property value uplifts, or rezoning, governments have a duty to taxpayers to secure just, equitable and fair portions of these increases in property values," Mr Alexander said.

The report makes three recommendations which focus on value capture and value sharing, addressing the missed opportunities where property values rise dramatically as a result of taxpayer funded rail infrastructure.

"During the inquiry the committee considered the issue of fairness: Is it fair for the taxpayer to fund infrastructure that creates great wealth for landowners, speculators and developers? Should the taxpayer receive a return when their money is invested? Is it fair that we leave future generations to pay for our spending today?" Mr Alexander said.

The report builds on the committee’s work in the 45^th Parliament. In two previous reports, the committee recommended a value capture model be designed and utilised in Australia, with the Australian Government, state and territory, and locals governments working together in a coordinated approach to value capture.

The report and further information about the inquiry is available on the committee’s website.

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THE Parliament's Parliament’s Northern Australia Committee Chair, Warren Entsch, has made it clear about the ramifications of the an interim report of the inquiry into the destruction of Indigenous heritage sites at Juukan Gorge, WA.

"Never again can we allow the destruction, the devastation and the vandalism of cultural sites as has occurred with the Juukan Gorge—never again!" he said.

The report, simply titled Never Again, highlights the disparity in power between Indigenous peoples and industry in the protection of Indigenous heritage, and the serious failings of legislation designed to protect Indigenous heritage and promote native title. Mr Entsch noted there were a lot of factors that contributed to the destruction of the Juukan Gorge shelters.

"The PKKP (Puutu Kunti Kurrama and Pinikura peoples) faced a perfect storm, with no support or protection from anywhere," Mr Entsch said. "They were let down by Rio Tinto, the Western Australian Government, the Australian Government, their own lawyers, and Native Title law.

"In making these recommendations today, the Committee and I want to break that cycle. The neglect of the PKKP people stops here."

The report makes seven recommendations focusing on improving relations between industry and Aboriginal and Torres Strait Islander peoples and improving the legislative framework protecting Indigenous heritage.

Among other things, it urges Rio Tinto to commit to:

• A moratorium on mining in the Juukan Gorge area;
• Rehabilitation of the Juukan Gorge site;
• A review of all agreements with Traditional Owners;
• A stay of all actions under s.18 of the Aboriginal Heritage Act 1972;
• A voluntary moratorium on s.18 applications;
• A return of all artefacts to the Puutu Kunti Kurrama and Pinikura peoples.

Other sections of the mining industry are urged to make similar commitments, while the Western Australian Government is urged to pursue urgent reform of current State laws. The Committee also recommended on urgent review of the Aboriginal and Torres Strait Island Heritage Protection Act 1984, and changes to its application and administration in the meantime.

Mr Entsch emphasised that the report was an interim report and that the inquiry would continue.

"The scale of the inquiry, the sheer volume of evidence that the Committee has received, and continues to receive, and the serious constraints posed by COVID-19, means that the Committee felt unable to do full justice to the inquiry in so short a time,": Mr Entsch said.

"As a result, the Committee has chosen to table this interim report addressing its findings to date and setting forth recommendations which will be built upon next year (2021)."

A copy of the interim report can be obtained from the Committee’s website or from the secretariat on (02) 6277 4162.

Further details of the inquiry, including terms of reference, can be found on the Committee’s website.

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A TRANSPORT Department proposal to allow foreign-flagged ships to compete for freight transport work will threatens the viability of the interstate rail freight sector and put thousands of jobs at risk in regional Australia.

The Rail Tram and Bus Union (RTBU) has blown the whistle on the proposal, which was quietly recommended in a recent departmental discussion paper.

The discussion paper proposed a series of reforms that would lead to greater use of overseas-based ships for the transport of domestic freight, including: Removal of five-voyage minimum for temporary licences; automatic approval of temporary licence applications where there is no approved general licence route/cargo nomination; and removal of tolerance limits for temporary licence voyages for routes or cargo types where there are no general licence holder route/cargo nominations.

RTBU national secretary, Mark Diamond, called for the Deputy Prime Minister and Transport Minister, Michael McCormack, to quash the reforms and pull his department into line.

“These reforms will decimate jobs, many of which are concentrated in regional Australia in towns including Kalgoorlie, Port Augusta, Albury, Parkes, Narrabri and Moree," Mr Diamond said.

“Up to 10,000 direct and indirect jobs are at risk if foreign-flagged vessels with third world labour practices are allowed to undercut Australian conditions. This will be a sucker punch to Australian workers.

“The trade union movement has repeatedly exposed exploitation on flag of convenience vessels. It is astounding to think the Commonwealth Department of Transport would consider giving these shonks a stronger foothold in the Australian market.

“This proposal would drain money from the Australian economy at precisely the worst time. Foreign owned shipping operators do not pay Australian wages or Australian taxes, and do not operate to Australian safety standards.  Their profits are repatriated overseas.

“We would also likely see an increase to rail freight pricing due to the reduced rail volumes. Freight rail requires critical mass in order to recover its fixed operational costs," Mr Diamond said.

“The Deputy Prime Minister has made much of his government’s Inland Rail project, describing it as a 1,700km ‘corridor of commerce’ that will underpin regional economies.

“But now his own department could turn that project into a massive white elephant."

RTBU submission to the Federal Government.

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OPTIONAL preferential voting, the introduction of the Robson Rotation for House of Representatives ballot papers and an entirely new Electoral Act have all been recommended by the Parliament’s Electoral Matters Committee.

Tabling a report into the 2019 Federal Election, Committee Chair Senator James McGrath said Australia’s reputation as a successful democracy was upheld by the delivery of a transparent and robust election outcome.

“Australia is one of the oldest most successful democracies in the world,” Senator McGrath said.

“But that has not come through chance, or good luck - our democracy works because over a century, generations of people, paid and unpaid, have worked to make it so through blood, sweat and tears.

“Our democracy works because countless Australians have made the ultimate sacrifice to protect the freedoms inherent in democracy.

“Our elections are a fundamental cornerstone to our democracy and they should not only be fair, open and transparent, they should be seen to be so.

“As technology evolves and society changes, we must ensure our electoral processes are robust and voters are empowered.

“There is action that can be taken to increase fairness and protect our electoral system. The Committee’s recommendations will empower the voter, increase transparency, establish further safeguards, and create consistency.”

The Committee recommended:

• To maximise voter choice compulsory preferential voting should be replaced by optional preferential voting.
• To increase fairness and to reduce the luck of the ballot draw while minimising the so-called donkey vote, the Robson Rotation of candidates on the ballot paper should be introduced for the House of Representatives in tandem.
• Voter ID should be introduced for all voters with savings measures similar to provisional votes. Likewise, all electoral enrolments, whether new or changes should require proof of ID.
• The pre poll voting period should be reduced from three weeks to a maximum of two weeks. Voters who choose to vote early should be required to explain why they are unable to attend on the day rather than it being a matter of convenience.
• The Electoral Act should be completely rewritten to make it fit for purpose. A new offence of political violence, both physical and verbal should be introduced.
• The rules governing the use of Party names should be tightened to restrict the use of existing party names by new political entrants.

“Parliament should also commence a conversation about whether the Parliament should be increased in size,” Senator McGrath said.

“Part of the dialogue should consider whether the nexus between the Senate and the House of Representatives should be reformed.”

“In addition, consideration should be given to changing the term of the House of Representatives from three years to four years.”

Full report here.

ALMOST HALFof the super system may could be exempt from a crucial government performance test that would reveal to workers if their fund is a dud, new analysis from Industry Super Australia (ISA) has revealed.

An eyewatering estimated $881 billion in retirement savings belonging to 8.4 million member accounts or about 47 percent of the APRA regulated system could be exempt from the government’s new Your Future, Your Super performance benchmarks. And there is no timeframe for performance tests to be applied to three quarters of the nearly $1.13 trillion in assets not in MySuper. 

“If the government doesn’t apply new performance tests to all super funds and products, millions of Australian workers may never find out that their savings are being eaten away by a dud investment," ISA chief executive Bernie Dean said.

“Every worker, no matter if they choose a retail or industry fund product, deserves to know how their super fund stacks up so that they can make an informed decision about switching to a better fund.

“We applaud government moves to tackle underperformance – which can be a huge drain on worker savings – but to be meaningful the new tests should apply to whole system, and certainly to the for-profit products in the Choice sector, which a number of government reviews have found are rife with poor performing products.

“When it comes to protecting worker savings, we can’t have any carve outs or loopholes that would leave workers stuck in underperforming products," he said.

 “Leaving much of the Choice sector and administration fees out of the performance benchmarks means the government is giving many for profit funds a licence to continue to fee gouge on their members’ savings.”   

Failing the critical benchmark test means members are warned about a fund’s poor performance, a second consecutive strike bars the fund from accepting new members.

Among those currently out of the test are notorious dud investment products whose poor performance and fee gouging Banking Royal Commissioner Kenneth Hayne savaged in his final report.

The government will only initially test the performance of MySuper and “trustee-directed products” in the Choice sector, excluding hundreds of products and investment offerings, Mr Dean said.

Trustee-directed products is not a term currently defined in legislation, but it would capture only Choice products that invest in multiple asset classes and the trustee has 'control' of the investment strategy.

ISA analysis of the SuperRatings database could only identify $254 billion in trustee-directed products – just 22 percent of assets in the Choice sector. This is despite the Productivity Commission finding that the Choice sector was littered with fee gougers and poor performing super products.

Excluded are most platform investment options offered by third parties, single-asset investment classes and all pension products.

At a Senate inquiry, superannuation assistant minister Jane Hume confirmed the government had no timeframe to extend the performance benchmark beyond trustee-directed products.

The government’s proposal leaves almost 70 percent – 6.5 million accounts holding $425 billion in assets –of the big bank dominated retail super fund sector out of scope.

Investment offerings and products from retail super fund giants BT, MLC, ANZ, AMP, Colonial First State could all be excused. Cash only asset options which the Banking Royal Commission uncovered retail products that had negative investment returns, are also exempt.

About 634,000 industry fund accounts and $98 billion in assets are out of scope – only about 6 percent of industry fund members and 14 percent of assets under management.  

It is vital this benchmark is extended to the entire system before the government proceeds with its plan to staple members to their first super fund, or else members could be stuck in a dud fund for life.

Mr Dean said Industry Super Australia supports the government’s Your Future, Your Super package and its crucial performance benchmark tool, but is concerned unless important improvements are made, members could end up worse off. ISA supports sensible changes in members’ best interests including:

Ø  Net return as a performance benchmark rather than net investment return

Ø  Forced closures of chronically underperforming funds

Ø  Expanded coverage to ensure all funds and products – including the Choice sector – must also pass the benchmark tests, with no carve outs

Ø  Sequencing of reforms to ensure performance measures are implemented before stapling

Source: ISA analysis of APRA Annual Superannuation Bulletin, June 2019 and SuperRatings Fund Crediting Rate Survey, June 2019

Notes: Estimates as of June 2019, does not include defined benefit assets or accounts

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THE Australian Workers’ Union has moved to close the industrial loophole that allows farms to pay vulnerable workers a fraction of the award rate.

The union has applied to the Fair Work Commission to amend the Horticulture Award to guarantee that every worker on every farm is entitled to take home the minimum casual rate of pay – $24.80 per hour.

Currently, farms can dodge this minimum rate through ‘piecework’ arrangements, under which workers are paid depending on the quantity of fruit picked or vegetables harvested. Manipulation of this system has led to widespread incidences of workers getting paid as little as $3 per hour, as revealed most recently in the McKell Institute’s landmark Blue Harvest report.

Under the AWU’s proposed amendment, piecework arrangements would still be permitted, but every worker would be guaranteed the award rate as a floor.

“After a slew of investigations, inquiries and media exposes over a decade, we know for a fact that worker exploitation, worker abuse, and even modern slavery is rife on Australian farms,”  AWU National Secretary Daniel Walton said.

“There is no reason we have to accept this shameful reality. Australia was founded on the principle that if you do a fair day’s work you should be guaranteed a fair day’s pay. There is no reason we should consider farms to be an exception to this rule in 2020.

“As things stand fruit and veg employers don’t even record how many hours people are working. That’s madness. The hours should be logged and people should be paid accordingly.

“The farm employers lobby is fond of claiming that fruit pickers on piecework arrangements make more than the minimum wage. If that’s true then they should have zero problem with supporting our amendment," he said.

“The ethical farmers who employ people on decent rates will face no disadvantage from our amendment. It is only the wage thieves, the scammers, and the shonks who have anything to fear.

“Shearers, station hands, cane cutters, and others on piecework rates already have this protection. We need to extend it to fruit and veg pickers," Mr Walton said.

“The reason farmers are finding it hard to attract workers to fruit picking currently is because people don’t want to be ripped off and exploited. If we are successful in amending the Horticulture Award every person working on an Australian farm will be guaranteed a basic award rate. This will help drive down youth unemployment in our regions which we know is at catastrophic highs currently.

“We expect broad support for this amendment because it also makes economic sense to rural communities. Workers who earn more, spend more in local shops and supermarkets. They pay income tax and GST. They rent houses and build lives in regional areas.”

The call-for-reform is supported by bushfire survivor Natalie Trigwell, who has thrown her support behind the claim after she was paid just $15 a day for backbreaking work on a blueberry plantation.

“I was working six to eight hours a day in the heat and getting a ridiculously low wage that you couldn’t live on,” she said.

“There are decent farmers out there who are doing the right thing but we need to root out the bad guys and make sure every fruit and veg picker is paid a fair wage. Right now there’s no way I’d encourage anyone to take up this work, but if we ended the current piece rates award arrangements that would be a game changer.”

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ILLEGAL exploitation of migrants worsened during the COVID-19 pandemic, with the largest ever audit of foreign job ads revealing almost nine-in-10 (88%) offered wage rates below the award minimum.

Wage Theft: The shadow market is the third audit of foreign job ads by Unions NSW and reveals the prevalence of advertising wages below the legal minimum is up from 77 percent in 2017 and 70 percent in 2018.

The 2020 audit analysed 3000 job ads in Chinese, Korean, Vietnamese, Nepalese, Spanish and Portuguese. Of those, 2,189 (72%) indicated a rate of pay, of which 88 percent were below the national legal minimum award rates.

The report also found:

●      Construction was the worst industry for migrant wage theft with 97.3% of jobs advertised below the minimum wage. This was followed by cleaning at 91.8%, hair and beauty at 87.9%, fast food at 87.5%, retail at 87.1%, hospitality at 87%, clerical at 84.3% and transport at 66.7%

●      Advertisements in Vietnamese were most often below the minimum wage at 90.7%. This was followed by 88.3% of Korean ads, 87.9% of Chinese, 86.3% of Nepalese, 83.9% of Portuguese and 76.4% of Spanish ads.

“There are more than one million temporary migrants in Australia who can’t fully enforce their workplace rights due to their visa status,” said Mark Morey, secretary of Unions NSW. “So many migrants were already exploited, and without JobKeeper or JobSeeker it got much worse during the crisis.

“Without income support, tens of thousands of migrants were made more vulnerable. Clearly, some unscrupulous bosses seized on the opportunity of the COVID pandemic to rip off vulnerable migrants even further.

“This is a problem that can be fixed. Australia is among the world’s wealthiest nations yet we have allowed an apartheid to emerge in our workplaces. If you are a permanent resident you have workplace rights, but if you are temporary you are vulnerable to wage theft," Mr Morey said.

“The 20 hour a week restriction on work for international students must be abolished as a matter of urgency. It’s almost as if this rule has been deliberately crafted to push international students into exploitation in a cash economy.

“The Fair Work Ombudman is also a shambles. It doesn’t understand its brief and doesn’t have the resources to stamp out exploitation. Instead, resources should be directed to peak union and business groups to conduct legal wage compliance.

“It should also become a legal requirement to advertise the minimum rate of pay in every job advertisement. This would create a powerful baseline expectation for wages.”

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