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2010-2011-2012-2013
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
THE SENATE
Fair Trade (Workers' Rights) Bill 2013
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator John Madigan, DLP Senator for Victoria)
Fair Trade (Workers Rights) Bill 2013
OUTLINE
The Fair Trade (Workers Rights) Bill 2013 is a Bill which seeks to promote international labour
standards and human rights. The International Labour Organisation (ILO) speaks about labour
standards as being about "the development of people as human beings". Often, International labour
standards are seen as stunting or costing business the opportunity to grow and prosper. However,
the ILO has made it clear that improved Labour Standards often leads to greater productivity and
economic performance, which is a benefit for both workers and employers.
This Bill has been written in the spirit of recognising the basic ILO principle that "fair labour
practices set out in international labour standards and applied through a national legal system
ensure an efficient and stable labour market for workers and employers alike."
The Bill does not seek to impede international trade; rather it seeks to ensure that those countries
that wish to benefit from entering into a trade agreement with Australia include minimum standards
about workers' rights in their domestic law.
Not only does the Bill promote international labour standards with our trading partners, it also
increases Australian business competitiveness by creating a more level playing field. The Bill does
this by ensuring that minimum standards are included in the domestic law of countries which we
negotiate trade agreements with. These standards include: freedom of association, the right to
organise and collective bargain, freedom from discrimination, the elimination of the worst forms of
child labour, the forty hour week, occupational health and safety standards, a minimum wage and
the conventions promoting weekly rest. These are basic international standards that should be
respected by all employers in all countries.
Australian employers fulfil and exceed the expectations of international labour standards in
countless conventions and covenants. Our employers pay superannuation, provide compulsory
workers compensation insurance, provide a safe workplace, a decent basic wage and have thrust
upon them a number of other expenses which make Australian workplaces a great places to work.
However, our workers are competing with those who aren't afforded a fraction of the conditions
our workers are. By allowing this situation to continue, we are not standing in solidarity with
overseas workers, and we are negligently allowing man-made employment and humanitarian
atrocities to occur, whilst we take no responsibility and take no pro-active steps to challenge
international conditions for all those who are engaged in the global division of labour.
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FINANCIAL IMPACT STATEMENT
The Bill has no foreseeable negative financial impact.
NOTES ON CLAUSES
Part 1
Clause 1: Short title
This clause provides that the Bill when passed may be cited as the Fair Trade (Workers' Rights) Act
2013.
Clause 2: Commencement
This clause provides that the Bill will commence on the day it receives Royal Assent.
Clause 3: Object
This clause provides that the purpose of the Act is to encourage Australia's trading partners to ensure
that workers in their country are protected by certain internationally accepted minimum standards
about workers' rights.
Clause 4: Definitions
This clause outlines where the various definitions of phrases can be found in the Bill.
Part 2
Clause 5: Trade Agreements and domestic law of parties must include minimum standards
about workers' rights
This clause outlines how and in what instances the Commonwealth must, through the Minister,
include minimum standards about workers rights in a trade agreement.
Clause 6: Minimum wage fixing recommendation
This clause outlines the objective of including the ILO's Minimum Wage recommendation as a
requirement in Australia's Trade Agreements. It states that the other country or countries must include
standards in their domestic law that are at least equal to the standards in the minimum wage fixing
recommendation or provide a written explanation to the Parliament why an exemption has been made.
Clause 7: Meaning of Trade Agreement
This clause outlines the definition of a Trade Agreement as being "an international agreement that the
Commonwealth has, or will, enter into with the government of another country, or with the
governments of a group of countries, that will abolish or decrease tariffs (or other import charges) that
are levied or charged by Australia at the time goods are imported into Australia." It also explains the
different ways that Australia can enter into a trade agreement with another country.
Clause 8: Meaning of minimum standards about workers' rights
This clause outlines the eight ILO Conventions which are used as a benchmark to determine what the
minimum standards of workers' rights are.
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STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Fair Trade (Workers' Rights) Bill 2013
This Bill is compatible with the human rights and freedoms recognised or declared in the international
instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
This Bill seeks to encourage Australia's trading partners to ensure that workers in their country are
protected by certain internationally accepted minimum standards about workers' rights.
Human rights implications
The Bill engages all human rights conventions mentioned in the Human Rights (Parliamentary
Scrutiny) Act 2011 by promoting the enforcement of human rights conveyed in the similar
International Labor Conventions:
(a) the Convention concerning Freedom of Association and Protection of the Right to
Organise done at San Francisco on 9 July 1948;
See below.
(b) the Convention concerning the Application of the Principles of the Right to Organise
and to Bargain Collectively done at Geneva on 1 July 1949;
These two conventions directly correlate with Article 22 of the International Covenant on Civil and
Political Rights which states: "Everyone shall have the right to freedom of association with others,
including the right to form and join trade unions for the protection of his interests."
(c) the Convention concerning Discrimination in Respect of Employment and
Occupation done at Geneva on 25 June 1958;
This convention asserts Article 11 of the Convention on the Elimination of All Forms of
Discrimination Against Women which asserts that: "States Parties shall take all appropriate measures
to eliminate discrimination against women in the field of employment in order to ensure, on a basis of
equality of men and women, the same rights..."
(d) the Convention concerning the Prohibition and Immediate Action for the
Elimination of the Worst Forms of Child Labour done at Geneva on 17 June 1999;
This convention supports the Convention on the Rights of the Child which is listed in the Human
Rights (Parliamentary Scrutiny) Act 2011, particularly Article 32 which reads: "States Parties
recognize the right of the child to be protected from economic exploitation and from performing any
work that is likely to be hazardous or to interfere with the child's education, or to be harmful to the
child's health or physical, mental, spiritual, moral or social development."
(e) the Convention concerning the Reduction of Hours of Work to Forty a Week done at
Geneva on 22 June 1935;
This convention engages Article 7 of the International Covenant on Civil and Political Rights which
states that: "...the present Covenant recognize the right of everyone to the enjoyment of just and
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favourable conditions of work which ensure... rest, leisure and reasonable limitation of working hours
and periodic holidays with pay, as well as remuneration for public holidays."
(f) the Convention concerning Occupational Safety and Health and the Working
Environment done at Geneva on 22 June 1981;
This convention engages Article 7 of the International Covenant on Civil and Political Rights which
calls upon Governments to ensure safe and healthy work conditions.
(g) the Convention concerning the Application of the Weekly Rest in Industrial
Undertakings done at Geneva on 18 November 1921;
See below.
(h) the Convention concerning Weekly Rest in Commerce and Offices done at Geneva
on 26 June 1957.
These conventions engage Article 7 of the International Covenant on Civil and Political Rights which
calls upon the government to ensure there is adequate rest and leisure time for workers.
Conclusion
The Bill is therefore compatible with Human Rights, as it doesn't remove any, but rather it promotes
them.
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