Commonwealth of Australia Explanatory Memoranda

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WORKPLACE RELATIONS AMENDMENT (EXTENDED PROHIBITION OF COMPULSORY UNION FEES) BILL 2005

                                    2004-2005




      THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                        HOUSE OF REPRESENTATIVES




WORKPLACE RELATIONS AMENDMENT (EXTENDED PROHIBITION OF
           COMPULSORY UNION FEES) BILL 2005




                       EXPLANATORY MEMORANDUM




(Circulated by authority of the Minister for Employment and Workplace Relations, the
                           Honourable Kevin Andrews MP)
     WORKPLACE RELATIONS AMENDMENT (EXTENDED PROHIBITION OF
                COMPULSORY UNION FEES) BILL 2005

OUTLINE


The Bill proposes to amend the freedom of association provisions of the Workplace Relations Act
1996 (WR Act) to extend the prohibition on bargaining services fee clauses to State employment
agreements to which a constitutional corporation is a party.


To achieve this, the Bill would:

 amend the definition of bargaining services to include services provided by an industrial
 association in relation to a State employment agreement, and

 provide that a provision of a State employment agreement to which a constitutional corporation
 is a party is void to the extent that it requires payment of a bargaining services fee.


FINANCIAL IMPACT STATEMENT

The proposals contained in this Bill are budget neutral.




House of Representatives                 page 1    Workplace Relations Amendment (Extended
                                                   Prohibition of Compulsory Union Fees) Bill 2005
Notes on clauses




NOTES ON CLAUSES


Clause 1- Short Title

This is a formal provision specifying the short title of the Act as the Workplace Relations
Amendment (Extended Prohibition of Compulsory Union Fees) Act 2005.


Clause 2- Commencement

This clause provides that sections 1 to 3 will commence on the day on which this Act receives the
Royal Assent. Schedule 1 will commence the day after this Act receives the Royal Assent.


Clause 3- Schedules

This clause provides that an Act that is specified in a Schedule is amended or repealed as set out
in that Schedule, and any other item in a Schedule operates according to its terms.




House of Representatives                 page 2    Workplace Relations Amendment (Extended
                                                   Prohibition of Compulsory Union Fees) Bill 2005
Schedule 1- Extending the prohibition of compulsory union fees




SCHEDULE 1- EXTENDING THE PROHIBITION OF COMPULSORY UNION FEES


Workplace Relations Act 1996


Item 1- Subsection 298B(1) (definition of bargaining services)


1.1     This item would repeal the existing definition of bargaining services and substitute an
        amended definition. The substituted definition would replicate the existing definition as
        well as extend the definition to provide that bargaining services also means services
        provided by an industrial association in relation to a State employment agreement, or a
        proposed State employment agreement.


1.2     The extended definition of bargaining services is intended to cover all aspects of the
        agreement making process in the States.


Item 2- At the end of section 298Y


1.3     This item would insert a new subsection to provide that a provision of a State employment
        agreement to which a constitutional corporation is a party is void to the extent that it
        requires payment of a bargaining services fee.


1.4     New subsection 298Y(4) would clarify the scope of the terms permits and requires as
        used in section 298Y. The definitions are the same as those contained in existing
        subsection 298Z(5).


Item 3- Application


1.5     This item would provide that proposed new subsection 298Y(3) applies to all State
        employment agreements entered into on or after the commencement of the new subsection
        298Y(3).




House of Representatives                    page 3     Workplace Relations Amendment (Extended
                                                       Prohibition of Compulsory Union Fees) Bill 2005

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