Government praised for fixed-term contract approach

Australian Higher Education Industrial Association

The peak body for industrial relations in the higher education sector has outlined three broad components for making universities sustainable.

The Executive Director of the Australian Higher Education Industrial Association (AHEIA), Craig Laughton, said there needed to be:

better informed decision making by governments legislating in areas that effect the sector;
less pursuit of ideology in enterprise bargaining; and
harmonising funding with modes of employment.

“This is in the context of at least 25 of Australia’s universities in deficit in 2023, compared with just seven in 2017,” Mr Laughton said.

He said that’s why a just announced decision of the federal government to delay implementation of new laws around the use of fixed-term employment contracts in universities is welcome and very important.

“Present legislation could add millions to the operating costs of each university. Furthermore, they will cost jobs and already there is evidence that some universities are paring back employment numbers based on what is being proposed by the federal government,” Mr Laughton said.

“The government has listened to briefings and submissions from AHEIA and others and been prepared to reconsider and we hope arrive at a point that will meet the needs of the higher education workforce and universities.”

He said implementation of changes to fixed-term contract provisions now will not occur until November 1, 2025.

The Department of Employment and Workplace Relations (DEWR) has advised that the Fair Work Amendment (Fixed Term Contracts – Exceptions Measures) Regulations 2024 have been made.

It said the Regulations introduce three new time-limited exceptions for the charities and not-for-profit sector, medical and health research sector and public hospitals. The Regulations will further repeal the exception for non-government funded philanthropic entities and the live performance industry, whilst extending the higher education regulation until 1 November 2025.

Further, DEWR advised that given the issues around certainty of funding and the interaction with the fixed-term contract limitations, the Regulations are a transitional measure to allow time for a longer term solution within the workplace relations system and more broadly. The Regulations are temporary and will expire by 1 November 2025, or sooner if an alternate mechanism, such as modern award variation is in place.

“The department has strongly encouraged parties to work together in good faith to reach a longer term solution. That is exactly what AHEIA will do,” Mr Laughton said.

“We’re advised an independent statutory review of the Fair Work Amendment (Secure Jobs, Better Pay) Act 2022 has started. It will provide an opportunity to consider the impact of the reforms in the Act, including fixed-term contracts. The Review Panel will take submissions and evidence from interested parties prior to 29 November 2024,” he said.

Mr Laughton said it will be important for all to approach the opportunity with an open mind, rather than ideology.

He said that will provide the best chance of arriving at a solution where universities can be sustainable through harmonising funding with employment models and practices and an employer of choice.

Ends

1 November 2024

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