LeftClick publishes here a copy of that leaked report.
Below - the leaked government document revealed by Gillard in Parliament which suggests that the government aims to:
• Reduce award coverage from 19 per cent to 10 per cent of all employees as the result of increased take up of agreement making.
• Increase AWA coverage from around 5 per cent of all ernployees to 20 per cent.
• Reduce the percentage of agreements made through pattern bargaining from 31 per cent in 2006 to 10 per cent .
1 Statement of Requirement
The Commonwealth of Australia (the 'Commonwealth') represented by the Department of Employment and Workplace Relations (the 'Department') is seeking quotes from suitably qualified organisations in relation to the provision of economic consultancy services (the 'Services').
The consultant will be expected to:
1. Measure the economic benefits of building upon recent workplace relations reforms.
2. Examine the impact of these changes on key economic aggregates such as productivity and OOP, and labour market variables such as wages, employment and unemployment Analysis can include any regional and industry impacts in Australia. Consultants are required to keep confidential the nature of the subject matter being considered in the tender.
1.1 The Department's Requirements
The Department requires the consultant to conduct the following tasks. Determine the likely economic benefits of,
a. Universal national system coverage • Under this scenario, State governments would transfer their industrial
relations power to the Commonwealth creating a truly national workplace relations system. This would see coverage under the federal system rise from 85 per cent to 100 per cent. The benefits from this transfer would include
reduced red tape and less confusion for businesses.
b. Coverage of industrial instruments
• Award coverage falls from 19 per cent to 10 per cent of all employees as the result of increased take up of agreement making. This would reduce the number of employees affected by the complexity and inflexibility of the
award system.
• AWA coverage increases from around 5 per cent of all ernployees to 20 per cent. This further enhances the flexibility of the workplace relations system and allows employers and employees to tailor agreements to suit their individual needs.
a Reduced pattern bargaining
• A reduction in the percentage of agreements made through pattern bargaining from 31 per cent in 2006 to 10 per cent This will allow more agreements to address firm-specific conditions and opportunities for productivity
improvements. r -
d. Increased labour force participation
• The impact of lifting Australia's labour force participation rate for 15 to 64 year olds from around 76.0 per cent to the New Zealand level of around 78.0 per cent.
e. Increased employment prospects for vulnerable groups
• The impact of the changes mentioned in (a) to (d) on the employment prospects of those groups with a marginal attachment to the labour market including persons with parenting responsibilities, persons with a disability and young people.
1.1.1 Required Outcomes
The report will be completed within a reasonable timeline to allow the consultant time to consider the issues involved and conduct relevant economic modelling.
A written Draft Report will be delivered two week prior to the deadline for the Final Report to ensure that sufficient development of the report has been made and allow for any modifications and enhancements. The Supplier will then have two weeks to take into consideration mutually agreed changes before presenting the
Final Report.
1,1.4 Project Deliverables
Methodology and Assumptions The successful Supplier will present a rigorous, achievable methodology for
estimating the economic effects of building on Workplace Relations reform. The Supplier will be expected to use a robust and reputable macro-economic model to estimate the impact of these effects on the target economic and
employment variables identified.
The successful consultant could also use a sectoral macro-economic model of the Australian economy to generate estimates at the industry, national and regional level.
Deliverables:
The Department will require the consultant to provide the deliverables detailed below:
(a) Draft report: This report will provide written analysis and results of modelling of the impact of building on Workplace Relations reform. This report will allow the Department to make an assessment as to whether sufficient progress has been made to ensure the delivery of the Final Report.
(b) Final report: This report will reflect and incorporate any required amendments, clarification or additional analysis that may emanate following the Draft report. It will be provided to the Department for approval. The Final Report may be subject to peer review, and should be suitable for publication.
(c) Data: The consultant will be required to provide any data generated through the Contract to the Department.
The reports and data described above will be provided as hard copy (2 copies) and • electronically in a format or formats specified by the Department. The reports may be published by the Department, at the Department's discretion. If so, the consultant's role will be acknowledged.
1.1.7 Project Management
Regular contact will take place between the Department and the consultant as required to ensure that the Final Report provides all relevant information.
1.1.8 Quoted Prices
The supplier will need to provide a full break down of costs involved in completing the project - including GST - such as human resources involved in completing the economic modelling, travel and other sundry allowances and any seminars or presentations of the results of the project.
1.2 Timetable
1.2,1 The contracted work is to start on 14 May 2007 and be completed by 13 July2007. See the timetable below.
Closing date for responses to RFT 11 May 2007
Engagement of Consultant 14 May 2007
Progress Report provided to the Department 22 June 2007
Final Report provided to the Department 13 July 2007
1 Statement of Requirement
The Commonwealth of Australia (the 'Commonwealth') represented by the Department of Employment and Workplace Relations (the 'Department') is seeking quotes from suitably qualified organisations in relation to the
provision of economic consultancy services (the 'Services').
The consultant will be expected to:
1. Measure the economic costs of returning to a more heavily regulated labour market
2. Examine the impact of these changes on key economic aggregates such as productivity and GDP, and labour market variables such as wages, employment and unemployment.
Analysis can include any regional and industry impacts in Australia.
Consultants are required to keep confidential the nature of the subject matter being
considered in the tender,
1.1 The Department's Requirements
The Department requires the consultant to conduct the following tasks.
Determine the likely economic costs of:
a. Unfair Dismissal
• Removing the exemption from unfair dismissal laws for businesses with less than 100 employees and returning to the former unfair dismissal system with no exemptions.
b. Coverage of Industrial Instruments
• Increasing award coverage from 19 per cent of all employees (as recorded in May 2006) to 30 per cent of all employees. Economic costs should include an assessment of the impact of the inflexibility and complexity of awards.
• Removing access to Australian Workplace Agreements (AWAs) which currently account for around 5 per cent of all employees. The cost includes the loss of flexibility and the ability to negotiate mutually beneficial outcomes
that are currently available in AWAs. Regional and industry differences are expected to be substantial -for example the impaqt on prpductiyityjn the Mining industry in Western Australia.
c. Industrial Action
• Increasing the number of working days lost due to industrial action from current near record lows of 6.0 working days lost per 1,000 employees to levels achieved in the 1990s. For example, 104-6 working days lost per 1,000
employees in the December quarter 1992.
d. Bargaining
• Reintroducing a formal approval/certification process for all workplace agreements.
• Re-introducing scope for pattern bargaining and/or industry wide bargaining as opposed to having collective and individual agreements that are able to take account of firm-specific circumstances. The percentage of Certified
Agreements found to be 'pattern bargains' could return from 31 per cent in 2006 to the 2003 level achieved of 51 per cent.
e. Labour force participation
• The impact of a reduction in the labour force participation rate for people of working age (15 to 64 years) from the current level of around 76.0 per cent to the levels recorded in the mid 1990s of around 74.0 per cent. Lower
participation rates could be recorded if labour market reforms and programmes such as the Welfare to Work reforms are modified or removed. The reforms include more stringent requirements for income support recipients to
actively seek work.
f. Ernpjgyment of vulnerable groups
• The impact of re-regulating the labour market on the employment prospects of those groups with a marginal attachment to the labour market, including persons with parenting responsibilities, persons with a disability, and young people.
1.1.1 Required Outcomes
The report will be completed within a reasonable timeline to allow the consultant time to consider the issues Involved and conduct relevant economic modelling. A written Draft Report will be delivered two week prior to the deadline
for the Final Report to ensure that sufficient development of the report has been made and allow for any modifications and enhancements. The Supplier will then have two weeks to take into consideration mutually agreed changes before presenting the Final Report.
1.1.4 Project Deliverables
Methodology and Assumptions.
The successful Supplier will present a rigorous, achievable methodology for estimating the economic effects of re-regulation of the labour market.
The Supplier will be expected to use a robust and reputable macro-economic model to estimate the impact of these effects on the target economic and employment variables identified.
The successful consultant could also use a sectoral macro-economic model of the Australian economy to generate estimates at the industry, national and regional level.
Deliverables:
The Department will require the consultant to provide the deliverables detailed below:
(a) Draft report: This report will provide written analysis and results of modelling of the impact of re-regulation of the labour market. This report will allow the Department to make an assessment as to whether sufficient progress has been made to ensure the delivery of-the Final Report ,: ^ ,
(b) Final report: This report will reflect and incorporate any required amendments, clarification or additional analysis that may emanate following the
Draft report. It will be provided to the Department for approval. The Final Report may be subject to peer review, and should be suitable for publication.
(c) Data: The consultant will be required to provide any data generated through the Contract to the Department The reports and data described above will be provided as hard copy (2 copies) and electronically in a format or formats specified by the Department. The reports may be published by the Department, at the Department's discretion. If so, the consultant's role will be acknowledged.
1.1.7 Project Management
Regular contact will take place between the Department and the consultant as required to ensure that the Final Report provides all relevant information.
1.1.8 Quoted Prices
The supplier will need to provide a full break down of costs involved in completing the project - including GST - such as human resources involved in completing the economic modelling, travel and other sundry allowances and any seminars or presentations of the results of the project.
1.2 Timetable
1.2.1 The contracted work is to start on 14 May 2007 and be completed by 13 July 2007. See the timetable below.
Closing date for responses to RFT . 11 May 2007
Engagement of Consultant 14 May 2007
Progress Report provided to the Department 22 June 2007
Final Report provided to the Department 13 July 2007
2 General Matters
2.1 Disclaimer and Selection of successful Quote
2.1.1 Although certain information is contained in this RFQ. you must make your own independent assessment and investigations regarding the subject matter of the RFQ. Neither the Commonwealth, its employees nor its contractors:
(a) makes any representations or warranties as to the accuracy, reliability or completeness of the information; nor
(b) has any liability under the law or otherwise arising from the information, the Quote process or any activity associated with them.
2.1.2 You are responsible for all costs incurred in the preparation and lodgement of your Quote and In respect of any discussions, negotiations, enquiries or any work undertaken by you after the Quote has been submitted. The
Department is not liable for any costs or compensation in relation to these matters, regardless of whether the Department terminates, varies or suspends the RFQ process or takes any other action under this RFQ.
2.1.3 This RFQ is expressly not a contract between the Commonwealth and you, nor an offer to contract. Nothing in this RFQ, or any conduct or statement made before or after the issue of this RFQ is to be construed so as to give
rise to any contractual obligations, express or implied, or any obligations in equity. The Commonwealth makes no binding representations or undertakings as to how the quotation process will be conducted.
