Business, unions unite for paid pandemic leave

Unions and employers have joined forces in an extraordinary alliance to call on the federal government to urgently introduce and fund paid pandemic leave for all workers to combat the spread of COVID-19.

The Business Council of Australia and the Australian Council of Trade Unions urged Industrial Relations Minister Christian Porter in a letter on Monday to quickly introduce a two-week paid pandemic leave scheme that supports workers who self-isolate because of the virus.

Business Council of Australia chief executive Jennifer Westacott says maintaining the current bargaining system “benefits no one”.  Alex Ellinghausen

The groups want the federal government, along with state governments, to reimburse businesses for the cost of the entitlement, similar to JobKeeper or paid parental leave.

The alliance was declared as The Australian Financial Review reported that the Morrison government wants the Victorian government to help fund income support measures for the state, including paid pandemic leave.

In the letter, ACTU secretary Sally McManus and BCA chief executive Jennifer Westacott agree the entitlement is necessary for public health reasons.

“Paid pandemic leave is now an essential public health measure that will combat the recent spike in workplace transmission in Victoria,” they said.

“Regrettably, recent events in Victoria have demonstrated that there are insufficient measures in place to enable workers who should not be attending their workplaces to stay home.”

Further, while many businesses have paid pandemic leave policies “not all are able to do so given the cost, especially in the current circumstances where workers are often required to isolate and get tested on multiple occasions”.

The proposal would involve the federal government amending the Fair Work Act to incorporate an entitlement similar to the two-weeks paid pandemic leave for aged care granted recently by the workplace tribunal.

The federal government would fund the measure and “where necessary” relevant state governments.

The letter acknowledged the Victorian government had recently introduced its own scheme but said few were using it.

“Unfortunately, the mechanisms available to state governments to effectively implement and administer such a scheme are inadequate and consequently we have seen minimal take up over recent weeks.”

They said that unions and businesses have shown “an extraordinary level of cooperation” and wanted to “jointly discuss this scheme with you and work together to suppress this wave of infections”.

The paid pandemic leave for aged care workers, which was opposed by employers due to funding concerns, is only available to permanent employees and casuals who work regular shifts.

It entitles them to two weeks’ paid leave every time they are required to self-isolate for the next three months.

Australian Chamber of Commerce and Industry chief executive James Pearson argued government should pay the paid pandemic leave itself as reimbursements would be another burden for small business to bear.

“If pandemic payments are legislated and financially backed by the government, they need to come directly from the government, be it state or federal, and not through the payroll system,” he said.

“Even with reimbursement, small businesses can’t afford to keep writing cheques. ”