Mandatory Safety Net for Nominated Sectors

Context

The Victorian Government considers that the Federal Government’s Work Choices legislation, introduced on 27 March 2006, will impact adversely on the working conditions of employees in Victoria.

In response, the Victorian Government is seeking to establish a safety net of fair minimum employment standards to protect workers in nominated vulnerable sectors.

The Ethical Purchasing Policy – Mandatory Safety Net for Nominated Sectors has been developed to assist in achieving this objective, and provides a mandatory safety net of fair employment standards for employees in nominated vulnerable sectors who are engaged in the provision of goods or services to Victorian Government public sector entities, including general government (budget and non-budget sector), public financial corporations and public non-financial corporations (Victorian Government Entities).

Key Requirements

The Policy requires that suppliers of goods or services to Victorian Government Entities in nominated vulnerable sectors provide their on-shore employees with terms and conditions of employment which are no less favourable than those provided prior to the introduction of Work Choices.

To this end, all suppliers and sub-contractors from nominated vulnerable sectors involved in the provision of goods or services to Victorian Government Entities must (where the value of the goods or services to be provided exceed specified thresholds):

• provide terms and conditions of engagement that are not, on balance, less favourable than those provided by the relevant federal award(s) as at 26 March 2006 and no less favourable than those provided by the Long Service Leave Act 1992 (Vic), the Outworkers (Improved Protection) Act 2003 (Vic) and other nominated legislation; and
• incorporate any increases or improvements from determinations of the Australian Fair Pay Commission into the terms and conditions of engagement

for all on-shore employees engaged in the provision of the goods or services.

1. Nominated vulnerable sectors
The nominated vulnerable sectors to which this Policy currently applies are security services, catering, cleaning services and the textiles, clothing and footwear industries. Additional sectors where employment standards are considered to be vulnerable to erosion may be nominated for inclusion over time.

2. Where the Policy will apply
The Policy applies to the purchase of goods or services by Victorian Government Entities in the nominated vulnerable sectors valued in excess of the public tender threshold, with the exception being the textiles, clothing and footwear industries where the Policy will apply irrespective of value.

In each case where the Policy applies, it will also extend to all sub-contractors and their on-shore employees (being any employees performing work in Australia) engaged in the provision of the relevant goods or services to Victorian Government Entities (irrespective of the value of the sub-contracting arrangement and whether it exists directly with the supplier).

3. How the Policy will be applied
All short listed tenderers will be required to submit a Mandatory Safety Net Statement confirming their (and all sub-contractors’) compliance with this Policy. The successful tenderer(s) will be required to maintain compliance with the Policy for the duration of the contract.

Standard provisions regarding the application of the Policy are to be incorporated into Request for Tender, or equivalent tender documentation relating to the provision of goods or services in the nominated vulnerable sectors. Standard contractual terms approved by the Department of Treasury and Finance (DTF) are to be incorporated into all contracts entered into with a successful tenderer for the provision of goods or services where the Policy applies.

Contractual terms are to permit the termination of the contract if a supplier does not satisfy the obligations under the Policy during the period of the contract.

4. Exceptional circumstances
A departure from compliance with this Policy can only be considered in exceptional circumstances.

Requests for departures from the Policy will be, in the first instance, directed to the Victorian Government Procurement Group of DTF, and Industrial Relations Victoria (IRV).

Other Requirements

Nil

Related VGPB Policy and DTF Guidelines

Obtaining Quotes for purchases up to $150000* Policy
Open and Selective Tendering for purchases in excess of $150000* Policy
Terms and conditions of Contract Policy
Tender Processes and Tender Documents Policy
Procurement and Ethical Employment (Standard) Policy

Related DTF Templates and Forms

Request For Tender (Parts A-E) - Standing Offer Agreements (545 KB 2.DOC)
Request For Tender (Parts A-E) - One-off Supply (598 KB 2.DOC)

Links to relevant Policy websites

IRV, in consultation with DTF, is preparing EPP (Mandatory Safety Net for Nominated Sectors) Guidelines to assist both Victorian Government Entities and suppliers in implementing the requirements of this Policy.

Industrial relations advice regarding nominated vulnerable sectors
Industrial Relations Victoria
Department of Business & Innovation
http://www.irv.vic.gov.au

Information on applicable federal awards
Job Watch – Employment Rights Legal Centre
http://www.jobwatch.org.au/
email: jobwatch@jobwatch.org.au

Occupation Health and Safety advice
Victorian Workcover Authority (Worksafe)
http://www.worksafe.vic.gov.au

Workplace Rights Advocate
http://www.workplacerights.vic.gov.au
Mandatory Safety Net for Nominated Sectors (EPP-MSN) Guidelines for Victorian Government Entities

Version Control Information

Version Number	1
Release Date	December 2002
Further Information	Strategy and Policy, Government Services Division, Department of Treasury and Finance
Phone	(+613) 868 32944
Email	vgpb@dtf.vic.gov.au