Failures of leadership within the Productivity Commission allowed a culture of sexism, sexual harassment, bullying and discrimination to pervade parts of its Canberra office, a scathing review of the advisory body has found.
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Treasurer Jim Chalmers announced the agency would undergo significant workplace reform after the review, mostly focused on events prior to 2022, found a group of male staff "set and dominated the culture within the Canberra office", and were reported to have subjected staff to sexism, belittling, humiliation and verbal abuse.
"This review has found that a culture of sexism, sexual harassment and other exclusionary inappropriate behaviour including bullying, discrimination and racism existed most predominantly in pockets of the Canberra office of the Commission," an abridged version of the review, released on Friday, read.
"In recent years, it was largely perpetrated by a relatively small number of identified individuals, the majority, if not all of whom have since separated from the Commission."
Triggered by allegations of a culture of sexual harassment and sexism at the commission, the review took place between February and August this year and involved interviews with 26 current and former commission staff, and 11 written submissions.
It uncovered "a number of other inappropriate workplace behaviour incidents" beyond what was initially reported.
It was prepared by Intersection Pty Ltd, with the abridged version of the report prepared in consultation with Treasury for public release on Friday.
Treasurer Jim Chalmers said incoming commission chair Danielle Wood had agreed to implement all 23 of the report's recommendations. Ms Wood will be the first ever female chair of the Productivity Commission.
Recommendations focus on improving leadership, culture and support mechanisms, and making the complaints handling process more accountable and transparent.
"Everyone has the right to a safe and respectful workplace," Dr Chalmers said.
"I thank current and former staff for participating in the review."
Reports of women resigning, 'sick of having their intelligence undermined'
The report noted that while the Canberra office of the commission was perceived to have developed a "blokey, hyper-masculine culture", the Melbourne office was known for a "much more inclusive culture".
Another recipient told those leading the review they had observed women leaving the organisation over a period of one to two years and confidentially disclosing they were "'sick of having their intelligence undermined' and that 'their views were not received in the same way men's views were received'".
Culturally diverse women also reported feeling "unseen and unheard", and the review heard examples of people with disability not being afforded the requisite reasonable adjustments required by law to carry out their work.
One review participant said the behaviour included making overt sexist criticisms of female assistant commissioners, referring to their work as "pathetic", setting unrealistic time frames, and undermining their performance on the phone to a third party.
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This culture had been allowed by the failure of leadership to effectively manage "incidents and bad actors", the review concluded, though this "was not intentional but rather a result of leaders not being sufficiently skilled to appropriately manage and lead people and resolve conflict".
"Regardless of whether intentional or not, it represents a significant failing of management," the report read.
Action taken in response to incidents had tended to vary between extremes of "either little or no action at all" and Code of Conduct investigations, "invoking privacy restrictions and heightened concerns of procedural justice". There are and should be "middle ground options" the review found, to allow for informal and efficient handling of complaints.
'Sexist views' can have an impact, even when held by a minority: review
Participants reported a strong representation of women in senior leadership, citing 72 per cent of senior executive service positions being occupied by women.
"This strong representation of women in leadership, however, cannot be used to discount a workplace culture where sexual harassment, sexism and other inappropriate workplace behaviour occurs," the report reads.
"As noted in one submission, 'these sexist views can certainly have a negative influence, even when they are held by a minority of staff'."
Furthermore, a lack of racial, cultural and disability diversity were identified, but the commission was unable to provide reliable data in this regard. The report noted this was not uncommon in workplaces more broadly.
The incoming chair, Ms Wood, alongside commissioners and senior leaders will be required to develop a plan for the implementation of these recommendations, and the commission will report on its progress after 12 months.
The commission's Workplace Behaviour Policy will also be strengthened to clearly define sexual harassment and discrimination behaviours, while all HR personnel will be trained in trauma-informed, victim-centred responses.
A process which appropriately and sensitively supports complainants should also be established, including consideration of an external anonymous complaint handling service.
Acting chair of the Productivity Commission Alex Robson also acknowledged and accepted the recommendations on Friday, thanking staff for their cooperation throughout the process.
"The review considered serious issues and the findings are confronting and disappointing," he said.
"Importantly, the recommendations provide the Commission with an opportunity to update our practices and improve the way we work.
"The Commission has already taken steps to address some of the important issues covered in the recommendations and will have a dedicated team to drive the response to the review over the coming months."
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