Bill Shorten will retain his oversight of the insurance sector following his appointment today as Federal Employment and Workplace Relations Minister in a Federal ministry reshuffle.

He will be replaced as Assistant Treasurer by Mark Arbib, but will retain his responsibilities for financial services and superannuation – a portfolio which is overseeing a series of industry reforms on issues as diverse as flood insurance and the future of financial advice.

The Cabinet-level appointment is seen as recognition of Mr Shorten’s ability to negotiate at many levels of Australian industry – an ability that has been on display since he began his financial services reform campaigns at the start of this year.

The former union leader’s experience as National Secretary of the Australian Workers Union and his highly regarded negotiation skills will be used by the Gillard government to deal with rising controversy over its Fair Work legislation.

Apart from inheriting Mr Shorten’s old post as Assistant Treasurer, Senator Arbib will also run the small business portfolio formerly managed by one-time Assistant Treasurer Nick Sherry, who today announced his resignation from the ministry and his decision not to contest his Senate seat at the next election.