Employers, business slam 'rushed' IR changes
Peak bodies say the government’s lack of consultation has destroyed industry confidence in the Closing Loopholes bill.
The government’s labour hire and union delegate laws have sparked outrage among the business community, with peak bodies warning the “rushed” changes are a “recipe for workplace chaos” that will “smother” job opportunities and increase costs.
Workplace Minister Tony Burke struck a crossbench deal yesterday splitting the omnibus Closing Loopholes bill to pass a controversial tranche of provisions on the final day of parliament, despite an ongoing Senate inquiry.
Council of Small Business Organisations Australia CEO Luke Achterstraat said the laws’ “rushed” passage without adequate industry consultation was an “egregious breach of trust and process”.
“The introduction of new amendments that have not been consulted on or even sighted only reinforces the uncertainty and complexity this flawed process has created for businesses of all sizes,” he said.
“Why has the government lurked these changes through unless they do not want them debated properly? It appears an admission they are damaging and against the national interest.”
In a joint statement, employer organisations representing the mining, farming, building and retail industries said the reforms had “shattered business confidence and investment”.
“Higher costs of living and job losses will be the consequence of rushed major workplace relations changes pushed through the parliament,” they said.
They said the “same job same pay” provisions, requiring labour hire workers to be paid the same as directly engaged employees, would exacerbate costs and complexity for business.
“This will hit many small businesses and drive up prices, risk jobs and comes at a time when there are already many pressures on the economy.”
Australian Chamber of Commerce and Industry CEO Andrew McKellar said the labour hire law reforms would be felt across multiple industries.
“[It] will substantially increase red tape for businesses and increase costs for those legitimate labour hire arrangements used to deal with busy times or staff shortages,” he said. “These expenses will be ultimately passed on to consumers amid a cost-of-living crisis.”
“This won’t just impact the mining sector. A range of vital industries rely on labour hire including healthcare, construction, manufacturing and hospitality.”
Mr McKellar also warned the bill afforded too much power to unions by enshrining delegates’ rights to engage with workers and represent their interests, even if they were not union members.
The changes would also compel employers to recognise and deal with delegates and pay for their training.
“The Australian economy and the jobs it creates will be subject to the whims of an increasingly aggressive trade union movement,” he said.
Australian Industry Group CEO Innes Willox said union delegates’ rights under the bill were “radical” and a “recipe for workplace chaos and disputation”.
“The changes to delegates' rights are unnecessary. They reflect an impractical, unjustified and unbalanced change in the regulation of such matters. The bill will give union delegates and officials wide-ranging powers to represent other employees, regardless of whether those workers even want to join a union. This has huge implications, from a practical perspective, for how businesses engage with their workforces,” he said.
“The sad result will be uncertainty for businesses across a raft of crucial sectors that will need to grapple with how they respond to this unworkable legislation.”
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