On 27 October 2022 the Federal Labor Government introduced its first tranche of changes to Australian industrial relations legislation with further changes to be introduced next year. If passed, this will result in some of the most significant employment reforms in well over a decade.
The South Australian Business Chamber, along with most national and state employer organisations, has grave concerns about the process and substance of the Secure Jobs, Better Pay Bill. We are working closely with the Australian Chamber of Commerce and Industry to influence amendments.
Andrew Kay, the South Australian Business Chamber CEO explains: “At 242 pages, the Secure Jobs, Better Pay Bill is a complex document. We are concerned it is being rushed through parliament despite the significant effect it will have on business. It is essential that we take the time to get the details right. Minister Burke has declared the new laws will be passed by 1 December 2022. This is simply not a realistic timeframe to give the Bill due consideration. Together the Australian business community will seek to shape the amendments as the Bill progresses through parliament.
“Business owners are managing immense pressures right now – with rapidly increasing interest rates, inflation, wages, and energy costs, along with continued supply chain issues and labour shortages. The last thing they need is more complex and combative industrial relations laws to navigate.”
Across Australia around 15% of workers are covered by enterprise bargaining agreements; in South Australia it is closer to 4.7% reflecting the higher proportion of small businesses in our state who do not use such agreements. The government’s proposed Single Interest Stream of the multi-employer agreements listed in the Bill poses the biggest risk. Small businesses with 14 employees or more (including casuals) will now be exposed to being included in an agreement that they and their employees do not need. For example, a South Australian small business and its employees may be forced to operate and bargain under the same conditions as an unrelated Victorian business that is dictating the terms of the agreement.
“A benefit of genuine enterprise bargaining as it stands is that businesses can be innovative, improve productivity and create a competitive edge. The South Australian Business Chamber’s concern is that the Bill provides for multi-employer bargaining which will force unwanted terms and conditions on workplaces and stifle innovation, irrespective of whether productivity gains are realised. At worst it will lead to aggressive industrial action which will increase the risk of higher unemployment, increased strike action, loss of productivity and damage to our economic security.”
Other red flags for business in the Bill include restrictions on rolling fixed-term contracts, access to arbitration for refused flexible work arrangement requests and prohibition of pay secrecy clauses.
“The Federal Labor Government and the Unions argue that getting more people onto agreements will drive up wages. Wage growth in the current economic climate will be slow and the introduction of this legislation will not speed it up.”
Keeping businesses informed of all industrial relations changes and outcomes is a top priority for South Australian Business Chamber.
Many businesses will require assistance on how these changes will impact them and what they can do to mitigate risk. For more details visit https://business-sa.com/ir-reform
Members of the South Australian Business Chamber can access expert advice on the business support hotline on 8300 0000.
