The Chamber of Commerce and Industry of WA has warned proposed changes to the national awards system will be a financial and regulatory setback for a large number of businesses across the state.
The draft new rules, released today by the Australian Industrial Relations Commission, propose substantial changes to the conditions and rates of pay awarded to workers across a broad range of industries.
The changes are not consistent with the Government's pledge that the creation of modern awards "is not intended to ... increase costs for employers."
The Australian Industrial Relations Commission today released drafts on 14 priority awards for reform in the mining, retail, hospitality, higher education and racing sectors.
The new awards would provide redundancy pay for most people employed in small businesses and an independent umpire for dispute resolution.
They would also include employee consultation rules for employers to discuss significant workplace changes and set mandatory wages and conditions across all industries from 2010.
CCI is concerned about the impact the proposed new award conditions will have on business confidence, and the WA economy more broadly.
CCI's preliminary examination of the draft award arrangements has revealed the cost to business and industry would be immense.
CCI is concerned the hospitality sector will be hit hard by the changes. The wages bill for all workers, from wait staff to chefs, will rise significantly, undermining the ability of businesses to run successful and profitable operations.
Penalty rates for working weekends and public holidays are earmarked to increase by as much as 50 per cent under the proposed changes.
For example, an employer would have to pay a casual waitperson nearly an extra $60 for working a public holiday, while a chef working the same shift would be paid nearly an extra $70.
Multiply these figures across an entire business employing a number of staff and the financial impact is dramatic.
CCI is disappointed the Australian Industrial Relations Commission has given business and industry only one month to respond to the draft changes.
