Employer groups call to redo IR reforms

Major employer organisations around the country have united to push the federal government to redraft what they say are poorly drafted proposed industrial relations reforms.

Employment and Workplace Relations Minister Tony Burke introduced the Closing Loopholes Bill to parliament last month, which aimed to amend the Fair Work Act 2009.

A group of 11 employer organisations released a joint statement today, describing the proposed IR changes as a smokescreen to bad policy.

The 11 organisations area Business Council of Australia, Australian Chamber of Commerce and Industry, Australian Energy Producers, Australian Industry Group, Council of Small Business Organisations Australia, Master Builders Australia, Minerals Council of Australia, National Farmers Federation, Recruitment, Consulting & Staffing Association, Restaurant and Catering Industry Association, and the Australian Resources Energy and Employer Association.

“Australia’s leading employer organisations continue to urge the government to go back to the drawing board on its proposed workplace relations reforms, rather than tinkering at the edges of poorly drafted legislation,” the statement said.

“What we are seeing now is simply an attempt at trying to patch a sinking boat with a post-it note.”

“We are unconvinced that reported changes by the government will fix what is a fundamentally flawed Bill.

“We are yet to see any detail and there remains significant unanswered questions regarding what is reportedly proposed by the government.

“We encourage the government to listen to the genuine concerns of businesses large and small, that the proposed Fair Work Amendment (Closing the Loopholes) Bill 2023 will ultimately drive up business costs, which will hit Australian households in the middle of a cost-of-living crisis.”

Other organisations have voiced their concerns on the proposed IR reforms.

In his second reading of the Bill, Mr Burke said many Australians were not receiving the full benefit of the previously passed legislation to improve job security and wages because of loopholes that allowed pay and conditions to be undercut.

“For these workers the minimum standards in awards and enterprise agreements are words on a page, with little relevance to their daily lives,” he said in parliament.

If passed, the Closing Loopholes Bill will introduce a new definition of “casual employee”, new criminal offences for intentional wage theft and industrial manslaughter and allowing the Fair Work Commission to set minimum standards for some gig economy and road transport industry workers.

Gig economy workers, which covers ride share and food delivery drivers, do not classify as employees.

Other proposed reforms include preventing agreement wages of workers under labour hire services from being undercut.

The group’s statement said there was insufficient evidence to support such drastic and unwarranted legislative changes.

“This extremely complex legislation covers issues from casual employment, to labour hire, independent contractors and subcontractors, gig workers and increased union powers, impacting businesses of all sizes right across the economy,” the group said.

“The increased red tape and significant compliance costs that will be borne by small businesses has not been modelled or properly considered.

“Ad hoc amendments will simply add to the complexity, not address it, and will make it harder for businesses to employ workers.”