A small business council meeting has erupted in acrimony, after members were blindsided by the peak body’s memorandum of understanding with unions that has paved the way for an expansion of multi-business pay bargaining.

The grassroots pushback against multi-employer pay and strike arrangements being discussed by the Albanese government underlines that Labor is unlikely to get broad business backing for sector bargaining in low-paid jobs such as childcare, aged care and cleaning.