Labor to introduce IR bill with pledge to ‘get wages moving’

Workers will be promised a new law to lift wages in a federal move that is fuelling industry alarm about rules that could empower unions to negotiate pay deals across multiple employers, along with changes to help close the gender pay gap.

Moving faster than industry groups expected, the federal government will put the draft law to parliament next week with a pledge to “get wages moving” amid a growing political row over the way inflation is eroding real wages.

Employment Minister Tony Burke gained support in federal cabinet on Tuesday for the “Secure Jobs, Better Pay Bill”.Credit: Alex Ellinghausen

The plan for multi-employer bargaining acts on a call from ACTU secretary Sally McManus to let unions negotiate better pay deals for workers across dozens or even hundreds of employers in a single industry.

Employment Minister Tony Burke gained support in federal cabinet on Tuesday for the “Secure Jobs, Better Pay Bill” and confirmed measures such as making gender equity a central objective of the Fair Work Act, but he is yet to confirm the proposal for industry-wide bargaining.

“Women should not be paid less than men – it’s that simple. That’s why gender pay equity will be at the centre of our workplace reforms,” he said in a statement on Tuesday.

Employers are mobilising against the idea of multi-employer bargaining out of concern at the negotiating power that could be handed to the unions and fears about whether the law could allow industry-wide strikes to force better pay deals from multiple employers.

“I think there’s a kind of unseemly rush on this,” Australian Chamber of Commerce and Industry chief Andrew McKellar said.

“We’ve never seen multi-employer bargaining as a priority to fix the bargaining system in Australia.

“At this point, I don’t think the consultation process has anywhere near run its course.”

The government confirmed four elements of the workplace bill to act on key Labor promises in the federal election campaign.

The first is to ban pay secrecy clauses so that companies cannot prohibit staff from talking about their pay if they want to, something Burke has promised over the past year as a way to stop behaviour that he believes can discriminate against women.

The second is to make gender equity an objective of the Fair Work Act, giving the industrial umpire a principle that could influence its decisions on pay and conditions.

The third is to establish new “expert panels” at the Fair Work Commission to address the gender pay gap in the care sector, which is dominated by women and which the government believes is undervalued and underpaid. Another panel will advise the commission on pay equity.

The fourth will give the Fair Work Commission greater authority to order pay increases for workers in sectors dominated by female workers through an “equal remuneration principle” that will consider gender when assessing the value of work.

Treasurer Jim Chalmers has acknowledged the growing pressure on household budgets from rising prices when inflation is eating into real wages, making action on pay a key goal for the government despite the pushback from industry about the added costs for employers.

Ai Group chief executive Innes Willox expressed concern at the speed of the government’s move after plans were reported in The Australian Financial Review on Tuesday, spreading word across industry groups about the plans for multi-employer bargaining.

“We were meeting with the government as late as Friday on workplace relations reforms,” he said.

“We had expected further consultation. There is no significant support for ACTU proposals regarding multi-employer bargaining from industry, only deep alarm.

“Any adoption of radical union proposals to afford them a right to co-ordinate industrial action across a sector or industry risks imposing significant adverse consequences for the community and economy as recently identified by the Productivity Commission.”

The ACTU declined to comment on the looming workplace law, saying questions should be directed to the government.

Business Council of Australia chief Jennifer Westacott said she and others had been working in “good faith” with the government but were yet to see a proposal in writing.

“With global economic storm clouds gathering, it’s crucial we act very carefully to avoid changes that could increase unemployment, increase disruptive strike action and undermine our economic security.”

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