Australian business leaders to fight Labor on ‘same job same pay’ IR reforms

Labor’s industrial relations changes will create a “red tape minefield,” risk jobs and make pay unfair, say major Australian employers.

Australia’s builders, farmers, oil, gas, small and large business operators will launch a pre-emptive strike on Labor’s industrial relations plan with a public campaign warning the proposal will create a “red tape minefield” for employers, destroy workers’ flexibility and drive up consumer costs.

In an advertising blitz starting Monday, peak bodies including the Business Council of Australia (BCA), the National Farmers Federation, Australian Chamber of Commerce and Industry (ACCI), Master Builders Australia, the Australian Petroleum Production and Exploration Association (APEA) and more will condemn the federal government’s proposed “same job, same pay” reforms as heavy-handed and unfair.

The full details of the government’s proposed changes, due to be unveiled later this year, will focus on what Labor has described as closing “loopholes” exploited by businesses to undercut workers’ pay.

Employment and Workplace Relations Minister Tony Burke has said the reforms would ensure subcontractors or labour hire workers were not deliberately paid less than their permanent colleagues for doing the same work.

Australia's peak business groups have launched an advertising campaign.

Aussie businesses say proposed IR laws will undermine fairness for workers.

But ACCI chief executive Andrew McKellar said “same job, same pay” was the “opposite of fair” as it restricted “reward for effort and experience”.

“It will take away the flexibility that workers want and businesses need,” he said.

BCA chief executive Jennifer Westacott agreed and said Labor’s plan would be an “own goal” for the country because “jobs will go somewhere else”.

“This is going to really impact on workers … and will also make Australia an extremely unattractive destination for people to invest,” she said.

Council of Small Business Organisations Australia chair Matthew Addison said Labor’s changes must not be allowed to have “far reaching, unintended negative consequences”.

Master Builders Australia acting chief executive Shaun Schmitke said Labor’s changes “pose a serious threat” to the construction industry and threatened to strip subcontractors of their “autonomy,” ability to negotiate higher wages and be “free from the influence of unions.

National Farmers Federal boss Tony Mahar said it would be a “red tape minefield” for farmers.

The advertising blitz is a pre-emptive strike on the proposed laws.

Minerals Council of Australia chief Tania Constable said the “dangerous policy” would chase away local investment and jobs, and was unfair to workers.

“How is it fair that someone with six-months’ experience can demand the same pay as someone with six-years’ experience?,” she said.

National Farmers Federal boss Tony Mahar said “same job, same pay” would be a “red tape minefield” for farmers.

“Most farms are small, family-run businesses which don’t have lawyers or any HR department to turn to,” he said.

“It would spell chaos and confusion at peak periods like harvest.”

APPEA chief executive Samantha McCulloch said the oil and gas industry needed an industrial relations framework that supported flexibility and improved productivity to “ensure competitive and affordable gas supply” needed for the future.

Mr Burke has consistently rejected criticism from the business sector, arguing it was “not fair” for a major employer to agree to a pay rate with employees and then undercut that by using cheaper labour hire workers instead.

“It’s a loophole,” he said in May. “It needs to be closed and we’ll be closing it this year.”

Mining and Energy Union general secretary Grahame Kelly has also condemned employers’ “fearmongering” and said the new laws would be “good” for the industry.

 “Same job, same pay … will be great for regional communities who lose out when big employers cut wages for half the workforce,” he said.