Labor under fire for ‘eleventh hour’ industrial relations changes

Australians will face higher grocery prices under Labor’s proposed industrial relations changes allowing unions to cut deals with major companies on transport costs, the Coalition has warned.

Australians will face higher grocery prices under Labor’s proposed industrial relations changes allowing unions to cut deals with major companies on transport costs, the Coalition has warned.

Crossbench senators and business groups have also raised concerns about a new amendment that would create a “right to disconnect” in the Fair Work Act, calling on the federal government not to ram the change agreed to with the Greens through parliament next week.

The Opposition has claimed Labor’s plan to let unions and head contractors, such as a supermarket giant, make transport cost agreements that the rest of the supply chain is also forced to comply with would reduce competition and therefore drive up prices.

In a dissenting report rejecting the government’s Closing Loopholes bill, Coalition senators said it was “incomprehensible” for Labor to make industrial relations changes that “guarantee higher prices” for road transport in the middle of a cost of living crisis.

“The cost impacts run right through the supply chain, and ultimately it will be the customer paying more at the checkout,” the senators said.

The Coalition is warning grocery prices will rise under Labor’s industrial relations changes

Employment and Workplace Relations Minister Tony Burke is expected to push industrial relations changes through the senate next week. Picture: John Feder/The Australian.

The majority of the Senate Committee behind the review of Labor’s legislation recommended the changes be passed, with 11 amendments put forward including creating a legal “right to disconnect” to protect employees’ work-life balance.

A draft of the amendment, which was negotiated with the Greens, was circulated to key crossbench Senators on Thursday, but has not been released publicly.

Independent Senator David Pocock has called for more consultation on ‘right to disconnect’ proposal. Picture: NCA NewsWire / Martin Ollman

Senator David Pocock said he was concerned about the lack of public consultation on the amendment and called for additional safeguards to ensure the right was not used “vexatiously”.

“I also believe additional resourcing is needed to develop guidance, particularly for small businesses, on this new right and is application,” he said.

BCA chief Bran Black says he is concerned about Labor’s ‘eleventh hour’ IR changes. Picture: NCA NewsWire / Martin Ollman

Business Council of Australia chief executive Bran Black said he was disappointed the government introduced the change “at the 11th hour with no consultation and no detail on what it will entail”.

“We fear it will be rammed through the parliament next week,” he said.

The committee report also called for casual employees rights created by the bill to be clarified.

It acknowledged views on provisions dealing with casual employment and gig economy workers were “more mixed”, with industry bodies and employers raising concerns about the complexity of the measures “being a handbrake on productivity”.