ACT Government, business owners, industry groups raise portable long service leave concerns
Local business owners and industry bodies have accused the ACT Government of not properly consulting with them about a proposal to expand portable long service leave.
Canberra Star
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Small business owners and industry groups are raising concerns about an ACT government bill to expand portable long service leave to workers in the hair and beauty, accommodation and food service industries.
The bill was tabled in the ACT Legislative Assembly on November 22 last year by Industrial Relations and Workplace Safety Minister Mick Gentleman.
And an inquiry into the bill released on Monday recommended the bill pass.
However local business owners and peak bodies say if passed the bill would create more costs for already struggling businesses and drive away business from the ACT.
They have also raised concerns about the consultation process.
Eden Hair Energy salon owner Emmalene Mahar says she’s concerned the bill as it stands would be “another incentive for people to move”.
“I think long service leave, as the name suggests, is a really great incentive we have available to reward a period of longer service,” Ms Mahar said.
“If we don’t have that, what other mechanisms do we have to incentivise people to stay in our business long term?
“We’re offering (jobs and salaries) well above reward, conditions well above award, we’re creative about work life balance, we’re offering different rosters.
“We don’t have a whole lot more we can draw on to incentivise people to stay in a business longer term.”
Ms Mahar, who has run the Dickson-based salon for nearly a decade, said the bill had come at a particularly difficult time for the industry predominantly made up of small businesses which were still recovering from the impacts of Covid-19.
“I think people could probably count on one hand the number of salon franchises in Australia — and it should be noted, these are actually franchises with individual franchisees — they’re still actually small business,” she said.
“We basically have an industry that is completely made up of small businesses; (this bill would) impact the smallest of small businesses in an industry that’s already experiencing a number of challenges.”
Ms Mahar wrote into the inquiry to oppose the bill, however she was concerned the government did not consult properly with business.
“The consultation process hasn’t been very open or transparent,” she said.
“I only learned about it through an industry association I’m actively involved in.
“I don’t believe the consultation is genuine.”
Despite the concerns she has about the bill Ms Mahar said she believed more consultation could lead to solutions which supported businesses and employees alike.
“I would love to see and be involved in consultation, and I’m super open and interested in a conversation about what changes might look like,” she said.
“I think in 2023 job mobility is on the rise, and it’s probably worthwhile to recognise (long service) needs to be revisited.
“Maybe long service is paid out at five years rather than 10, that's more consistent with what a period of long service looks like in this day and age.
“As a small-business owner I would be immensely happy if someone were to stay in my business for five years, that would make a huge difference to what I'm able to provide new employees and to our apprentices.”
Australian Hotels Association ACT branch general manager Jason Hawketts began his role at the organisation on the same day the bill was tabled.
“I was in a scramble to get my head around it at the time … I had a couple of meetings with different ACT ministers to get myself up to speed,” he said
“It just does not feel like we’ve had enough time to get enough of the correct data and the correct responses from everybody, it just doesn’t feel like they’ve asked enough people their opinions about this.”
The association, which represents the hotel and hospitality industry, did not make a submission to the inquiry, however Mr Hawketts said the organisation had “strong concerns” about the bill.
“It’s just going to turn businesses off,” he said.
“How much money will it cost business owners at this time? It’s just such a bad time to introduce something like this, coming out of Covid-19.
“Obviously there’s a job shortage at the movement in the hospitality industry and (the government) is trying to put in incentives to draw more people into the industry and stick it out long term as a career — but this isn’t the right way to do that.
“Why would (someone) open a business in the ACT if we have to pay extra money when we could open in NSW where they don’t have portable long service leave?”
Mr Hawketts said he thought the ACT Government should re-advertise the plan and open up the opportunity for businesses and industry groups to have their say for a bit longer, given it was released before the traditional Christmas break period.
An ACT Government spokesman said the government undertook “extensive consultation” with a “variety of stakeholders” prior to the bill being tabled.
“Nineteen stakeholder groups, including industry associations and peak bodies, unions and other business and employee representatives – were contacted directly for their feedback on the proposed changes,” he said.
“Two stakeholder engagement sessions with interested industry and employee representative groups were held (and) we had engagement from both employee and employer representatives in the food and accommodation industry.”
The spokesman said if passed the bill had a two-year transition period to allow businesses time to adapt and understand their obligations, and said the ACT Government would use the period to ensure businesses were prepared.
In regards to the communication between the government and businesses, the spokesman said a consultation paper was published on the Workplace Safety and Industrial Relations website.
After the bill was tabled in the assembly on November 22, an inquiry into the bill commenced on December 8 with the report released on January 23.
The report states the deadline for submissions to the inquiry had been extended to January 19 due to it being run during the festive period.
The inquiry received 10 submissions, but there were no submissions from local business owners or peak bodies in the accommodation or food service industries
Only two submissions received by the inquiry were in favour of the bill.
Despite their favourable position on the bill, ACT Council of Social Service’s submission raised concerns about potential costs to employers and the transparency of the investment of funds accrued by the scheme.
Liberal MLA Leanne Castley, who is a member of the Standing Committee on Economy and Gender and Economic Equality which ran the inquiry, submitted a dissenting report.
A submission made on behalf of a salon owner accused the inquiry for its “lack of understanding of the industry” due to the timing of the inquiry.
“(The Christmas/new year period) is the busiest time of the year for all small businesses, and it also includes multiple public holidays and close down periods,” the submission read.
“Most small businesses do not have legal or industrial relations advice on call and in any event most of those (services) would be closed for the period.”
This concern was echoed in AI Group’s submission, which stated many of the businesses that could be affected by the bill would be either fully closed or partially closed during the festive season.
“The period over which the Inquiry is occurring and the short time frame for the report back may not result in the full range of issues relating to the Bill being canvassed before the Committee,” the submission said.
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