Same Job, Same Pay would ‘take Australia backwards’ according to business groups

Australian workers are at risk of losing bonuses, car and meal allowances and other work perks under the federal government’s proposed “Same Job, Same Pay” laws, business groups claim.

Australian workers are at risk of losing bonuses, car and meal allowances and other work perks under the federal government’s proposed “Same Job, Same Pay” laws, business groups claim.

In their latest resistance to the industrial relations reforms, business groups say if companies have to pay contractors the same salary as employees under an enterprise agreement, they will be forced to forgo incentives and ­bonuses for their remaining workforce.

The Minerals Council and Business Council have teamed up to argue that businesses will either scale back or scrap their bonus payments for their own employees, as those bonuses will also be required to be paid to subcontractors.

They argue that if a major company – with employee benefits in the enterprise agreement – hires an electrician as a contractor, that electrician would be lugged with the responsibility of paying his workers the same benefits.

Minerals Council of Australia chief executive Tania Constable said businesses would face a “regulatory nightmare” when handing out work benefits because they would also need to apply to the employees of any subcontractors they use.

Minerals Council of Australia chief executive Tania Constable said businesses would face a “regulatory nightmare”.

“The government says it is seeking to close loopholes, but its workplace changes would instead close the door to workers receiving bonuses, car allowances and salary packaging,” she said.

“The so-called ‘Same Job, Same Pay’ proposal will ­require service contractors and labour hire workers to receive the same full rate of pay as they would receive if employed under the host employer’s enterprise agreement.

“Any employer wanting to offer incentives will be confronted with a regulatory nightmare in working out which incentives must be applied beyond its own employees.”

Business Council of Australia chief executive Jennifer Westacott said the laws would “take us backwards”.

Tony Burke hit back at the claims.

“Taking away the bonus would just take us backwards at a time when workplace reform is critical to underpinning increased productivity,” she said.

“A big part of this challenge is avoiding needless ideological changes that leave Australians worse off in the long term.”

Industrial Relations Minister Tony Burke hit back at the claims.

“Where an employer has agreed on what the minimum rates will be at their workplace, then those minimum rates should be the floor. Anyone can pay bonuses above that – but you shouldn’t be allowed to undercut it,” he said.

“If we were to start playing games with which allowances were in or out you would ­simply replace one loophole with another.”

Originally published as Same Job, Same Pay would ‘take Australia backwards’ according to business groups