Opinion: Greg Ireland says federal industrial relations reform will hit Northern Territory businesses

Opinion: The Northern Territory Chamber of Commerce boss Greg Ireland says Anthony Albanese’s industrial relations legislation could have a chaotic impact on the Top End.

The Secure Jobs, Better Pay Bill aims to promote wage growth and improve job security. Keeping in mind in 2022 wage growth had the fastest increase since 2013 and unemployment rates continuing to reduce, you must begin to wonder why there is such a sense of urgency for this Bill to pass through the Senate before the end of the year.

This week, the Senate Inquiry sought an extension to November 22 to consider evidence received and to conclude its deliberations.

This is understandable, 243 pages of complex legislative reform is a lot to digest.

Perhaps where the Senate cannot ensure careful and thorough examination of concerns held by business, due to unrealistic time frames, the Bill should be opposed or at the very least split to ensure better control.

Prime Minister Anthony Albanese is hoping his industrial relations reform makes it through parliament but the NT Chamber of Commerce opposes the move. Picture: NCA NewsWire / Martin Ollman

In fact, the Secure Jobs, Better Pay Bill is more likely to achieve the exact opposite.

Chambers of commerce across Australia are engaging with their members who have overwhelmingly stated that this legislation could result in reduced staffing levels, limits to operations, increased work undertaken overseas or, worst case, shutting their doors completely.

In short, the proposed changes to the industrial system will be bad for Australian business – as presented, they will mean more disputes, lower productivity, and lower wages.

If enacted, this legislation would drag employers to bargain against their wishes.

Businesses will be forced to adopt one-size-fits-all terms and conditions, which may be unaffordable and ill-suited to the needs of their workplaces.

Direct competitors could be compelled to bargain with each other, while small businesses may be forced into accepting agreements with much bigger businesses.

This will undermine workplace flexibility, economic dynamism, and productivity.

This legislation will also see bargaining disputes quickly referred to compulsory arbitration. This gives the Fair Work Commission the power to dictate terms and conditions of employment for workplaces around the country, at the expense of employer and employee wishes.

The Bill will also reduce the right of businesses to set work arrangements based on their best judgment.

Government appointees at the Fair Work Commission will now have the last word on which hours employees should work, or where they should work from.

We all share the ambition of wage growth, but lifting productivity is the only way to do this – not by taking control away from businesses and their employees.

Enterprise bargaining should be the cornerstone of our workplace relations system if we are to grow pay packets, improve job security, and boost productivity, not an unjustified expansion of multi-employer bargaining.

Parliament has had a ridiculously inadequate amount of time to scrutinise what are enormously consequential changes to workplace laws.

The chamber calls on the Senate to split the Bill, allowing uncontentious matters – such as changes to the better-off overall test, low-paid bargaining and measures to enhance gender pay equity – to pass, while guaranteeing more time for the contested issues to be resolved.

Business must always have the right to set critical work arrangements like hours and place of work.

The final arbiter on these matters must not be government appointees at the Fair Work Commission.

Key decisions must remain with the business owners who know their business best.