Fears of industry-wide strikes risk jobs summit consensus on pay bargaining

A clash over workplace law has undercut a consensus at the federal government’s jobs summit after Employment Minister Tony Burke unveiled plans to allow unions to negotiate uniform pay deals across multiple employers despite fears it would clear the way for strikes that bring entire industries to a halt.

Business chiefs urged the government to rule out the “alarming” prospect of industry-wide strikes under reforms that will go to consultation next week as part of changes to the Fair Work Act to promise better conditions for workers and a chance to lift wages.

Employment and Workplace Relations Minister Tony Burke unveiled plans to allow unions to negotiate uniform pay deals across multiple employers.Credit: James Brickwood

But the dispute over workplace law did not prevent Prime Minister Anthony Albanese gaining broad agreement on the opening day of the Jobs and Skills Summit from unions, employers and state premiers on a wider agenda including $1.1 billion for fee-free training and an increase in migration to solve labour shortages.

The skills agreement provides funding for 180,000 places at TAFE colleges at no charge to students in selected courses next year, leaving it up to states and territories to cover their share of the cost and make the places available.

The investment in skills has smoothed the ground for unions to accept an increase in the permanent migration intake from 160,000 to 200,000 each year, although employers and some state leaders are holding out for an intake of 220,000 in the belief this would do more to ease labour shortages.

While the progress on several fronts has cleared the way for a positive end to the summit when Albanese closes the event on Friday afternoon, the stand-off over workplace law is certain to continue while unions and employers try to hammer out a compromise.

Burke is seeking to introduce legislation by the end of the year, a tight timeframe when Parliament only sits for four weeks after the October 25 budget.

Setting out the reform plan from the podium, Burke listed reforms including greater protections for workers against discrimination and harassment, and then introduced the proposal to make easier multi-employer agreements part of the changes to the law.

“Next, ensuring workers and businesses have flexible options for reaching agreements, including removing unnecessary limitations on access to single and multi-employer agreements,” he said as he read out the list.

“Allowing businesses and workers who already successfully negotiate enterprise level agreements to be able to do so without those changes interfering with it.

“Removing unnecessary complexity for workers and employers, including making the better off overall test simple, flexible and fair.”

Burke discussed the list with some of the business delegates before announcing the plan to the room before the lunch break, but he did not spell out the changes he had in mind and left scope to negotiate the detail in the talks to come.

Coalition workplace spokeswoman Michaelia Cash said: “With the Labor government, the devil will always be in the detail. Mr Burke’s announcement appears to be the first step towards satisfying the ACTU’s demand for industry-wide bargaining”.

“Labor are very good at deceiving the Australian people – they didn’t take a policy on this to the election,” she said.

Business leaders welcomed the government’s willingness to amend the better off overall test, known as the BOOT and designed to guarantee that workers do not go backwards in enterprise bargaining negotiations, because employers complain it prevents flexible deals.

But Australian Industry Group chief Innes Willox quickly rejected the idea of multi-employer agreements.

“A clear red line for industry is the potential for unions to engage in industrial action in pursuit of multi-party bargaining claims. This has the potential to shut down key parts of our economy in the pursuit of claims. Such a possibility has deeply alarmed industry and must be ruled out,” Willox said.

Ai Group is asking the government for detail around the proposal, aired by ACTU secretary Sally McManus last week, warning unknown factors included the size of the businesses that could sign up, the industry sectors to be covered and the implications for companies that refused to sign.

Australian Chamber of Commerce and Industry chief Andrew McKellar said the ACTU should be transparent about the changes it is proposing.

“We would be concerned that it does risk becoming an agenda to unionise small business and expose it to a greater risk of industrial action. That’s not in the interest of small business,” he said.

Business Council of Australia Jennifer Westacott rejected multi-employer agreements one week ago but was silent after Burke aired the proposal at the summit.

Australian Constructors Association chief Jon Davies, a delegate at the summit, said building projects varied from old sites to “greenfield” development and should not be subject to multi-employer agreements.

Credit: Matt Golding

“We want the flexibility to address issues on a project-by-project basis,” he said.

“It would be problematic for our sector. And the obvious concern with those arrangements is the opportunity for taking protected industrial action over a large number of projects.”

Another delegate, Simon Butt of the Master Builders’ Association, said there would be no gain to productivity by “forcing” businesses to agree to industry-wide deals.

“Suggestions that such arrangements could be ‘opt-in’ are disingenuous as businesses would inevitably be subjected to union bullying to sign up,” he said.

Asked on Thursday night if there was a political risk if the changes led to industrial disputes and strikes, Treasurer Jim Chalmers told the ABC’s 7.30 program the government wanted to press ahead with changes that would “modernise bargaining”.

“There will be a lot of consultation, which Tony Burke flagged today, including with some of the employer groups who have raised their concerns.

“We listen respectfully to those concerns when they are raised but we intend to proceed down this path because we can’t have more of the same wage stagnation which has been a feature of the economy for the best part of a decade.”

Albanese said multi-employer bargaining was not about industrial action but about how to lift profits and productivity.

“If you’re a worker you have an interest in your business being successful because that means more people are employed and that means you have an opportunity to get on as well,” he said.

Burke said there was “enough of agreement on the concept of opening up to multi-employer bargaining that we’re willing to go forward on it”.

“The big shift we saw on the floor there from where the conversations had been at even a few days ago, is those different business groups have gone from railing against it, to saying effectively they want to see where the case is being made. That is a big shift in itself,” he said.

NSW Premier Dominic Perrottet said: “If employers can reach agreements with unions in relation to streamlining, making things easier, then that’s a positive thing. But for me the key issues at this summit needs to address are labour shortages, skills shortages, and long-term productivity.

“Let’s focus on the real things that matter right now, and not have the unions take over the summit.”

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