Our independent senators must keep fighting for battlers

The seven independents in the Senate have achieved what many thought impossible — to convince the government to consider making amendments to its 784-page industrial relations bill.

All the independents deserve high praise for their determination and careful analysis of the complex business blueprint. But, sadly, their job is only just starting.

They have not been able to achieve the changes required to avoid a bloodbath among Australia’s mortgage and rent stressed communities, who are facing 25 per cent take home pay cuts.

In addition, small and medium business — fish and chip shops, hairdressers, coffee shops, pharmacies and so on — can’t afford High Court challenges so will be put out of business if they make an accidental mistake interpreting arguably the most complex legislation ever devised by Australian public servants.

The attacks on the gig economy and small contractors like gardeners and plumbers are still in place, as is the stripping of the powers of the ACCC to enable a cartel between unions and large transport companies to put small truckies out of business and lift prices.

The mining labour hire mess looks like being made even more complex by the latest changes, but in that area the players have the money to go to the High Court and already are planning to transfer major investment overseas. Small operators don’t have those choices.

But what makes me feel sick in the stomach is we have a Prime Minister who grew up in a single parent household in the shadow of the legion of Ben Chifley, yet allows one of his ministers to brutally attack the people who are among those suffering most in our society.

Prime Minister Anthony Albanese at the APEC Leaders Retreat in San Francisco, California. Picture: Kent Nishimura

In last week’s series, I explained how Australia was concentrating the burden of reducing inflation on those who are mortgage and rent stressed. But a large number keep up their house payments (mortgage or rent) by adding casual work to their base income. Some convert all their income to casual work.

The entitlement to be employed as a casual provides 25 per cent more cash in the pocket. In exchange, there is no holiday pay, sick leave, job security etc.

Employers like the flexibility that casual labour gives them, but casual labour drains cash from employers’ pockets, and they have much less control over their workforce. But they are being forced to offer casual work entitlements because of the cash requirements of those under stress.

What any fair industrial relations legislation should do in these circumstances is to set out simple rules for complete disclosure to those who want the extra cash and to make sure that the full 25 per cent entitlement margin is being properly paid.

Instead, the 784-page industrial nation's legislation sets out voluminous, complex rules defining who is entitled to receive the extra cash in casual employment.

It is impossible for small and medium-sized enterprises to understand those rules. Yet if two independents cave in and the bill is passed and the local pharmacy, hairdresser or cafe incorrectly offers an entitlement to casual work they could be liable for $93,000 per breach. They’ll go out of business.

Let me share with you just a small portion of what is required to gain casual employment entitlements.

At the base, there must be “an absence of a firm commitment to continuing and indefinite work …”

To “help” a small business person work out what that means, the bill sets tests. Casual entitlement is to be assessed:

(a) on the basis of the real substance, practical reality and the true nature of the employment relationship; and,

(b) on the basis that a firm advance commitment can be in the form of the contract of employment or, irrespective of the terms of that contract, in the form of a mutual understanding or expectation between the employer and employee …

And it keeps going on and on with endless clauses that are beyond the understanding of ordinary Australians, including “exceptions to the general rules”.

And if you make a mistake, you are fined out of business.

The people who designed this garbage had one clear aim: Stop all casual work. They couldn’t care less if such an action increased the suffering of Australians.

The Australian Hotels Association believes it negotiated a loophole to enable those serving beer behind the bar to get special entitlements to be a casual. I wouldn’t bet on it because this legislation’s clauses are far too complex and few publicans can afford to go to the High Court to sort it out.

This week we will see another version of the act with emphasis on the mining industry. We will wait and see, but my legal advisers say once again the law is so complex that the attempt by AREEA to gain special concessions will depend on the High Court judgments.

My greatest fear is in all the debate over the mining concessions, ordinary Australians wanting extra income will be ignored. Their only hope is if the seven independents will continue to act on their behalf.

Sadly, the government has simply forgotten about ordinary Australians, whether they be coffee shop owners, hairdressers or those with big mortgage or rent bills. Let them suffer. Government politicians are in a world of their own.