‘Same job, same pay’ garbage risks productivity, US deal

Tony Burke’s IR legislation will turn the US deal into garbage because it will slash productivity. Picture: Gary Ramage/NCA NewsWire

Behind the smokescreen of “same job, same pay” slogan is an official ACTU presentation that has few parallels in the world union movement.

The ACTU has slammed our highest court for its clear definition of what constitutes a contract to provide services and provided its own definitions which will be the base of the ALP’s government next round of industrial legislation

In stark contrast, the debt-ridden left wing Victorian government knows better than any Australian government the disaster set to hit the standard of living of Victorians if Canberra’s so-called ‘employment’ minister Tony Burke’s proposed industrial relations legislation was allowed to impact Victoria.

As a result, Victoria not only embraces the High Court definition but shows how to make it work for everyone.

Victoria’s industrial relations minister Tim Pallas declares: “On-demand platforms and on-demand workers have become an indispensable part of everyday life for so many Victorians.

“We ask on-demand workers to arrange the delivery of our food, medicines, groceries and other goods. We ask them to provide us with some of the most personal support services. We also ask that they transport us wherever we want to go, day or night.

“However, to date, on-demand workers have been afforded few benefits or protections as a result of being characterised as non-employee workers (formally engaged as independent contractors)”.

And so in an unprecedented step that I detail below, Victoria has established Fair Conduct and Accountability Standards, to make as sure as possible that people receive proper rewards while preserving or enhancing the productivity advances that stem from contracting.

Sydneysider Burke probably has not given a thought that his legislation would finally destroy any chance that Melbourne has to match his Harbour City.

By contrast, the Victorian government knows what happens to Victoria if the Burke/ACTU legislation is passed.

I urge all Australian companies and industry bodies set to be hit by the Burke/ACTU legislation to embrace the Victorian code.

Tony Burke hasn’t given a thought that his legislation would finally destroy any chance that Melbourne has to match his Harbour City. Picture: Jonathan Ng

Victoria’s fate is set to be in the hands of the crossbenchers and as a Victorian I employ them to also study the Victorian rules which will promote productivity and lower interest rates (which Victoria along with over mortgaged Australians need) but also ensure that bad pay practices are rare.

The ACTU has the reverse approach and not only slams the High Court but declares that one of the best indicators for whether an independent contractor is truly independent is if they are able to subcontract out their work to others.

The ACTU estimates that than 565,000 Australian contractors are unable to subcontract out their work and they now out number those that can subcontract out their work.

Accordingly, under ACTU rules, sole traders with expertise become the “sham” contractors.

It’s not surprisingly their numbers are ballooning because individual private contracting now makes sense to many Australians who either see it as a way to earn good base income or as an addition to base employment income.

Nearly one third of independent contractors are engaged in the construction industry, and CFMEU calculates that between 26 per vent and 46 per cent are engaged on “sham contracts”.

But the bulk of independent contractors in construction are white collar-surveyors, architects, engineers – people with individual expertise The Burke-ACTU legislation will cause chaos in building.

As I pointed out on Tuesday, the brilliant deal that Prime Minister Albanese and Defence Minister Marles negotiated with the Americans is a pile of garbage if the ACTU-Burke legislation is enacted because it slashes productivity.

Americans will not back enterprises that are constrained by stupid bureaucratic rules.

In the “same pay” debate, many forget that contractors often want cash rather than superannuation and holiday entitlements. Many are stressed with immediate mortgage or rental obligations.

Some now see superannuation as a tax that hinders paying their mortgage or obtaining a dwelling. And thanks to the looming tax on unrealised superannuation capital gains, Australians in all walks of life are also starting to see superannuation as akin to a tax.

Nevertheless, like the Victorian government, I realise that the ACTU is right that some people are being exploited by contracting.

The Victorian government’s Fair Conduct and Accountability Standards, embraces the thrust of the High Court determination and sets out six platforms to improve the position of non-employee on-demand workers who perform gig work. And those platforms are enhanced by the Federal Unfair Contracts legislation:

– There should be consultation processes, forums or committees to allow for discussions with non-employee on-demand workers.

– Platforms should ensure that the terms and conditions of the applicable contract are clear and able to be understood by non-employee on-demand workers.

– To assist non-employee on-demand workers to make an informed decision about whether to accept work, platforms should provide them with key information in writing about what they will earn should they complete a job, and how earnings are calculated; typical costs associated with the performance of work; and their conditions of work.

– Fair and Transparent Independent Dispute Resolution.

– Platforms should not inhibit non-employee on-demand workers from freely associating to pursue improved terms and conditions relating to their work arrangements, where permitted by law

– Platforms must comply with their duties under the OHS Act.

Sometimes when a state has its back to the wall, it thinks more clearly than the agenda ridden Canberra types.