IR bill to erode productivity

Improving productivity to maintain living standards and fund generous social programs demands cutting business red tape, among other initiatives. Unfortunately, the Albanese government’s latest omnibus “same job, same pay” industrial relations bill will be a hindrance rather than a help, as the Business Council of Australia argued on Wednesday. The bill contains at least 13 different starting dates for various measures across the next 15 months, creating confusion for businesses and staff, BCA chief executive Bran Black said. To some extent the legislation is retrospective, adding to its critics’ legitimate grievances. “The anti-avoidance measures related to labour-hire agreements came into effect on the day the bill was tabled in parliament last week – before it had even been debated, let alone passed,” Mr Black told workplace editor Ewin Hannan. “It is already affecting businesses’ hiring decisions for fear they will be breaking a law that does not even exist.”

The bill has been referred to a Senate committee inquiry scheduled to report by February 1 next year, so it is unlikely to pass parliament for at least six months. Mr Black said the legislation would bring unnecessary complexity and confusion into workplace relations. Some provisions will apply as soon as legislation receives assent. Others, such as changing the definition of casual work, will take effect next year, through to January 1 2025. Employment and Workplace Relations Minister Tony Burke was unapologetic. “Why would we give the businesses that exploit loopholes a free pass to find the next one?” he said. But employers not wanting to find themselves on the wrong side of the act, even inadvertently, will be reluctant to take on extra staff until they have more certainty about the starting date of the new provisions and how they will apply to their enterprises.

With Qantas potentially facing a penalty in the vicinity of $200m for illegally outsourcing baggage handlers’, cleaners’ and tug drivers’ jobs three years ago, it is clear that, if in doubt, businesses should follow expert legal advice on complying with IR laws. Qantas accepted Wednesday’s High Court ruling that its outsourcing of 1700 ground services jobs was illegal, upholding two prior Federal Court rulings. The airline apologised for the impact the decision had on all those affected. As well as the ruling costing the company heavily in financial terms, its outsourcing has contributed to the travelling public’s loss of trust in the airline. The change was blamed for higher rates of lost and damaged baggage, long waits at baggage carousels, and minor collisions between aircraft and vehicles on the tarmac, aviation writer Robin Ironside reports.

Workplace laws should be clear and encourage co-operation between employers and workers. That is the path to productivity gains, as reforms of the Hawke-Keating and Howard eras showed. The Albanese government’s 278-page bill, with 500 pages of explanatory notes, is making the system more rigid, bureaucratic and complex.