The business ad campaign will put the government under pressure

After losing out badly at the Albanese government’s Jobs and Skills Summit in September, which took industrial relations back to before the Hawke-Keating era and lumbered industry with collective bargaining, the nation’s employers, farmers and small-business owners are fighting back. They have stepped up to bankroll an advertising campaign that declares war on the second round of the government’s workplace relations changes. From Monday, they will attack the union-backed same job, same pay laws as a direct hit on aspirational workers. The number and variety of participants in the “A Better Way, for Better Pay’’ campaign underlines the depth of dissatisfaction with the government’s changes. These are geared to fulfilling union demands for a better deal for casual and gig economy workers. The alliance against Workplace Relations Minister Tony Burke’s same job, same pay changes represents the industries that form the backbone of the economy. It includes the Minerals Council of Australia, Business Council of Australia, Australian Chamber of Commerce and Industry, Australian Petroleum Production & Exploration Association, Master Builders Australia, National Farmers Federation, the Council of Small Business Organisations Australia and the Recruitment, Consulting and Staffing Association.

The industry-wide blitz will be funded by the biggest war chest since the mining tax fight, chief political correspondent Geoff Chambers reports. BCA chief executive Jennifer Westacott said the IR changes are “an own goal for the country and then an own goal for workers because jobs will go somewhere else”. Workers should be rewarded for their experience and effort, but “those laws are going to make it impossible”. The campaign ads warn workers that if you believe in being rewarded for your experience and working harder – “same job, same pay will take that away”.

Leaders of the campaign emphasised the rigidity of the current and upcoming IR laws. “It means by law, employers will have to pay workers with little knowledge or experience exactly the same as workers with decades of knowledge and experience,” the campaign launch statement said. “It means by law, you cannot earn better pay by working harder or longer, if your colleague does not share your ambition or work ethic. This retrograde policy will deny Australian workers flexibility and the capacity to be treated individually. It will deny them the opportunity to negotiate more pay for harder work.” MBA acting chief executive Shaun Schmitke said the proposed changes threatened to strip subbies and independent contractors of their autonomy to negotiate higher wages and conditions, and choose the projects they work on, free from union influence. The changes tied the hands of the building and construction industry at a time communities were crying out for more housing. NFF chief executive Tony Mahar said same job, same pay would be “a red tape minefield for farmers”. “We can’t pretend every temporary contractor has the same value as a longstanding employee,’’ he said. “We should be allowed to reward loyalty and experience.” COSBOA chair Matthew Addison said small-business owners were concerned the same job, same pay proposal will damage many employer-employee productive relationships. Small business seeks to reward workers “for effort, experience, loyalty and productivity’’.

A major brake on productivity is the last thing the economy needs when rising wages, not supported by productivity gains, are adding to inflation and contributing to higher interest rates. The business IR campaign launch comes a few days after news that the annual inflation lifted to 6.8 per cent in April from 6.3 per cent in March and the Fair Work Commission granted 2.5 million workers on awards a 5.75 per cent pay rise, with 8.6 per cent for 184,000 workers on the minimum wage. The increases were not linked to productivity gains. Higher productivity, Paul Kelly wrote in Inquirer on Saturday, “makes us richer, provides better government services, delivers higher wages – and, if we’re smart about it, means a better society”. Yet over the past three years there has been no increase in the average output per hour in Australia, Reserve Bank of Australia governor Philip Lowe told Senate estimates last week.

Adding to union controls in workplaces and the rigidity of IR regulations will be a retrograde step for productivity. The industry-led campaign is central to wealth creation and the aspirations of workers and employers. After being too docile for too long, it is good to see industry standing up.