Grocers warn IR changes will hike prices

Master Grocers Australia says Labor’s workplace changes could result in business closures.

Master Grocers Australia says grocery prices could increase if Labor’s proposed workplace changes become law.

Retailers have warned Labor’s proposed industrial relations changes could result in higher grocery prices and job losses through the closure of businesses unable to cope with the cost and complexity of complying with the new laws.

Master Grocers Australia, whose members include IGA, FoodWorks and Mitre 10, said passage of the Closing Loopholes Bill would “unfairly and unnecessarily place additional downward pressure on businesses during what are already difficult trading conditions”.

“If the Bill is passed into law, some communities may need to contend with the closure of their local independent grocery, ­liquor, timber or hardware store,” the MGA says in a submission to a Senate ­inquiry examining the bill.

“This could potentially lead to a decrease in competition, increase in the cost of essential goods, loss of employment ­opportunities and the destruction of communities.

“The ultimate victims of the unintended consequences contained within this Bill will be consumers who ironically are the very workers the Bill is attempting to protect.”

Among the MGA’s concerns are the proposed casual employment provisions that it says will “undermine the confidence of businesses to flexibly roster casual employees as and when required, in agreement with the employee”.

“The practical assessment of a casual employment relationship by consideration of the ‘real substance, practical reality and true nature of the employment relationship’ creates uncertainty and ambiguity and will likely result in extensive time consuming and costly litigation to determine,” the MGA says.

“The Bill’s definition of casual employment being characterised by an absence of a firm advance commitment to continuing and indefinite work is vague and open to interpretation. The lack of clarity is likely to result in significant uncertainty for businesses and act as a disincentive to engage casual employees out of fear of misinterpreting the definition.” The MGA also says the bill’s ­introduction of a legislated definition of employment seeks to displace recent High Court decisions.

MGA expressed concern the proposals were poorly understood by the community and their wide-ranging likely harm to the economy and businesses had not been adequately considered.

“MGA, through its members, is acutely aware of the significant economic and financial pressures being endured by Australian businesses and consumers during the current cost of living crisis,” the submission says.

“Especially small to medium family owned and operated businesses who have been severely burdened in recent times by soaring interest rates, rising costs of transport and fuel coupled with significant energy cost increases.

Meanwhile, the Fair Work Ombudsman said it recovered $509m for 251,475 underpaid workers in 2022-23 – the second consecutive year of more than half a billion dollars in underpayments recovered.