Bosses unite against ‘sledgehammer approach’ on industrial relations

Australia’s biggest employers are preparing a co-ordinated strike on Labor’s IR shake-up, with mining giants accusing the Albanese government of using a ‘sledgehammer approach’.

Minerals Council of Australia chief executive Tania Constable says ‘we’re co-ordinated, we’re united and we’ve given a common message … that this bill represents a sledgehammer approach’. Picture: Hollie Adams

Australia’s biggest employers are preparing a co-ordinated strike on Anthony Albanese’s multi-employer enterprise bargaining industrial relations shake-up, with mining giants accusing the government of using a “sledgehammer approach” and threatening campaigns on several fronts.

The private sector revolt comes as Woolworths – one of Australia’s largest employers – called for an “urgent” review of the retail award for its workers and guarantees from the Albanese government that it would not be forced into multi-employer bargaining.

In its submission to a Senate inquiry into the IR legislation, the retail giant warned the new laws could have unintended consequences that put sustainable wage growth at risk.

Minerals Council of Australia chief executive Tania Constable, representing mining companies including BHP, Rio Tinto, Glencore and Whitehaven, told The Australian “we’re co-ordinated, we’re united and we’ve given a common message … that this bill represents a sledgehammer approach”.

The MCA has hired former Nationals federal director Jonathan Hawkes as campaign manager and other prominent strategists to lay the ground for potentially the biggest industry-wide campaign since the mining tax.

“We’re not going to sit idly by and have bad policy put forward to us without standing our ground. We are gearing up for what might be a worst-case scenario,” Ms Constable said.

“Our preference is to work with government, but this is an industry that has helped keep the economy going through Covid. We are the highest paying company tax industry. We pay almost a third of the entire company tax.

“There are a number of policies that are already impacting significantly on the mining sector all at the same time in a very short period after they’ve come into government. We expect that they take stock of what they’re doing.”

Miners, farmers, builders, ­retailers, small business and airlines are working together in ­response to the Prime Minister’s “rushed” workplace relations changes. Business leaders said “talks are under way” to form a cross-sector mining, gas, aviation, agriculture, construction and business alliance in response to the government’s fast-moving policy agenda.

Companies and industry groups have rejected government claims of a jobs summit mandate and raised concerns over inadequate consultation, mixed messages from ministers, speculation over new taxes on coal and gas, and a looming crackdown on the nation’s biggest emitters.

Ms Constable, who is appearing at a Senate committee hearing into the Secure Jobs, Better Pay bill on Tuesday, said “there is absolute co-ordination (on IR) across all of the industries and peak industry groups”.

Crossbench senators David Pocock and Jacqui Lambie, one of which Labor needs to push legislation through the Senate alongside the Greens, are being lobbied by companies and industry groups to stall passage of the IR bill ahead of Christmas.

Senator Pocock, who met Mr Albanese in Canberra last week, has urged the government to split the bill and allow more time to consider contentious elements.

Woolworths said while multi-enterprise bargaining may be ­appropriate in some sectors, the retail sector was “extremely concerned … it would risk making the system more rigid, reduce flexibility and reduce the opportunity to unlock improved productivity – and in turn, sustainable wage growth – compared with single enterprise bargaining.”

Boasting a workforce of more than 170,000, with majority ­female employees, Woolworths called for stronger safeguards in the bill to ensure it could continue to operate in a single enterprise bargaining system without unforeseen consequences. Woolworths said the most pressing concern for the sector was modernisation of the general retail industry award which would deliver better outcomes for its workers.

The MCA submission said ­allowing multiple employers to be included in bargaining would expose an entire supply chain to protected industrial action. If a six-week strike impacted Port Hedland, around $9bn would be lost in iron ore export revenue and $551m in lost royalties for WA. Under the same scenario at Port of Newcastle, “forgone coal export revenues alone could be $3.1bn and royalties of $190m”.

Ms Constable said “this is a ­solution looking for a problem … it’s all about giving unions more power”.

A senior resources company executive said that “under Labor, at state and federal, we’re seeing higher taxes, more strikes and project approvals slowing”.

“Governments have a spending problem, not a revenue problem, that they need to address. Increasing taxes, slowing or stopping project approvals and allowing strikes to run rampant will not increase productivity or prosperity,” the executive said.

“Jobs will be lost and regional communities will bear the brunt.”

The Australian Chamber of Commerce and Industry asked the Senate committee to support major amendments to the bill and for single-interest employer authorisation to be carved out.

The Australian Industry Group wants the government to effectively tear-up its first tranche of IR reforms and start again. It described the bill as “hastily developed ill-conceived legislative changes”.