Industrial relations reforms hit major Senate roadblock

Key crossbenchers joined the Coalition to delay the Albanese government’s union-backed legislation until at least February.

Tony Burke’s sweeping shake-up of the nation’s industrial relations system has been thrown into doubt.

Tony Burke’s sweeping shake-up of the nation’s industrial relations system is under threat after key crossbenchers joined the Coalition to delay the Albanese government’s union-backed legislation until at least February next year.

Under pressure from employers, industry groups and small business leaders to stall the IR omnibus bill, independent ACT senator David Pocock and the Jacqui Lambie Network teamed-up with the opposition to quash Mr Burke’s planned vote before Christmas.

The blow to the government’s pledge to push the “Closing Loopholes” legislation through the parliament by December came as crossbenchers demand more time to consider the complex 284-page bill and 521-page explanatory memorandum.

Despite government expectations the Greens will rubberstamp the bill, they require two additional crossbench senators to support the legislation to push it through the Upper House.

Senator Pocock, who voted with the Coalition for a Senate inquiry to report back by February, urged the government to split the bill and separate the more contentious elements of the workplace overhaul.

After last year securing a deal with Mr Burke to pass Labor’s multi-employer bargaining laws, Senator Pocock on Thursday called for stand-alone legislation addressing reforms making it easier for ACT firefighters and first responders to access workers’ compensation for PTSD.

“My strong preference is for the government to separate out the more straightforward and less contentious elements of this bill so the parliament can deal with them quickly. The other measures aren’t scheduled to commence until July,” Senator Pocock told The Australian.

Mr Burke sparked a fierce reaction from employers and business leaders on Monday after finally releasing Labor’s second round of IR reforms.

Government economic analysis of the IR overhaul found that just two of the reforms – labour-hire changes and minimum pay standards for digital platform workers – would cost employers and consumers up to $9bn.

Mr Burke, who says the legislation is about closing labour-hire loopholes, attacked the Coalition for voting to “delay pay increases for mine and aviation workers”.

“They have voted to delay minimum standards that will save the lives of gig workers. They have just voted to trap permanent casuals in insecure work for longer,” the Workplace Relations Minister said.

“They have voted to delay the criminalisation of wage theft. They spent their entire time in government keeping wages low and holding workers back – and they’re still at it.”

Opposition workplace relations spokeswoman Michaelia Cash claimed the government had suffered “an embarrassing loss in the Senate”, given Mr Burke had been clear he wanted to “ram this bill through the parliament this year”.

“There was absolutely no need to rush this process because as Mr Burke knows most of the measures in the bill would not be enacted until the middle or even the end of next year,’’ Senator Cash said.

Big business welcomed the delay and said the government was seeking to ram through a “radical” bill that would give “unprecedented powers to interfere in the management of tens of thousands of Australian businesses” and drive-up costs for consumers and employers.

But ACTU secretary Sally McManus said the bill’s delay would inflict “more financial pain on Australian workers right at the time where they need support the most”.

Senator Lambie and JLN colleague Tammy Tyrrell have pledged to meet with impacted stakeholders in coming months before deciding whether to support or reject the IR bill.

United Australia Party Senator Ralph Babet said the IR changes had caused “massive confusion” and the crossbench needed more time to understand the consequences of the policy.

“The business community is screaming out for stability. Instead of increasing the legislative burden, the Labor government should focus on reducing red tape. We should focus on improving productivity in our economy,” Senator Babet said.

A spokesman for One Nation senator Pauline Hanson said “despite the Prime Minister’s pledge to lead a more accountable government, Labor had until now avoided a great deal of scrutiny into its legislative agenda with the support of the Greens and David Pocock”.