Labor set to secure penalty rate protections as Greens signal support

New laws preventing the workplace umpire from cutting penalty rates in exchange for higher pay are on track to pass federal parliament, after the Greens flagged support for Labor’s proposal.

Employment Minister Amanda Rishworth at a press conference at Parliament House on Thursday. Picture: NewsWire / Martin Ollman

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Labor’s penalty-rate protections are set to sail through the parliament after the Greens flagged their likely support for the proposal, as the Albanese government moves to capitalise on a left-­leaning Senate crossbench.

Employment Minister Amanda Rishworth on Thursday introduced legislation that removes the Fair Work Commission’s power to strip penalty rates from awards, usurping recent attempts by employer groups to remove the ­entitlement in exchange for higher pay.

The penalty-rate policy was unveiled by Labor during the federal election campaign, but was opposed by then-opposition leader Peter Dutton who described the change as a “stunt” and accused the government of interfering with the decision-making of the industrial umpire.

Opposition industrial relations spokesman Tim Wilson. Picture: NewsWire / Martin Ollman

On Thursday, Tim Wilson, the opposition’s freshly minted industrial relations spokesman, jettisoned that previous position, claiming the Coalition was yet to form a view on the legislation.

Still, he argued the change would exacerbate the “very serious problem” of rising unemployment, insisting the change “isn’t going to help”. Australia’s key jobless measure climbed to 4.3 per cent in June – its highest level in more than three years – but still remains low by historical standards.

Even without Coalition support, the legislation is expected to pass the Senate comfortably, with the Greens likely to back the measure. Together, Labor and the Greens hold 39 of the chamber’s 76 seats.

While noting that the changes were yet to be fully scrutinised by the Greens, the party’s workplace relations spokeswoman Barbara Pocock flagged she was supportive of the reforms. “We know these workers need protection, and they need more,” she said in Canberra, indicating the minor party would also pursue extra employee entitlements, including the right to work from home.

The Greens have previously agitated for stronger protections to penalty rates, with the party’s former leader Adam Bandt in 2017 introducing similar legislation to Labor that prevented the Fair Work Commission from cutting penalty rates.

Ms Rishworth seized on the Coalition’s indecision during question time on Thursday, asserting it was “disappointing” the Coalition had not made its position clear on the matter.

“They seem to be having a bob each way, on one hand supporting Australian workers, on the other hand talking Australian workers down,” she said.

Earlier on Thursday, she said the change would not apply retrospectively, meaning workers who have already lost the entitlement won’t have it restored.