Scott Morrison eyes long-term IR changes to give employers, employees flexibility

Scott Morrison may extend changes to the Fair Work Act that make it easier for employers who qualify for JobKeeper to alter an employee’s hours or duties.

‘Industrial relations inflexibility in this environment will cost jobs’: Scott Morrison. Picture: AAP

Scott Morrison may extend changes to the Fair Work Act that make it easier for employers who qualify for JobKeeper to alter an employee’s hours or duties, warning that a rigid industrial relations system in the next phase of the COVID-19 recovery will cost jobs.

The prospect of legislating longer-term workplace flexibility rules sets up a potential showdown with the unions, with ACTU ­secretary Sally McManus saying on Friday that “ ‘flexibility’ has to mean something other than cuts to workers’ pay and conditions or, when the pandemic goes, workers are just left worse off”.

The federal government added temporary measures to the Fair Work Act in April that meant employees­ receiving the $1500 fortnightly JobKeeper payments could be directed to work less, take leave and change their duties, location­ of work and days of work.

The Prime Minister said on Friday­ that if “industrial relations flexibility” were withdrawn after September, when JobKeeper and the temporary Fair Work Act provisions­ are scheduled to end, people’s employment would be at risk. Mr Morrison said women and long-term casuals were particularly vulnerable.

“It’s important in talking about ongoing fiscal support that we also talk about ongoing industrial relations flexibility. Industrial relations inflexibility in this envir­onment will cost jobs,” he said.

The government has not decided if JobKeeper should be extended beyond September for the worst-affected industries, or if oth­er stimulus was more appropriate.

Australian Chamber of Commerce and Industry chief executive James Pearson called for the Fair Work Act changes to continue until at least March for employers who had accessed JobKeeper.

“We know there are many industries who will continue to be in distress beyond September, which is why the temporary changes to the act should be carried over for another six months,” Mr Pearson said. “The JobKeeper Fair Work changes show that a balance can be met, giving businesses flexibility in order to survive, while protecting the rights of the employees.”

Council of Small Business Org­anisations Australia chief executive Peter Strong wants the Fair Work Act changes extended indefinitely, pending the recommendations of Attorney-General Christian Porter’s industrial relations review being implemented.

“Without the ability to change duties and change hours reasonably, an employer will have no option but to make people redundant because they’ve already got a lower turnover and they won’t be able to remodel their business,” Mr Strong said.

“Say I own a panelbeater business, my part-timers and casuals have certain hours, now I find people­ aren’t driving as much, I find I need to change the hours they’re working. Currently I can do that quickly under the flexibility that’s introduced. If that’s removed, I won’t be able to do that so I have to put them off or I close.”

Ms McManus said the key to climbing out of the COVID-19 crisis was the government protecting current jobs by extending JobKeeper and having a plan “to ­create more good, secure jobs”.