Small business lashes senators over ‘insulting’ haste on IR bill

A small-business lobby group has criticised senators for ‘undermining the goodwill’ of businesses by allowing the passage of industrial relations legislation in the year’s last week of parliament.

Council of Small Business Organisations Australia chief executive Officer Luke Achterstraat. Picture: NCA NewsWire / Martin Ollman

A small-business lobby group has criticised senators for “undermining the goodwill” of businesses by allowing the passage of industrial relations legislation in the year’s last week of parliament, arguing the deal between crossbenchers and the government was struck without consulting employers.

In a letter to be sent to senators on Tuesday, the Council of Small Business Organisations Australia said the abrupt passage of the bill had been disappointing and “an insult to small businesses”.

“Small businesses do not ask the world of politicians, but they do expect to be consulted and for commitments to be honoured,” said the letter, signed by COSBOA chairman Matthew Addison and chief executive Luke Achterstraat.

The Australian understands COSBOA and other business groups were given no warning about the surprise deal struck between the government and crossbench this month, despite regular engagement with independent senators such as David Pocock.

“Never-before-seen amendments were announced via press conference in the morning and made law by the afternoon,” said COSBOA’s letter, distributed through the Senate president and party whips.

“A major opportunity has also been missed by the Senate with no attention raised in the ‘deal’ to address the major cause of underpayments in our country – Australia’s unreasonably complex workplace relations system.”

Labor agreed to split the industrial relations bill, with the legislation passed on the final sitting day of the year including a crackdown on labour hire, new rights for union delegates and criminalisation of wage theft.

This was despite a Senate inquiry into the laws having not yet reported back.

“The calling for a Senate inquiry into this radical IR agenda provided a glimmer of hope that a new way of developing small business policy was on the horizon,” COSBOA’s letter said.

“Unfortunately, the abrupt nature of the bill’s passage undermines that goodwill … We are disappointed that the Senate inquiry was not allowed to run its course, and dismayed that new elements were passed without any consultation.”

Mr Addison and Mr Achterstraat called for an impact statement that canvassed the cost of the legislation to small businesses, which COSBOA said was “disproportionately higher” than large companies that had the resources to adapt to the changes.

The second half of the government’s industrial relations reforms – which includes changes to casual employment and new gig economy provisions – are not expected to be dealt with until February, after the Senate inquiry reports back.

But COSBOA said in its letter the upcoming legislation needed to be shelved.

“Extremely harmful elements (are) still on foot, including the treatment of casuals, contractors, and the very definition of employment,” it said.

“COSBOA urges a major rethink of these elements.”

Mr Addison and Mr Achterstraat said the way the IR bill was treated by politicians would continue to “be a ‘litmus test’ of their empathy for small business and good policy process”.

Workplace Relations Minister Tony Burke said the bill included “practical reforms” that were critical to closing loopholes some employers used to undercut wages and conditions for workers.

But business groups criticised the minister for introducing 81 amendments on the final day of parliament to clinch a deal with the crossbench, arguing they “made a bad bill worse” and would “drive up costs” for businesses and consequently add to the cost-of-living crisis.