Small business ramps-up IR fight over same job, same pay reforms

Small business leaders have warned that the use of casuals, contractors and locums could be restricted under Labor’s same job, same pay IR reforms.

Workplace Relations Minister Tony Burke has described the industry-wide campaign against same job, same pay reforms as “plain loopy”. Picture: Martin Ollman/NCA NewsWire

The peak small business lobby group – used by the Albanese government and unions to justify last year’s multi-employer bargaining laws – has warned that same job, same pay industrial relations changes could hit smaller ­employers using casuals, locums and contractors.

The Council of Small Business Organisations Australia has told the Department of Employment and Workplace Relations that small businesses are “very concerned” about broad language being used by the government to sell its proposed IR shake-up.

In his submission, COSBOA chair Matthew Addison told the government it should “refrain from progressing legislative ­reform without further collaborative consultation”.

“We seek for the government to ensure it constructs the legislation to address the problem that has been identified. We note that we do not believe the identified problem has been adequately ­articulated in consultations to date,” Mr Addison said.

“Small business are very concerned, based on the broad language being used, that government will capture a very wide range of business circumstances. The environments of small business evolve very rapidly with different styles of business emerging to provide workers and the business an ability to be innovative and productive.”

Former COSBOA chief executive Alexi Boyd resigned in January following a backlash over the group’s role in the government’s claim business backed its multi-employer bargaining changes.

Following the arrival of new chief executive Luke Achter­straat, COSBOA has joined forces with industry groups to fight Labor’s same job, same pay labour hire reforms.

COSBOA has raised concerns about impacts on hairdressing ­salons that rent out chairs under agreements between owners and hairdressers. Other “scenarios of concern” include locums, short-term workers, casuals, contractors, experts, surge labourers and temporary staff.

Former COSBOA chief executive Alexi Boyd with ACTU secretary Sally McManus ahead of last year’s jobs and skills summit. Picture: Gary Ramage/NCA NewsWire

Mr Addison said “there are many situations where a business may be paying a different rate due to circumstances such as the temporary nature of the work or a difference in experience”.

Newcastle salon owner and Australian Hairdressing Council chief executive Sandy Chong said same job, same pay could undermine her ability to pay more ­experienced staff what they ­deserved. Ms Chong, who was told by the department that salons renting chairs would not be impacted, urged against a “blanket approach to any workplace”.

“I have employees who have been with me for 40 years … for someone who has been with you for a lot of time with a lot of ­experience, do they get paid the same if someone has just joined you for five minutes?” Ms Chong said.

Despite government claims its reforms will be limited and targeted, industry bosses were not won over at a union-employer meeting hosted by Workplace Relations Minister Tony Burke in last week.

A spokesman for Mr Burke, who has panned an industry-wide multimillion-dollar campaign as “plain loopy”, said the government was “elected on a promise to get wages moving – to do that we need to close the loopholes that are undermining wages”.

“That’s what our next set of workplace relations reforms is all about. One of the key things we want to do is close the labour hire loophole. Labour hire has legitimate uses in providing surge and specialist workforces – and that will continue to be the case,” the spokesman said.

“What we’re concerned about is the labour hire loophole, which companies deliberately use in order to undercut the agreements they’ve made with their workers.”