‘Show us business case for IR laws’: Rex Patrick

A Senate crossbencher says business has not made the case for the ­Coalition’s industrial relations bill, expressing concern workers will not be able to properly scrutinise enterprise agreements.

Senator Rex Patrick. Picture: Tricia Watkinson

Key Senate crossbencher Rex Patrick says business has not made out the case for the ­Coalition’s industrial relations bill, expressing concern workers will not be able to properly scrutinise enterprise agreements and employers will have too much power to reject requests by casuals to be made permanent.

Senator Patrick took the lead during crossbench negotiations with the government over the failed Ensuring Integrity Bill, but said he would not engage on the latest industrial relations changes unless the Coalition locked in two of the three crossbench votes it needs to get the proposed laws passed.

Industrial Relations Minister Christian Porter is expected to try to initially secure the support of One Nation’s Pauline Hanson and Malcolm Roberts. If successful, the government would ­require the backing of one of three remaining crossbenchers: Senator Patrick, Stirling Griff or Jacqui Lambie.

Senator Patrick said he was concerned that workers might not get a proper opportunity to scrutinise new enterprise agreements given changes to pre-­approval requirements and the proposal that the Fair Work Commission generally approve new deals within 21 days.

He also echoed Labor and union concerns that employers had too much scope to reject ­requests by casuals for permanency and workers could only seek arbitration of the refusal if the employer agreed.

Mr Porter said he was open to “sensible, evidence-based suggestions that can improve the bill”, but it is understood the ­government is opposed to casual workers being able to automatically access arbitration when ­employers reject their request for permanency.

Senator Patrick highlighted the recovery of the ASX 200 to ­almost pre-COVID levels compared to continuing low wages growth. “I can see big business doing OK while workers are trapped in a world of wage stagnation,” he said. “On the face of it, the most concerning issue is the sharing of wealth and prosperity by all of those involved in economic activity.

“I see workers paying tax. I see companies avoiding it. I see workers having JobSeeker pulled out from them and I see business taking JobKeeper and adding it to their profit line and bonus calculations. I am not convinced with this bill the case from business has been made out.”

Meanwhile, ACTU president Michele O’Neil told a Senate ­inquiry hearing on Friday that the Morrison government’s promise that the changes would deliver more shifts and higher wages was a “cruel fantasy”.

In evidence to the inquiry, the Attorney-General’s Department said the bill did not change the ­requirement that employees must have “genuinely agreed” to an enterprise agreement. If specific steps prescribed in the bill were not taken, employees must still be provided a fair and reasonable ­opportunity to decide whether or not to approve an agreement. It said the proposed 21 working day approval timeframe for the commission would not prevent it from taking the appropriate time to ­assess more complex agreements.

While “some stakeholders” said an employer could avoid ­offering casual conversion under the bill’s reasonable grounds provisions, the department said the provisions were based on the Fair Work Commission’s casual conversion model clause, which was developed over four years.