Ai Group urges overhaul of workplace laws

The Australian Industry Group has urged the government to take a substantive overhaul of the Fair Work regime to the election.

The Australian Industry Group has urged the government to take a “very substantive” overhaul of the Fair Work regime to the next election, suggesting it adopt a range of recommendations proposed by the Productivity Commission’s review of workplace laws.

It urged the government to tighten the range of items allowed to be included in enterprise agreements; remove clauses that restrict the use of labour hire and casuals; introduce an industrial instrument called the “enterprise contract”; and reduce Sunday penalty rates.

In its final response to the Productivity Commission’s 1229- page review of the industrial system released in December, the Ai Group warned Australia had become a “high-cost country” and there was a need to address the nation’s “productivity shortfall”.

“It is essential that the PC Review not become a wasted opportunity to achieve the necessary reforms,” it said.

“We urge the government not to be swayed by the inevitable union scare campaigns.”

Ai Group did not support some recommendations, including a proposal for an institutional shake-up at the Fair Work Commission, the establishment of an independent appointment panel for commissioners and the creation of a workplace standards commission to regulate awards and the minimum wage.

The industry peak body also proposed changes, including the repeal of right-of-entry laws allowing union representatives to meet employees in lunchrooms.

Workplace relations is likely to feature in the election, with Malcolm Turnbull signalling his willingness to campaign on union reform if key legislation remains stalled in the Senate.

The government is set to begin its stakeholder meetings next month on the Productivity Commission’s proposals and will introduce legislation to revive the Australian Building and Construction Commission as a priority when parliament returns next week.

Government sources told The Australianno decision had been made on the commission’s proposal for an “enterprise contract”, which would hand small to medium-sized businesses another way of modifying award conditions.