Unions will be given ‘police powers’ on wage theft: businesses claim

Unions will have more power than the police to search businesses for confidential information under the Commonwealth’s industrial relations reforms, business groups have claimed.

Unions will have more power than the police to search businesses for confidential information under the Commonwealth’s industrial relations reforms, business groups have claimed.

Leading business groups have written an open letter directed at Prime Minister Anthony Albanese warning the government of the unintended consequences of the proposed laws.

A spokesman for Workplace Relations Minister Tony Burke confirmed that the government was looking at potential changes to ensure wage theft is uncovered “sooner” but said no final decision had been made.

“The government has been consulting as to whether there should be some technical changes to rights that already exist within the Fair Work Act to make sure wage theft is uncovered sooner. Those consultations with business and unions are ongoing and no decisions have been taken,” they said.

Business Council chief Jennifer Westaco. Picture: Adam Yip

The potential changes have sparked fears within the business community with claims the reform could extend to allowing union officials to conduct snap payroll inspections if they suspect there has been wage theft.

The letter claims the Commonwealth has bowed to “a long list of union demands.”

“We are alarmed that your proposals will deliver on a long list of union demands rather than supporting Australian workers,” the letter said.

“The business community’s united view is based on information provided in the government’s own limited consultation papers.

Minerals Council of Australia CEO Tania Constable. Picture: Nigel Hallett

“We are today urging the government to be clear with the Australian public about exactly what it plans to do ahead of the release of the proposed legislation.”

Business Council of Australia chief executive Jennifer Westacott feared the laws will be a “complete overreach”.

“We respect the role of unions, but what is being proposed is not justified and is a complete overreach from the government,” she said.

“We are calling on the government to make public all of the information around these changes so we can have an informed public discussion.”

Thousands of CFMEU union members march in a protest a glass door was broken and windows were pounded by fists and hands, Brisbane. Picture: Lyndon Mechielsen

Minerals Council chief executive Tania Constable, who co-signed the open letter, said the proposed changes will allow a “gross invasion of privacy”.

“These reported changes to workplace law will give union officials more powers than police to enter businesses and gain access to the sensitive personal information of workers,” she said.

“It is a gross invasion of privacy that will send a shiver up the spine of small business owners across the country. Without notice, union officials will be able to turn up at your front door and demand access to your business and personal records.

“The message from the Albanese Government to businesses is clear: We don’t trust you to run your business and pay your staff.”

Originally published as Unions will be given ‘police powers’ on wage theft: businesses claim