Yahoo Finance 'Laws will punish': Workplace overhaul blasted as 'dangerous'
The Federal Government has unveiled its industrial relations overhaul in a series of reforms it claims will support businesses and employees through the recovery, but unions aren’t convinced.
Industrial Relations Minister Christian Porter on Wednesday tabled the bill in Parliament, which includes changes to rules around casual employees, the criminalisation of wage theft and a new “part-time flex” employment category.
However, unions have warned that plans to allow businesses to cut workers’ conditions are “dangerous and extreme”.
Under the Supporting Australia’s Jobs and Economic Recovery Bill, the Fair Work Commission can approve agreements even if they do not meet the Better Off Overall Test (BOOT) under “exceptional standards”.
What’s the Better Off Overall Test?
As it stands, the BOOT means the Fair Work Commission can only approve enterprise agreements if they improve workers’ positions as compared to industry minimums.
Porter’s bill would see the BOOT requirement waived for two years in what the Australian Council of Trade Unions (ACTU) has dubbed the worst attack on workers’ rights since the Howard-era WorkChoices scheme.
“WorkChoices allowed employers to cut wages, and this proposal will do that as well,” said ACTU secretary Sally McManus.
“When Workchoices was introduced employers rushed out to cut wages, the same will happen if this law passes. Some workers are still stuck with WorkChoices pay cuts some 13 years later.”
While Porter said the bill was being tabled following engagement with both employer and union groups, McManus said the Government had never raised this element of the bill in its months of consultations.
“This was not the spirit of the talks with employers and the Government, this is not about us all being in this together,” McManus said.
“Working people, essential workers, have already sacrificed so much during this pandemic, these proposed laws will punish them.”
‘Everyone’s worse off if a business fails’: Porter
However, Porter has argued that “everyone's worse off if a business fails and hundreds of jobs go”.
Employer groups have previously argued the BOOT has delayed enterprise bargaining agreements, claiming it’s too difficult for businesses to meet complex award agreements.
The Australian Chamber of Commerce and Industry also welcomed the changes, describing them as critical to keeping businesses in business.
“Part of the problem is that the rules and procedures for collective bargaining are eye-wateringly complex and agreements are too often delayed or outright rejected on technical grounds. This makes employers too gun shy to use them,” Pearson said.
“Getting an agreement approved is often harder than negotiating it – with many of the current rules the very definition of bureaucratic red tape.”
Prime Minister Scott Morrison had flagged the changes in November, warning there were “not enough” enterprise bargaining agreements.
“They're just too difficult to get approved, both employers and unions have recognised that this system needs fixing through this process,” Morrison said.
“And the government has identified various issues that need to be addressed and will be. The test for approval of agreements should focus on substance rather than technicalities.”
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