Employers say proposals could stifle innovation, increase red tape
Business groups across Australia have expressed strong opposition to recommendations in the new inquiry report on the digital transformation of Australian workplaces.
The Business Council of Australia (BCA) and the Australian Chamber of Commerce and Industry (ACCI) have criticised the report's proposals, arguing that they could stifle innovation, increase red tape, and undermine productivity.
BCA Chief Executive Bran Black warned that the report's suggestions — particularly those calling for greater union involvement in the implementation of artificial intelligence (AI) and automated decision-making (ADM) tools — could lead to excessive regulation.
Black stated that while sensible regulations are necessary, the report risks enabling unions to veto the introduction of new technologies, thereby hindering AI adoption.
"At a time when we have significant productivity challenges, this union-backed approach will simply add more red tape and slow down technology take-up — ultimately this is bad for workers and bad for business," he said in a statement.
Similarly, ACCI Chief Executive Andrew McKellar argued that the recommendations take an overly simplistic view of AI, with one-size-fits-all regulations that could harm businesses already grappling with complex industrial relations laws.
"The recommendations would create heavy-handed obligations on AI deployment in workplaces and undermine genuine efforts to raise productivity in Australia," he added.
The House of Representatives Standing Committee on Employment, Education, and Training's The Future of Work report was tabled on Tuesday, outlining 21 recommendations aimed at protecting employees amid the digital transformation of workplaces.
Some of its amendments include introducing reforms to the Privacy Act 1988 and the Fair Work Act 2009 to protect worker data and privacy.
Among the other recommendations in the report are ensuring greater consistency and modernisation of relevant legislation to enhance employee protections, as well as reviewing modern awards for high-risk industries to ensure workers are protected where AI has significantly transformed job design.
While business groups have strongly opposed the report, unions have largely supported its focus on strengthening worker protections. The Australian Council of Trade Unions (ACTU) welcomed recommendations for stronger privacy safeguards, including measures to limit intrusive employer surveillance and protect workers' personal data.
ACTU Assistant Secretary Joseph Mitchell emphasised that the union aims to ensure that AI adoption benefits all Australians, not just large corporations.
"The adoption of new technologies should benefit all Australians, not just big business," Mitchell said. "Workers deserve greater transparency over AI adoption and the collection of personal data by their bosses."
Australia's Future of Work report comes amid growing calls on employers and governments across the world to regulate the use of AI in workplaces following the emerging risk from the technology's rapid adoption over the past years.
According to the report, the adoption of AI and automated decision-making tools has sparked concerns across both business and union sectors. These include:
Amid these risks, the Australian Institute of Company Directors (AICD) revealed that formal policies are not being developed quickly enough for the growing use of AI in workplaces.
According to the AICD last year, only 18% of organisations that have adopted AI have developed policies around it within six months of implementation. On the other hand, another 38% of AI-implementing firms have no plans to establish formal policies at all.
For organisations seeking to establish an AI policy, the Corporate Governance Institute offered a 10-step guide: