Employers warn of more strikes, fewer jobs in 'flawed' IR bill

Australia's newest Secure Jobs, Better Pay bill is not sitting well with employers, who warned that the proposed legislation is "fundamentally flawed."

"The proposed changes to Australia's workplaces introduced to federal Parliament today risk taking the country down a path of more strikes, fewer jobs, centralised decision making and less trust within our enterprises," said Innes Willox, chief executive of the employer association Ai Group. "The legislation is fundamentally flawed and needs to be rethought and reworked. Given its implications for our economy, employers and workers, this process cannot be rushed or be the subject of political trade-offs."

The bill, which was introduced to Parliament on Thursday, proposed changes related to bargaining and workplace relationships, including increasing access to single and multi-employer bargaining. It also established new rights to strike in support of multi-employer bargaining. However, a safeguard clause is in place that requires conciliation before industrial action is taken.

Read more: Safeguards to curb militant unions in the new IR bill

Despite this safeguard, however, Willox said the change is designed to "enable widespread strikes and other industrial action" and is a fundamental concern for employers. Willox also raised concern over the proposed expanded authority of the Fair Work Commission to arbitrate the content of workplace agreements, which he said will "only encourage unions to make unreasonable demands and risks, taking us back to a system of centralised setting of wages and conditions."

Willox said the lack of safeguards will ensure multi-employer bargaining won't affect sectors or employers already capable of bargaining at the enterprise level. He also said that the proposed changes to flexible working arrangements would expose employers to litigation, the changes to the Better Off Overall Test would risk creating more problems, and a wider range of problems on the "practical workability and fairness" aspects of the bill.

Workplace minister Tony Burke, in introducing the bill, said it was the government's attempt to get "wages moving." However, Willox said that wage increases do not come with a "union gun being held to an employer's head."

Read more: Employers warn anew against multi-employer bargaining

"To pass this bill after a rushed and unsatisfactory process which, in the end, has unfortunately catered to outdated and radical union demands would be a disaster for workers, small and large business employers and our economy," Willox said, adding that the bill does not contribute to productivity or growth.

"Industry-wide bargaining and a centralised industrial system belong to an era of tariff walls, fixed currencies, picket lines and secondary boycotts," he said.

Employers are looking forward to further consultations, Willox said, adding that the deadline to finalise the legislation by Dec. 1 is "neither helpful nor appropriate."