'Missed opportunity': Employer association slams Secure Jobs, Better Pay Laws in new review

'Many of the changes were solutions looking for a problem and didn't address employers' concerns'

'Missed opportunity': Employer association slams Secure Jobs, Better Pay Laws in new review

The Ai Group has criticised the Secure Jobs, Better Pay Act as a "missed opportunity" to boost Australia's stagnant productivity in its submission to the legislation review.

Innes Willox, chief executive of the national employer association, stated that the industry believes the regulations introduced in the legislation will only make their challenges worse.

"Many of the changes were solutions looking for a problem and didn't address employers' concerns over the complexity and rigidities in our system that make running a business and employing people in Australia painfully difficult. On any reasonable assessment, the changes have taken us backwards," Willox said in a statement.

"The changes made by the Secure Jobs Better Pay Laws represent a missed opportunity to address the complexity of our bargaining system and improve the nation's stagnant productivity."

Willox made the remarks as the Ai Group lodged its submission to the review of the Secure Jobs, Better Pay Act.

According to Willox, the act's sweeping changes were "ill-conceived and rushed," adding that they were "counterproductive and will create disharmony in the workplace."

"The pendulum has swung too far away from employers," Willox said.

"Ai Group's submission proposes amendments to improve the workability of these changes and seek to restore a degree of balance to the system to reduce the adverse effects on businesses, employees and the community."

'Slow burn' impact of the legislation

Willox then urged the reviewers to look into whether the changes delivered improvements to Australia's "abysmally low productivity levels" due to its timing.

"The timing of the review and its rushed timetable mean that many of the difficulties that the amendments will undoubtedly cause have not yet had time to crystalise, much less be observed," he said. "It was always going to be a slow burn."

But this doesn't mean the reviewers cannot reach sensible conclusions on the impact of the legislation, according to the chief executive.

"Crucially, the review must consider whether the changes have meaningfully delivered improvements to our abysmally low productivity levels. This will be the real key to sustainably delivering 'secure jobs' and 'better pay,'" Willox said.

Secure Jobs, Better Pay Review

The Secure Jobs, Better Pay Review, which is conducted by Emeritus Professor Mark Bray and Professor Alison Preston, commenced in October this year.

According to the Australian government, the review is required to:

  • Consider whether the operation of the amendments are appropriate and effective
  • Identify any unintended consequences of the amendments
  • consider whether further amendments to the Fair Work Act 2009, or any other legislation, are necessary to: improve the operation of the amendments or rectify any unintended consequences that are identified.

The review is expected to report to the government in March 2025.