The federal government has rejected suggestions any moves to widen access to multi-employer bargaining will lead to more strikes and business shutdowns across the country, describing criticism as “breathless hysteria”.
Key points:
- Consultation on legislation allowing sector-wide pay deals will begin this week
- The Coalition has described the proposed changes as a “win” for unions
- The government is dismissing the criticism as “breathless hysteria”
Unions have been demanding the power to negotiate pay and conditions across multiple employers in the same industry at once, insisting it will lead to better outcomes for workers – particularly in small businesses, where they do not have the negotiating heft of staff in larger companies.
Labor committed to the idea during its Jobs and Skills Summit in Canberra last week, arguing the current industrial relations framework was exacerbating already sluggish wage growth.
The exact nature of any legislative changes remains unclear, with the government committing to further discussions with unions and business groups on the matter.
The Coalition has seized upon concerns it could allow workers from different employers to strike together, claiming that would crush small businesses.
Skills Minister Brendan O’Connor dismissed that argument, and said strikes were becoming less frequent.
“The decline in disputation globally is happening in every country, whether they have industry or multi-employer bargaining,” he told the ABC’s Insiders.
“The breathless hysteria about the massive disputation happening because we use a new vehicle to bargain is not borne out by the facts.”
Mr O’Connor was questioned about whether the right to strike action would be included in any legislation, replying that the government would look at all issues as part of its deliberations.
“We’ve seen collective bargaining halve in a decade, and that has led to the lowest wage growth of any decade in living memory,” he said.
“The legislation that we enacted when last in government did have a mechanism for low-paid bargaining across employers, but frankly it didn’t work.
“We need to try something better and more effective.”
The federal opposition remained unconvinced.
“Let me be very, very clear — Peter Dutton and the Coalition, we will fight this every step of the way if required,” Shadow Employment Minister Michaelia Cash told Sky News.
“The Fair Work Act does allow multi-employer bargaining, but that’s just it — you do not take strike action.
“So the only change in the legislation can be to empower the unions and allow the strike action to be lawful.”
Coalition accuses government of seeking to influence umpire
The opposition has accused the government of trying to influence the independent employment umpire, after it warned of plans to restrict the power of employers to scrap enterprise agreements.
Workplace Relations Minister Tony Burke sent a letter to the Fair Work Commission last week, signalling his intention to release new legislation limiting the power of employers to cancel workplace pay deals.
The move angered the New South Wales government, which is threatening to tear up its own agreement covering rail workers in the state amid ongoing industrial action
“For a minister in the government to write to the independent Fair Work Commission and seek to influence them in how they make decisions — that should deeply concern all Australians,” Senator Cash said.
“The role of a tribunal, the role of a court is to interpret the law as it stands, not as Mr Burke and Mr Albanese would like it to be.”
Mr O’Connor said his colleague had raised the issue before, and suggested the timing of the letter was a coincidence.
“The Fair Work Commission is independent, and the president and the commissioners will work pursuant to the Fair Work Act,” Mr O’Connor said.
“The government, I think as a protocol, was just foreshadowing our intent.”
