Article courtesy of the West Australian.
Controversial industrial relations reforms that would limit the use of labour hire is risking productivity growth, a fall back in real wages and a multibillion-dollar hit to the new economy, new research warns.
New modelling from the Centre for International Economics shows the implementation of Labor’s “same job, same pay” reforms would result in an economic hit of $13 billion and a decline in real wages of $373 a year.
The modelling, as reported by The Australian, conducted on behalf for the Minerals Council of Australia, which is leading and industry-wide campaign against the bill, also said the changes would dent productivity by one per cent, particularly across the mining and resources sector.
The MCA’s war of words over the proposed laws comes off the back of BHP claiming the reforms would cost jobs at the major miner and undermine the legitimate use of labour hire in the sector.
CIE’s report details scenarios of the productivity across the mining sector being lowered due to the rules.
“If the labour productivity shock is 5 per cent, the impacts are around 4.9 times bigger than those of the one per cent shock,” its said.
Employment Minister Tony Burke has flagged the Government would look at implementing a test within the law, which would carve out specialist mining needs from the laws.