Article by Dan Jervis-Bardy courtesy of the West Australian.
The Federal Government’s planned industrial relations changes are a “disastrous rewriting” of labour laws that will trigger the collapse of small businesses, the peak mining body is warning.
The Minerals Council is urging the Government to dump the “fundamentally flawed” legislation which it claims will harm the economy — in particular the mining sector — and add to costof-living pressures on families.
The lobby group’s boss, Tania Constable, will issue the warning when the Federal parliamentary inquiry into Labor’s “closing loopholes” legislation holds its first public hearing on Tuesday, in Sydney.
Labor’s Bill is designed to combat the undercutting of wages and conditions for workers, including through criminalising wage theft and minimum standards in the gig economy.
The most contentious element is the “same job, same pay” provision. It would require businesses to pay labour-hire workers at least the same as direct employees doing the same work.
Despite Labor’s assurance that they would not be targeted, the Minerals Council is adamant service contractors used by big miners — including cleaners, caterers and IT support — could be roped into the new system unless they can secure exemptions through the Fair Work Commission.
“Small local businesses will be competing on wages and entitlements with some of the biggest companies in the world, rendering many unviable,” Ms Constable will tell the committee, according to a draft of her opening address supplied to The West Australian.
“The only road out of this nightmare scenario will be litigation through the Fair Work Commission, at the company’s own expense and time.
“Each company will need to satisfy the commission that they shouldn’t have been captured.”
Ms Constable will tell the committee the legislation presents a “roadblock” to efforts to seize the opportunity from the burgeoning critical minerals industry. “In summary, ‘closing loopholes’ is a slogan that masks a disastrous rewriting of Australia’s labour laws that will only see businesses close down,” she will say. “It will damage the economy.”
Ahead of the hearing, Workplace Relations Minister Tony Burke challenged the legislation’s critics to use the inquiry to “defend” the labour hire loopholes that undercut job security.
“Most businesses don’t use the loopholes that this Bill closes,” Mr Burke said. ”It’s high time organisations heading up this misleading campaign defended the loopholes they want to keep open.”
Australian Council of Trade Unions president Michele O’Neil accused the employer groups of campaigning against the legislation because their members relied on the loopholes to drive down wages and conditions.
The Senate committee will travel to Perth on Friday for its second block of hearings.