The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 - the most significant industrial relations change in nearly 20 years – passed through the Federal Parliament this morning, after being introduced a mere 5 weeks ago with no prior consultation.
The South Australian Business Chamber CEO Andrew Kay says: “This is a disappointing outcome. We, along with many other business representatives, have expressed that this Bill was never fit for passage and should not have been rushed through. It will negatively impact business and economic growth in South Australia.
At a time when businesses are already significantly burdened with escalating energy prices, rising inflation and interest rates, they will now be forced into lengthy and complex negotiations and may face industrial action.
“The new changes to industrial relations are significant and will change the rights of those people running Australian businesses. It is vital that business owners and operators understand their new obligations,” said Mr Kay.
Despite the amendments made by Senator David Pocock, including an increase from 14 to 19 employees as the threshold for small business exemption from multi-employer bargaining, and conciliation for working arrangements, the new laws remain detrimental to businesses and the economy. These benefits have been offset by the Greens’ amendments, which further complicate enterprise bargaining.
Mr Kay continues — “In South Australia, 94% of employing businesses are small businesses. Now, businesses with 20 or more employees can be forced to adopt workplace arrangements and pay rates that they have not negotiated themselves. These agreements will stifle innovation and leave no room for employers to reach an agreement with their employees on mutually beneficial outcomes.
“Changes to pay secrecy laws, flexible work arrangements, and multi-employer bargaining agreements that are contained in the new laws, are of great concern for business. Australian businesses will lose their competitiveness and flexibility, and in turn, their appeal to potential investors. Rather than securing jobs, these changes will place jobs at risk.”
The South Australian Business Chamber General Manager, Policy, Advocacy and International Services Kendall Crowe says: “Given the complexity of this legislation, there are many unknowns. What we do know is there is nothing to show the new laws will lead to productivity improvements that are the key to delivering sustainable improvements in wages.
We have seen no evidence to show how this legislation will lead to increased wages in the short term as promised by the government and unions. We do know it will significantly increase costs for business, resulting in more time spent in arbitration and reduced productivity.”
As we have done since 1839, the South Australian Business Chamber as the Chamber of Commerce and Industry in South Australia will support the business community. We will support employers to navigate and manage these changes and have dedicated workplace relations specialists that can provide the advice they need.
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MEDIA CONTACT
Anthony Caldwell
Manager – Marketing, Media, Communications
Phone – 0421 508 075
Email – Anthony.caldwell@business-sa.com
