The Business Council is concerned by some of the recommendations in the House of Representatives Standing Committee inquiry into the Future of Work and the risk they present to increasing union power by stifling innovation, which will only further entrench Australia’s lagging productivity, impacting the cost of living of all Australians.
The Report’s recommendations risk allowing unions a disproportionate say in how AI technology could be implemented in a business through additional consultation and workplace obligations.
Business Council Chief Executive Bran Black said that while the BCA recognises the need for sensible guardrails, the recommendations in this Report risk union overreach and duplicative regulations, which would deter investment in technologies like AI due to more red tape.
“Harnessing the power of technologies like AI is imperative to fixing sluggish productivity growth and we need sensible regulations that safeguard communities, while also fostering a culture of innovation,” Mr Black said.
“At a time when we have significant productivity challenges, this union-backed approach will simply add more red tape and slow down technology take up – ultimately this is bad for workers and bad for business.”
Mr Black said it is clear unions seek a broad power to veto the introduction of new technologies, including AI, and that this must be resisted, with the preferable approach being to strike a balance that affords workers appropriate safeguards while enabling business to invest, innovate and drive productivity outcomes.
“Supporting workers through technological advancements is a positive in the workplace that can lead to productivity improvements which drive higher wages, worker wellbeing and job satisfaction.
“The case has not been made for further increasing entitlements and business obligations in national employment standards and awards as recommended by the report.”
“Recent IR law changes are already making workplaces less flexible and less productive. If we start allowing unions to dictate decisions about workplace technology, then we will become a less attractive place to invest and do business.
“Other jurisdictions have flagged that cumbersome regulation on AI and digital technologies is a productivity and competitiveness sapper – Australia has to learn from these experiences and find the right regulatory balance that still allows us to be an AI leader.”
