The significant changes to workplace laws, starting on Monday, risk holding Australia’s historically low productivity back even further at a time when the economy is already stalling, according to the Business Council.
Business Council Chief Executive Bran Black said the changes, including the new right to disconnect and the new definition of a casual employee, would further hamper the economy.
“These laws put Australia’s competitiveness at risk by adding more cost and complexity to the challenge of doing business, and that means less investment and fewer job opportunities,” Mr Black said.
“At a time when productivity has flatlined and insolvencies are increasing, we can’t risk making it harder to do business with added red tape.”
Mr Black said the new changes – coming on top of the raft of recent changes that are already in place, including intractable bargaining and same job, same pay – risk placing more pressure on businesses at the worst possible time.
“Combined with the recent intractable bargaining and same job, same pay changes, we’ve now risked creating an environment in which it’s harder to employ people.”
“I hear constantly from businesses large and small that the burden of increased workplace red tape is harder and harder to bear.”
“We want to see more workplace arrangements set at the enterprise level to drive productivity and lift participation, and less heavy-handed government intervention with a one-size-fits-all approach that simply creates more red tape, rule complexity and cost.”
Mr Black also warned the recent multi-employer bargaining decision of the Fair Work Commission regarding New South Wales coal mines should have businesses on high alert.
“What’s alarming about this decision is that it essentially says all of the businesses in any sector can be roped together and subject to the same determination because of these new laws,” Mr Black said.
“Businesses should be on edge about this precedent, because it will slash productivity and undermine enterprise level engagement between employees and employers.”
“If we continue to normalise these top-down mandates across every sector, it will mean less scope for competition between businesses and higher prices for Australians.”
