Businesses will be at risk of collapsing amid Australia’s tightening of workplace regulations, peak bodies warned.
“There is more volatility coming for Australian businesses, through the trade wars and increased global competition,” Andrew McKellar, CEO of the Australian Chamber of Commerce and Industry (ACCI), said.
“That is where our government’s focus urgently needs to be. Yet here we are again, ignoring the core issues, interfering in independent determinations, and keeping workforce regulation in the dark ages.”
McKellar’s comments come as the Labor government reiterates its commitment to protect penalty rates in awards, going as far as planning to restrict the Fair Work Commission from reducing penalty rates.
“In recent months, big business lobby groups in the retail, clerical and banking sectors have made applications to the Fair Work Commission to cut penalty rates of lower paid workers from awards,” Murray Watt, Employment and Workplace Relations Minister, said.
“If successful, these applications by employer groups would reduce the overall income of workers by thousands of dollars each year. In the retail case, the Albanese Government has intervened to argue as a matter of principle the wages of low-paid workers should not go backwards.”
Opposition Leader Peter Dutton had earlier called Prime Minister Anthony Albanese’s plans on penalty rates a “stunt.”
“The independent umpire sets the conditions. It’s been abided by from both sides of politics and we don’t propose any departure from the current arrangements,” Dutton said.
“What I do know though is that real wages have gone back under this government. Households have been in a household recession for seven consecutive quarters.”
Luke Achterstraat, CEO of the Council of Small Business Organisations Australia (COSBOA), said that tighter regulations will negatively impact small businesses, which employ over five million people in Australia.
“Red tape and complexity is undermining the viability of Australian small businesses. It’s not sustainable. We need to make sure our workplace system supports economic growth and productivity, job security, and fair opportunities for employees and employers alike,” Achterstraat said.
“In the retail sector alone, employers must navigate 994 different pay rates across 96 pages just to ensure their employees are paid correctly. It’s unworkable.”
Meanwhile, the Australian Retailers Association (ARA) emphasised that penalty rates will not be removed under its proposal, contrary to what the government and unions say.
“Unfortunately, government and unions continue to misconstrue what’s actually been proposed. Penalty rates will not be removed under our proposal,” Fleur Brown, Chief Industry Officer of the ARA, said.
“What’s proposed is that retail managers can opt into an annualised salary which provides greater income and financial stability and would see them on average $5,841.65 better off annually.”