'Economically ignorant': Government urged to resist union push for further workplace reforms

ACTU's proposals criticised by ACCI

'Economically ignorant': Government urged to resist union push for further workplace reforms

The Australian Chamber of Commerce and Industry (ACCI) is calling on the federal government to resist the union push to introduce a third wave of workplace reforms.

According to the ACCI, the raft of policies planned by the Australian Council of Trade Unions (ACTU) is "economically ignorant."

"Disappointingly, there was not even an attempt to link the proposals to any productivity increase," said ACCI chief executive officer Andrew McKellar in a statement.

One of the proposals that McKellar had an issue with was ACTU's plan to further introduce changes to the independent contracting system in Australia.

"The ACTU is keen to steady the dramatic dwindling of union membership we have seen across the last two decades by unionising independent contractors," McKellar said.

The recent workplace reforms previously introduced provisions for employee-like workers performing digital platform work in the gig economy. But McKellar said these recent changes were only a "stalking horse for the imposition of minimum standards orders on all independent contractors."

"Make no mistake, where the ACTU references 'freelancers,' in reality, it is talking about all independent contractors," he stated.

More union proposals slammed

McKellar also called out ACTU's plans on employers' rights in industrial disputes, the abolition of non-compete clauses, and a review of the casual loading. According to ACCI CEO, ACTU's plan involves significantly curtailing employers' ability to respond during industrial disputes, leaving them more vulnerable to sabotage.

"Clearly it is the aim of unions to undertake industrial action whenever and wherever without any fear of reply by limiting the only response action available to employers," he said.

On non-compete clauses, McKellar pointed out that restraint clauses are "rarely enforceable."

"There is already a legal presumption that they are invalid, and they can only be successfully used by employers when they are protecting legitimate business interests such as internal client lists that an employee could easily take to a competitor if not for such a clause," he added.

Abolishing junior pay rates

Meanwhile, employers also expressed concern about ACTU's plan to push the government to scrap junior pay rates. The Ai Group accused ACTU of "scurrying to the government" to abolish junior pay rates if the Fair Work Commission (FWC) doesn't.

"The latest demand betrays a flagrant disregard for the impact of lost opportunities for young Australians trying to get their foot on the employment ladder," said Innes Willox, chief executive of Ai Group, in a statement.

McKellar also pointed out that it is "concerning" that ACTU would seek to undermine the FWC's discretion on junior pay rates.

"Youth unemployment is already much higher than the general population at 9.8%; the ACTU should not be seeking to circumvent the Commission – parties will be filing actual evidence about the proposals instead of talking points," McKellar said.