Aaron Violi (Casey, Liberal Party) Share this | Hansard source

Complexity, confusion, cost—that is what the Fair Work Legislation Amendment (Closing Loopholes) Bill will deliver for employees, businesses and Australian consumers. This bill has many components, and I want to address the issue of wage theft first because it's vitally important. The coalition has zero tolerance for any exploitation of workers, including underpayment of wages and entitlements by any employer. Deliberate rip-offs of workers are not acceptable and should have serious sanctions, but these should only apply to intentional conduct, not mistakes. Reforms around wage underpayments and theft should also come with reforms to simplify the workplace system to avoid underpayments in the first place. The Fair Work Act is already over 1,200 pages long, and this bill seeks to add over 200 extra pages to it.

If those opposite were serious about wage theft, then why did they vote down the coalition's proposal to legislate a wage-theft provision in the Fair Work Act in 2021? Why won't they separate wage theft out of this bill? All in this House want Australians to have meaningful employment where they are rewarded for their effort, but the truth is this legislation goes far further than just wage theft. It covers everything: changes to the gig economy; changes to casual work; the reintroduction of the Road Safety Remuneration Tribunal; same job, same pay policy; changes to rights of entry for union officials; redundancy packages; and implementing the agenda of unions—and that's just to scratch the surface.

They've presented us with this huge bill, which has created uncertainty, with over 800 pages in legislation and explanatory memorandums. It will impact over 260,000 independent contractors in building and construction alone, let alone the many other corners of our economy. The one certainty we have is that this bill will make life tougher for Australian small businesses by increasing their costs, their complexity and red tape. As I said before, we all want employees to find meaningful and well-paid employment. However, this has to be done while also improving productivity to keep inflation down. What Labor doesn't seem to understand about running a business is that, for employers to have to meet these costs without improving productivity, businesses will have to push up prices for their consumers. These changes will impact many sectors, from road freight to the gig economy, resulting in further inflation, driving up prices for Australian families and businesses that are struggling with the rising cost of living.

Don't take just my word for it. The minister himself has admitted that this legislation will push prices up and drive inflation up. He has confirmed that all Australians will pay more for everything—groceries, electricians, movies, UberEATS, everything—when we can least afford it. Even the department confirms it will cost businesses more. The department's solution for increased costs on businesses is that they can pass that extra cost on through 'higher prices for consumers or third-party businesses'. The minister doesn't see business as the job creators of this country. Labor do not see small business and recognise their contribution not just to our national economy but to local economies, local communities and local workforces. Small business have outright rejected these proposed changes, but Minister Burke and those opposite have abandoned small business.

The complexity in this bill will be impossible for a small business to cope with. The increased red tape is something small business simply don't have the resources, time or money to invest in trying to understand and implement. They want to spend their time doing what they do best, running their local bakery, their farms, their building companies, their manufacturing operations, their cafes or their shops. Business are already managing increased costs of supply, energy, rents and wages, and we don't need small business owners having yet another reason to turn away from what they do best. I am deeply concerned that this added pressure amidst this cost-of-living crisis is going to send small business and small business owners into a very dark place.

I am concerned for the tradies, the casual workers, the farmers and the small business owners and employees in my community. As the representative for the electorate with the highest number of tradies in building and construction in the country, I know that independent contracting is critical to the industry's structure and to the successful execution of construction work. Master Builders Australia has described the IR changes as like 'tieing a rope around the hands of tradies and creating loopholes for the union movement to increase their stranglehold on the building and construction industry'. This bill will jeopardise the rights of independent contractors to carry out work on their own terms and for self-employed tradies to be their own boss. This bill takes us back in time and not in a good way. It's about reversing decades of history in which Australia moved away from centralised wage fixing to pay and conditions based on productivity and reward for effort. It's about eroding choice and flexibility for individuals who want to work in their own time and on their own terms. It's about putting constraints on business and employers wanting to expand or manage their operations in their own way. Labor thinks governments know what's best for business. The fact is no-one knows what's best for business and their employees than the business owner and the employees themselves. Australians need to be empowered to make their own decisions, not constrained by further red tape.

When we discussed the last round of industrial relations changes, those opposite were very happy to quote from respected organisations like the Business Council of Australia and the ACCI. However, they don't seem as keen to do that this time. So let's see what the BCA and ACCI have to say about this legislation. The Business Council of Australia has spoken out against Labor's reforms. Chief executive Jennifer Westacott said:

Australians should have safe jobs, well paid jobs and rewarding jobs, but the government's radical shake-up of the industrial relations system will not deliver that …

"These changes will create confusion and extra costs for consumers, make it harder to hire casual workers and create uncertainty for employing anybody.

"Any government that's serious about cost of living would not do this.

I echo the words of Jennifer in this House today: the government should not be adding cost and complexity when people are struggling to pay their bills and put food on the table.

The ACCI chief executive, Andrew McKellar, said the legislation will be bad for productivity, those wanting to be their own boss and consumers struggling with the cost of living crisis. He said:

"The only winners in this are union chiefs. The only loophole this bad legislation is looking to close is that of plummeting union membership …

"This is a continuation of a radical industrial relations agenda, and we are again bracing ourselves for further risky changes to our workplace system.

"The government has not made a case for these changes. It has not been able to outline how this legislation will enhance productivity, lift wages, or make it easier to generate more jobs.

"If you're in labour hire or want a casual job, prepare for unemployment. If you are a service provider and want to advertise online, prepare for unemployment."

Let's hear what Sally McManus, the ACTU president, has to say about casuals:

"I'll just say … one step forward at a time …

… in the union movement, we would love to go 100 per cent now and have a situation where you could just say that they couldn't put people on casual in the first place.

Could you be more out of touch with how a business is run?

I was fortunate to work at a great company called Yarra Valley Snack Foods. We grew that business from seven employees to over 130 when I left 6½ or seven years later. Casuals allowed us to expand, because when you have demand at Christmas you need to bring people on for three months. When you pick up a new contract, you might want to add a new afternoon shift and you need casuals to help with that. But guess what? Once those sales increase and they're at a sustainable level, those casuals become full-time employees when you can do it sustainably. For the union movement and a government run by the union movement to think that casuals should not exist in our economy is an absolute disgrace. It will send us backwards. This is another step, as Sally McManus has said, on their journey to getting rid of casuals altogether. And that's before we even talk about seasonal tourism businesses in the Yarra Valley, or farmers that need support for two to three months when they are picking their crops. They don't have work for a full 12 months. They need casual employees.

Industrial relations reform is, without a doubt, one of the most important of all the economic reforms required to make Australia more productive and competitive. The focus of any industrial relations reform should be to make us more productive and to create more sustainable and secure high-paying jobs. It should make our nation more prosperous, but this is not what we see in this bill. In the words of the National Farmers Federation:

These changes would impale Australia's productivity at a time when it desperately needs a shot in the arm.

The NFF is particularly concerned about new rights of entry without notice, which would allow union representatives to enter farms unannounced. The farms in my community of Casey, including my family's farm, are more than just a workplace. They are often the family home. The farm is the kids' backyard, and Labor's bill will allow union officials to waltz in, unannounced, at any time. We must ensure workers aren't being exploited. But under this bill, union officials only need to suspect a case of underpayment to allow them free entry to private farms.

The coalition has attempted to engage on our concerns with this bill. Those opposite refused our proposal that this 278-page bill be referred to a parliamentary committee for the proper scrutiny it requires. They've refused our request for more time to study the details of this bill, which was only made public on Monday. Labor has avoided scrutiny throughout the entire process of crafting this bill, having forced those who were consulted to sign legally binding non-disclosure agreements to prevent them discussing the bill's contents. When a government goes to such efforts to avoid scrutiny and examination, there can only be one conclusion: it's a bad bill, and they know it. As I said at the start of my speech, this bill will deliver complexity, confusion and cost to small businesses and to all businesses, and those costs will be passed on to consumers, as the minister said, at a time when we can least afford increased costs. Families are struggling to put food on the table, and this government is focused on the union agenda to make Australians pay more for their food.

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