The chances of the Labor government passing its industrial relations omnibus bill by the end of 2022 appear extremely slim, as key Senate crossbenchers David Pocock and Jacqui Lambie say there’s not enough time to examine how major reforms to multi-employer bargaining rules could impact small business owners.
Minister for Employment and Workplace Relations Tony Burke tabled the 250-page long reform bill in the Lower House on Thursday, outlining how the federal government plans to overhaul key elements of the industrial relations system to boost wages and worker outcomes.
For small businesses, the centrepiece is Labor’s intention to expand the multi-employer bargaining system, which would allow workers across multiple small companies to band together while negotiating pay deals.
Labor says allowing more small business staff members to cooperate during negotiations will boost their prominence in the enterprise bargaining system, lifting wages and conditions for workers.
The provisions would also allow multiple business entities to team up during the enterprise bargaining process, a move designed to simplify what can be a complex and costly process for small businesses that broker deals on their own.
While the Council of Small Business Organisations Australia (COSBOA) partnered with the Australian Council of Trade Unions to support an expansion of the enterprise bargaining system ahead of the Jobs and Skills Summit, other business groups say the legislation could enable industry-wide strike action.
“We want enterprise bargaining to work,” Australian Industry Group CEO Innes Willox told reporters on Sunday.
“It is the cornerstone of our prosperity. And we need it to work. The multi-party bargaining will just bring, as it’s now structured, industrial chaos to Australia, for potentially not much gain.”
Labor is reportedly eager to pass its reform bill before December 1, saying the sooner it can enforce measures likely to lift wages, the better.
Pushing that timeline any further back means reforms would only come into effect early next year.
However, industry groups are now petitioning the Labor government for more time to digest the bill and its ramifications.
“What we have got to do is take the time on those other elements of the bill,” Australian Chamber of Commerce and Industry CEO Andrew McKellar told ABC News Breakfast on Tuesday.
“We don’t want to end up with unintended consequences that could be harmful to many smaller and medium-sized businesses.
While the Labor government can likely count on the support of the Greens, and opposition from the Coalition and One Nation, it must gain the support of at least one Senate crossbencher to pass its landmark legislation.
Now, business group concerns over Labor’s proposed timeline have filtered through to Independent ACT Senator David Pocock and Tasmanian Senator Jacqui Lambie of the Jacqui Lambie Network, both of whom are calling for more time to pore over the paperwork.
“There are a lot of welcome reforms in this legislation,” Pocock tweeted on Monday.
“But I have serious concerns about being able to properly review and consult on such huge changes to how we work in just a few weeks.”
Pocock has also expressed concerns that Senate estimates hearings taking place over the next few weeks could eat into time otherwise spent on examining the legislation.
Lambie shared similar views, telling Sky News on Monday that rubber-stamping the bill before Christmas is not on her agenda.
“Unions won’t be getting it all their goddamn way, I’ve had enough of them,” she said.
“Getting this through before Christmas, I doubt very, very much.”
SmartCompany has contacted the offices of Senators Pocock and Lambie for comment.
Independent MP Allegra Spender — whose vote is unlikely to disrupt the bill’s passage through the House of Representatives — echoed those positions, calling on Prime Minister Anthony Albanese to “consult, collaborate, and consider” further.
The government’s rushed Industrial Relations Bill won’t get through the Senate this year and it shouldn’t be pushed through the House either. Prime Minister @AlboMP take this opportunity to consult, collaborate and consider. That’s the type of government we need. pic.twitter.com/yOnn0inQuw
— Allegra Spender (@spenderallegra) October 31, 2022
“The government shouldn’t rush industrial relations changes,” she added.
“Remember Work Choices? Good reform needs both business and the unions on board. Otherwise, we’ll have a bitter and damaging fight.”
For his part, Albanese has indicated Labor intends to pass legislation boosting wage growth “as soon as possible”, but remains open to “constructive discussions with anyone who’s willing to have them.”
“We’re continuing to engage with business,” he told reporters on Monday.
“We’re continuing to engage with unions and with the crossbench and across the Parliament. But there’s already been substantial consultation. We’ll continue to work that through.”
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
