Helen Polley (Tasmania, Australian Labor Party) Share this | Hansard source

I rise to speak on the Independent Contractors Bill 2006 and the Workplace Relations Legislation Amendment (Independent Contractors) Bill 2006. Can I first compliment and concur with those who have spoken already in this debate who are opposing this bill. I congratulate them on their contributions. Let us be blunt: these laws are just the latest attack by this arrogant government, by Mr Howard and Mr Andrews, on Australian workers. In even allowing these laws to be debated, they are sticking the boot in yet again and saying resoundingly and finally to workers, ‘You are on your own.’

This legislation will negatively impact on many workers and will add even more intricacy to the Howard government’s already extremely complex industrial relations legislation. Recently we have seen the government trying to back-pedal slightly on their unfair industrial relations changes. It is obvious that the Prime Minister is getting a whiff of an election year.

The Senate Standing Committee on Employment, Workplace Relations and Education report on this bill unanimously recommended that part 4 of the bill, relating to clothing outworkers, be removed completely. Part 4 of the bill will create a new category of worker—the contract outworker. This section of the bill will ignore the fact that outworkers would previously have been afforded employee like protections. It also has the potential to create confusion regarding the appropriate classification for outworkers. It would allow unscrupulous employers the opportunity to reclassify their workers and thus avoid awarding them any entitlements they would otherwise be entitled to.

With this legislation, the government are doing what they do best, and that is deceive. They are trying to create the impression that these laws will be beneficial for small business and contractors, but that is completely wrong. These bills seek to force genuine employees out of employer-employee relationships and create sham independent contracting arrangements which will reduce their entitlements, conditions and protections. Does that sound familiar? It is becoming increasingly obvious that this government’s preference is to simplify industrial relations by putting as many employees as possible onto Australian workplace agreements, with the Work Choices legislation, or turning them into contractors with these bills.

Contractors are an important part of Australia’s workforce and Labor recognises that. Contractors are versatile and diverse. It is true that many industries rely on the services of contractors. Estimates vary on exactly how many contractors there are in Australia—around 800,000 to two million contractors in 2004. This is a range of between eight to 20 per cent of the entire Australian workforce. Regardless of the final figures, that is a very large percentage of Aussie workers. Labor’s concern is that these bills will allow employers to designate certain types of employees as contractors simply for the financial advantage of employers.

The number of submissions received by the committee from all areas of the workforce indicates just how much concern there is about this legislation. As is typical of this government—we all know the history since 1 July last year; it continues to abuse the powers in this place and the committee system—the minister attempted to restrict the scope of the committee’s inquiry before it even began. As mentioned in the opposition senators’ report on the bills, the minister attempted to prevent consideration of how contractors and employees would be defined in the bill. Obviously, this is a fundamental aspect of the bill and could not be excluded from consideration during the inquiry. However, the Senate’s adoption of the Selection of Bills Committee report referring the Independent Contractors Bill to the committee had no limitations and thus the inquiry was allowed to continue unencumbered—surprisingly, even with the best efforts of this arrogant government.

Of particular concern regarding this legislation is the fact that all contractors will be treated the same. A submission to the inquiry from the Australian Workers Union stated:

Of the million Australians currently deemed ‘contractors’, University of Melbourne research suggests up to 40 per cent do all their work for one boss —they are ‘dependent contractors’ not ‘independent entrepreneurs’. A dependent contract is one where one party is not truly independent, and work under the contract is in reality performed in a similar way to work under a contract of employment. Compared to truly independent contractors these workers tend to be those who are more vulnerable in the labour force—they work in lower skilled occupations; are young; and female.

The AWU submission goes on to state that the bill is really designed to provide an opportunity for employers to designate employees as independent contractors and thereby reduce the entitlements of the employees and the financial obligations of the employers. The AWU said:

Protections under the legislation like under the WorkChoices legislation will not deter employers from such practices as the incentives will be too great.

As a result of this legislation, workers will be faced with the burdens of their own superannuation and workers compensation—burdens which usually, and quite rightly, fall on the employer.

These laws are just another nail in the coffin, compounding the Howard government’s extreme industrial relations legislation. They will override state based employee deeming provisions and unfair contracts legislation. This is yet another step in the Howard government’s seemingly never-ending crusade to wrest powers away from the states. The people who will be hurt by these laws are ordinary working Australians: electricians, drivers and cleaners. They are being hurt because of one man’s ideological agenda. What is perhaps even worse is that the laws target workers who are already in an inferior bargaining position and would already be starting off on the back foot. But that is becoming a habit of this arrogant government: it targets the people in society who require help the most.

Workers or small businesses who want to take further action against an unfair or sham contract will have to go through an expensive court process. That is not really an option for most workers who will be hurt most by this legislation, but that is just the way the government and employers want it to be. These laws will keep up the hurt for Aussie workers—the hurt that began with the unfair, extreme Work Choices legislation that Mr Howard did not believe was worth mentioning to voters before the last election. Perhaps it just slipped his mind. What cannot be allowed to slip our minds here today is the fact that these bills will dissipate protections and entitlements for workers who are already in an inferior bargaining position.

The AWU said:

By allowing contractors who are dependent on a single business for work to be ‘deemed’ as employees, industrial tribunals have ensured these workers have had access to superannuation, workers compensation and some legal recourse when treated unfairly. Under the legislation these rights are lost. Independent contractors will be by definition outside employment regulation and protections of industrial instruments such as awards, health and safety legislation, long service leave legislation and superannuation.

This arrogant government is intent on taking Australia down the low-wages, low-skills road. Under this legislation, independent contractors will be responsible for their own professional development.

Australia is in the grip of perhaps its worst ever skills shortage, but this arrogant government does not like to be reminded of that. The skills crisis that this government has created is holding back our economy, but still it make no moves to fix it. In fact, it is doing all it can to make it even worse by introducing legislation like this. This legislation will cause skills development and training levels to fall and will compound the already critical skills shortage in many industries.

In its submission to the inquiry, the Transport Workers Union of Australia said:

The unfair contracts provision of the Independent Contractors Bill envisaged a system which in a number of key respects is inferior to the current NSW and Queensland provisions which it will override.

Should we be allowing inferior legislation to be passed in this place? No, we most definitely should not. What is even worse about this legislation is that it will override any future state or territory owner-driver transport laws and also put at risk existing laws. We have seen more than enough bad legislation from this government. This is not just legislation; this involves people’s lives. Everything the Howard government is trying to achieve with these bills is wrong. Australians are dealing with more pressures than they ever have before—high petrol prices and rising interest rates at a time when housing affordability is at its lowest. All the while, Mr Howard is continuing his crusade to knock down wages, strip away workers’ conditions and eliminate entitlements. Enough is enough.

Labor are completely opposed to this bill but concede that we do not have the numbers in this place to stop this bad piece of legislation proceeding. As such, we will support the amendment relating to outworkers in the hope that it will take away some of the evils contained in this bill.