Matt O'Sullivan (WA, Liberal Party) Share this | Link to this | Hansard source

Yesterday the government finally shed light on its Fair Work Legislation Amendment (Closing Loopholes) Bill, or, more aptly, it should be called the 'closing down Australian business' bill. The government has yet to demonstrate exactly how these new radical industrial relations changes will grow the national economy and, critically, address the lagging labour productivity malaise under this government's watch.

We know that productivity has fallen by 4.6 per cent under this government. Everyone in the government has finally jumped on the productivity bandwagon. Even the Prime Minister has managed to say the word, referring to it 11 times at his recent Business Council of Australia dinner. The recent Intergenerational report mentioned productivity 370 times. At the same time, it mentioned the 'closing loopholes' bill and how it would potentially grow productivity precisely zero times. In comparison, the government's bill mentions productivity only twice in 284 pages. So where is this government's priority?

In his 16th and final appearance before a parliamentary committee, outgoing Reserve Bank Governor Dr Philip Lowe spoke about the risks of having continued low productivity in the economy. He said:

If that were to continue it would mean … real wage increases would be very difficult, and it would mean a smaller pie for government to provide the services that the community wants.

He said:

I think it's the No. 1 medium-term economic issue.

So how does this government respond to the labour productivity crisis? Does it seek guidance from the Productivity Commission on how it can improve labour productivity? Does it say to the business community, 'Come on a journey with us as we seek to enhance productivity and grow the nation's prosperity?' No, it didn't do any of this. Instead, with the economy at a fork in the road, the government thought that right now would be a great time to strengthen trade union involvement in the workplace, that somehow introducing crazy legislation to disrupt the industrial relations framework will grow economic prosperity for all Australians.

The bill that's going to come before the Senate in the next few days will do nothing more than indulge the pious hyperfixation of this government's traditional owners, the trade union movement, to ensure they remain appeased by the Australian Labor Party. Nowhere has empirical suggested that what the industrial framework needs right now is a radical shift in the rights of entry for trade union officials or reintroducing a discredited road safety remuneration tribunal. It's a solution looking for a problem, an analogue approach to a digital world.

The only problem it seeks to fix is a union problem—or, specifically, a lack of union membership. As Stephen Walters observed in the Australian Financial Review on 27 August:

A key challenge will be turning around our dismal productivity performance. Productivity is driven by investment and innovation and using the skills of workforces more effectively.

He said:

The gains usually come at the workplace level and are about working smarter, not harder.

In this context, why is the government rushing workplace changes that will be a drag on productivity and make the fiscal hill even steeper?

I couldn't agree more. Why indeed would they do that? Even the Minister for Employment and Workplace Relations admitted in his own media statement on 24 July this year:

Many casuals won't want a permanent job. If you're a student or just working a casual job to make some extra money, this change won't matter to you.

But here we are. This government has been desperately designing a feature in its legislation for a solution which even the minister admits won't affect many casuals.

The government has had a golden opportunity presented to it in this post-pandemic economic environment to seriously address where productivity gains can be found in the industrial relations system and in the broader economy. It could have scrutinised how to drive a more efficient enterprise bargaining system that would facilitate productivity gains or reduce compliance costs for businesses and cut the corporate tax rate, in turn driving better efficiencies and benefiting the economy. It could have reviewed the Fair Work Commission and examined the efficiency of its roles in assisting better productivity or sought to reform the personal income tax rates to give Australian families more money in their back pockets. But it didn't do any of this. Instead, enveloped by blind, puritan ideology, it simply rolled over and acquiesced to the demands of its traditional owners.

Instead, the government decided to take a page out of some of the utopian mythology playbook and go after a purported loophole in the labour hire industry—an industry that trade unions have always disliked simply because they can't derive trade union membership out of it. The Minister for Employment and Workplace Relations already admitted last week that the legislation will increase complexity for businesses, while consumers will see price rises because of the proposed changes to the gig economy. This completely ignores the fact that Australians are in a cost-of-living crisis.

Tinkering with the definitions of casual employment, or 'employee-like', will do nothing more than disrupt the industry unnecessarily—an important industry. It will cause uncertainty for employers and employees alike, and will only guarantee that there's a proliferation of regulations, compliance and red tape at the very time we should be reducing—trying to reduce—all these burdens on businesses. The Treasury model has concluded that what the Australian economy needs right at this moment is to have an expansion of trade union delegate powers, or rights of entry. Is that really what Treasury is saying? I don't think so!

The dust hasn't even settled on the government's first tranche of industrial relations changes, noting that one of the caveats of the Secure Jobs, Better Pay bill was that there would be a review of the operation of these changes happen within two years. But here we are, less than 12 months later, without that first bill being tested or its progress analysed, and the government is having a second crack at how it can further disrupt the economy during the midst of a cost-of-living crisis, rampant inflation, soaring interest rates and low productivity growth. As noted by the Productivity Commission in its five-year inquiry:

The workplace relations system has a fundamental role in driving productivity and wages, but needs repair to achieve those outcomes, including a greater emphasis on co-operation between parties.

Absent to date in this bill's formulation is any sense of cooperation or collegiality with key stakeholders.

Unlike this government's Labor predecessors, who knew the value of wisdom and working collegiately with the business community in progressing microeconomic reform, this government seems motivated by creating division. The Minister for Employment and Workplace Relations likes to boast of conducting multiple consultations with stakeholders in developing this bill but, let's face it, they're sham consultations. They're consultations for appearance's sake. This is even more apparent when the government says that this is the outcome of the bill they want and that they want to make it work for your business. Then they mock any dissenting voice from business and go about demonising the business sector when it raises legitimate concerns. No doubt, the minister is aiming for his photo to hang on the walls of the trade union hall of fame!

Put simply, this government is attempting a paradigm shift in industrial relations that fundamentally favours trade unions, an industrial base that represents around eight per cent of the Australian workforce in the private sector. Rather than trying to harmonise the workforce and grow productivity linked with sustainable wages growth it seems determined to ensure that the battle lines are drawn for the next wave of radical industrial relations changes. Well, I say to bring it on! That's because we're ready; we are ready to fight this, absolutely—lock, stock and barrel.