Wesfarmers chairman Michael Chaney has voiced concerns over the Federal Government budget.
In an AGM address, he flagged issues around the multi-employer bargaining proposal and the lack of acceleration around simplifying award agreements.
Chaney started by welcoming the proposed changes to the Better Off Overall Test in enterprise agreements.
“[This] has worked not only against productivity improvements but also against the interests of workers themselves, because it has lost its original, intended meaning.”
He said he was pleased the Government is open to working in “good faith” to improve the legislation, and that enterprise agreements will have primacy, “so companies like Wesfarmers, with a history of bargaining and paying our workers above award, can continue to do so.”
However, Chaney outlined his concerns over the Government’s multi-employer bargaining proposal.
“This is significant industrial relations reform, and it should not be rushed,” Chaney said.
“While the Government is intending to incorporate some safeguards against unintended detrimental outcomes, we are concerned that it could result in more efficient, individual businesses being disadvantaged and a ‘lowest-common-denominator’ approach to wages.”
“It's unclear how the proposal drives productivity, which is always the foundation of wages growth.”
He then noted concerns over the Government’s lack of acceleration around simplifying awards agreements, "which underpin most Australians' employment arrangements."
“They're excessively complex and need to be made simpler and clearer, so they can be understood by everyone,” Chaney continued.
“Our taxation system is in similar need of reform. Designed for the last century, it is no longer fit-for-purpose for our changing economy.
“Many sensible reforms were detailed in the Henry Tax Report, which has, unfortunately, been sitting on the shelves for more than a decade now.
“Industrial relations and tax reform are essential if we are to continue to build Australia’s prosperity and provide the sort of social services we have all come to take for granted.”