The Australian Retailers Association (ARA) is lashing out as the Federal Government passes “concerning” components of its Closing Loopholes Bill.
Of key concern is the closing of the labour hire loophole, which - according to the Minister for Employment and Workplace Relations Tony Burke - will stop companies underpaying workers.
However, ARA CEO Paul Zahra said the expediency of new labour hire regulations and union delegate rights without proper scrutiny is concerning.
“These contentious measures should have had the opportunity to be scrutinised by the Parliament because as it stands, they will add cost, complexity and disruption for businesses – at a time when many simply can’t afford it,” Zahra said.
“The labour hire reforms threaten productivity, increase complexity and limit the creation of secure jobs. They desperately required more scrutiny and consultation as part of the broader Bill.
“While we respect the role that union delegates play in the workplace, employers shouldn’t be expected to write blank checks to fund union activities.
“Retailers are already navigating the implementation of the largest set of workplace reforms in decades – many of them are small businesses without sufficient inhouse resources, expertise or legal support.”
To help pass the legislation, the Minister for Employment and Workplace Relations Tony Burke and Albanese Government secured support of Senate crossbenchers Jacqui Lambie and David Pocock.
Other key components being passed include criminalising intentional wage theft, introducing industrial manslaughter as a new criminal offence, anti-discrimination measures for victim-survivors of family and domestic violence, and closing the loopholes in which large businesses claim small business exemptions during insolvency to avoid redundancy payments.
With criminalising wage theft, there will be a maximum possible penalty of 10 years imprisonment and maximum fines of up to $7.8 million.
“This sends an almighty message around workplaces around the country,” Burke said. “In particular, some of these big companies that employ very young people to say: you have an obligation to pay people properly.
“Behind every one of those stories is not simply an amount of money that someone's been underpaid, but a first experience of work. That is appalling. That is not about your rights being respected.
“Just pay people properly. It's always been a crime for the worker to steal from the till. Now, it'll be a crime for the employer to steal from the worker.”
Speaking on the labour hire loophole, Lambie condemned big companies not paying people what they deserve.
“I've had enough of having 12 different lots of payments for hosties out there when I get on a plane, knowing that they're not getting paid the money that they should be paid. And they're trying to get through to put bread and milk on their table.
“I'm sick and tired of miners doing the same damn job where some of them [make] less than $30,000 a year doing the same job. Enough is enough.
“And they've got massive profits, these bloody little buggers, and they're not doing the right thing. Well, now you're going to be made to do the right thing. That's what you're going to be made to do from here on in from today.”
Aside from the labour hire loophole, the ARA welcomed all the other measures being passed, and also commended the government’s plan to split the Bill into two, with other components on hold until early next year. This includes legislation regarding casual workers and those in the gig economy.
“Many of the more significant aspects of the Bill which are not supported by the ARA – such as changes to casual conversion rules – will be held until next year,” Zahra said. “The Government must ensure it consults closely with industry groups to avoid unintended consequences for businesses.
“We are pleased the Government heeded calls to bring forward some of the sensible, common-sense measures allowing more time to debate some of the controversial measures.”
Zahra said it will now be vital that the proposed changes are incorporated with the least possible cost and disruption to business.
“For small businesses, who are often entirely focused on financial survival, significant workplace changes can be very difficult to prepare for,” he said. “These businesses are already navigating the largest set of workplace reforms in decades.”