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Home Policy

Industry concerns over industrial relations reform

by Staff Writer
June 6, 2023
in News, Policy
Reading Time: 4 mins read
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The Minerals Council Of Australia (MCA) has joined members of the Australian business community to oppose the Federal Government’s ‘Same Job, Same Pay’ proposal, launching a national media campaign to raise awareness of the risks the collective believes are likely should the industrial relations changes be implemented.

Other than the MCA, those involved include the Australian Chamber Of Commerce And Industry, Australian Petroleum Production and Exploration Association, Business Council Of Australia, Council Of Small Business Organisations Australia, Master Builders Australia,, National Farmers Federation and the Recruitment, Consulting and Staffing Association.

The group said the change to Australia’s workplace relations regime will lead to lower wage growth and fewer jobs – compounding the plight of workers and families who are already doing it tough.

In a statement, the group said, “The ‘Same Job, Same Pay’ proposal does not mean equal pay for men and women. It does not speak of fairness and justice, as its name represents.

“It means by law, employers will have to pay workers with little knowledge or experience exactly the same as workers with decades of knowledge and experience.

“It means by law, you cannot earn better pay by working harder or longer, if your colleague does not share your ambition or work ethic.

The collective said the retrograde policy will deny Australian workers flexibility and the capacity to be treated individually and  deny them the opportunity to negotiate more pay for harder work.

The statement said, “‘Same Job, Same Pay’ will take away worker incentive and reduce productivity. This is not fair for workers or their employers. There is a better way, for better pay.

“These changes will make it more difficult for small operators to do business with big companies – rendering many service providers simply unviable – while putting significant constraints on companies wishing to expand, construct new projects and infrastructure, or simply manage their operations in their own way.

“Businesses of all shapes and sizes need the ability to ramp up and ramp down, as economic conditions require and as opportunities arise.

“Workplace rigidity will ensure these opportunities for growth will either go begging, or companies will be forced to endure a never-ending rollercoaster of hiring and firing as project development, construction and commodity prices rise or fall.

The collective said, “The Federal Government must put the interests of the community and the broader economy ahead of this overt pursuit of giving more power to unions; a quid pro quo for years of generous support from the movement.”

Industry response

MCA Chief Executive, Tania Constable, said,“How is it fair that someone with six months’ experience can demand the same pay as someone with six years’ experience?

“Our workplaces should be about fairness, reward for effort, and experience. Not a blanket approach that fails to understand that all workplaces are unique and worker ambition and values, varied. Employees should expect to be paid on their experience, skills and qualifications.

“This dangerous policy is just the latest in a long series of attacks on Australian businesses that have the cumulative effect of chasing away investment and jobs, hampering our economic recovery from COVID-19, and undermining Australia’s role in, and beneficiary of, a once in a multi generation clean energy boom.”

Australian Petroleum Production and Exploration Association Chief Executive, Samantha McCulloch, said, “The Australian oil and gas industry promotes fair and equitable pay and working conditions that reward effort and experience across the diverse career opportunities available in the sector.

“The industry is working tirelessly to provide Australian households and industry with reliable, essential energy but needs an industrial relations framework that supports operational flexibility and improved productivity to ensure competitive and affordable gas supply that is needed for Australia’s cleaner energy future.”

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