Labor’s IR policy could be a $20 billion tax on business which will not create a single job but will destroy thousands of jobs.
Attorney-General and Minister for Industrial relations, Christian Porter, said Labor’s plan to require casual workers and contractors to be paid multiple leave entitlements and make those portable as they move from job to job represents a massive financial hit on business which will drive up the costs of employment, kill jobs and increase the costs of day-to-day goods and services.
"It’s clear what Anthony Albanese is saying he would do; what is totally unclear is how he will do it and who will pay for it?" the Attorney-General said.
"Either he is proposing that businesses are hit with a new tax of up to $20 billion after a pandemic and while recovering from the COVID-19 recession; or he is proposing to cut the pay of all casual workers by up to 25 per cent. These are the only two options.
"As with Labor’s policies at the last election, this latest effort appears to be nothing more than a thought bubble from Labor’s IR spokesman, Tony Burke, with no detail and no consideration of economic or financial consequences. The policy is emblematic of Mr Albanese’s leadership – lazy and lacking substance.
"According to media today Mr Albanese is promising to "work with states and territories to develop portable leave for all Australians in non-permanent positions who presently do not receive sick leave, annual leave or long service leave." But there is no detail - no costings – no idea.
"Australia is moving out of the biggest economic crisis it has faced since the Second World War and its biggest health crisis in 100 years. What employers and employees need now is an industrial relations framework which is stable and encourages them to work together to rebuild and create more jobs, not proposals for massive job-killing taxes on struggling Australian businesses.
"Mr Albanese has had almost two years as Opposition Leader, as has his industrial spokesman, to come up with detailed, sensible policy; but all they are offering is the most costly promise in the history of industrial relations in Australia with no detail and no analysis of the impacts.
"His proposals, if ever implemented, would create the unfair outcome where greater leave provisions would be held by casual workers than permanent workers enjoy. Every permanent employee knows that in most circumstances if they choose to leave their job for another, they lose accrued leave entitlements. Under Labor’s plan those permanent workers would be worse off than a casual worker who chooses to move from job to job.
"The cost of paying annual leave, sick leave and long service leave for the first time in Australian history to all casual employees and independent contractors the Attorney-General’s Department estimates would be $20.3 billion dollars per year.
"If a casual worker loses the 25 per cent casual loading which is paid in lieu of leave entitlements, he or she would lose on average $153 per week, or $7,953 per year. That is a massive pay cut for these workers.
"On wages, Labor has been calling for tougher action against employers who underpay or, indeed, steal, workers’ wages. The Government has proposed stronger penalties and, for the first time, a criminal penalty for the most serious cases of wage theft. Yet Labor’s policy offers nothing to deal with this problem. Not a single word on how they would deal with this issue, all we know is they oppose the Government’s Bill which deals with it.
"He says he’ll legislate a fair test to determine who is a casual worker. What’s the test? Again, no detail, just vague promises. It is Labor’s failure to insert a definition in the Fair Work Act that has created confusion for employers and employees. Our reforms fix this. After two years as Leader, why can’t Anthony Albanese tell Australians what his definition of a casual worker would be?
"The only thing that is clear from Labor’s policy is that it still can’t stand to have independent, statutory agencies like the Registered Organisation’s Commission and the Australian Building and Construction Commission holding rogue, militant and lawless unions to account.
"Labor claims to be looking out for workers, but when he has a real chance to participate in actual reform designed to give precise answers to known problems in the industrial relations system, Mr Albanese vacates the stage. This announcement from Anthony Albanese is designed to help one job – his own. He is simply putting out thought bubbles from the unions in the hope that this buys him more time to salvage his career.
"The Government’s proposed reforms will be debated in coming weeks in the House and senate. They will:
- give casual workers a stronger consistent pathway to shift to permanent work with their employer - if they choose to. Labor oppose this.
- give part-time workers greater opportunity to work extra hours - if they choose to. Labor oppose this.
- give all workers greater protection from wage underpayments and wage theft with stronger civil penalties and, for the first time, criminal penalties for wage theft. Labor oppose this.
- give workers greater opportunity to benefit from the higher wages that flow from more enterprise agreements which pay on average 69 per cent more than Awards. Labor oppose this.
"The Morrison Government demonstrated its support for both employers and employees throughout the COVID-19 pandemic with JobKeeper designed to keep them connected and championed industrial relations flexibilities to help business survive and keep people employed.
"Labor seems incapable of grasping the challenges facing Australia as we move into the economic recovery post COVID. Labor is stuck in the ideological battleground of history, pandering to its union-controllers who provide the Labor Party with millions of dollars in donations paid for by hard-working Australians.
"If Mr Albanese is serious in his claim to lead Australia at one of the most critical times in its history, he needs to show respect to Australians and be honest with them about exactly what he is proposing and what the ramifications will be."
Authorised by Christian Porter, Liberal Party of Australia, Parliament House, Canberra