Feature
Issue No. 35 - June/July 2007
Small business the loser in IR debate
by Mr Shayne Bakewell
Industrial relations is looming as a critical point of difference for the Federal Government as it attempts to combat Labor's resurgence in the polls under Kevin Rudd.
Labor has outlined a relatively detailed plan for its industrial relations reform. Unfortunately, that IR reform package is not business friendly, and is specifically unfriendly to small business.
To combat Labor's “Howard's extreme IR laws” campaign, the Federal Government has hastily introduced a number of changes to make its industrial relations policy more palatable to voters. The most significant of these changes (noted in the table at the bottom of the page) is the re-introduction of a “No-Disadvantage” or “Fairness Test” for workplace agreements against the relevant award.
It is appalling that businesses, having just adjusted to the new rules, now have to re-evaluate their use and application of workplace agreements as result of hasty political manoeuvring. These changes were announced on Friday, 4 May 2007 to be effective Monday 7 May 2007!
How do the policies compare for business?
To make things simple, we have tabled a snapshot of the Howard Government's amended workplace laws (from 7 May 2007) and compared those to the proposed Labor position.
Would there be any change for my business?
From a small business perspective, a change of government and the successful introduction of the Rudd IR reforms would change things (just when you were getting used to the new system!). They are:
•You will have to comply with the unfair dismissal laws for managing employees.
•You cannot offer AWAs anymore.
•You must “bargain in good faith” with a union where an employee (being a union member) at your business requests a collective agreement. If you do not bargain in good faith, a regulatory body may become involved.
•The award system will become more powerful and relevant in the setting of wages.
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