Developers and the broader business community are pressuring the senate to reject industrial relations reforms that would enable multi-employer bargaining, fearing it could seriously impact the cost of labour and project delivery.
Labour shortages in the past two years, coupled with supply chain issues and skyrocketing costs have hamstrung the development sector as it struggles to digest a huge pipeline of work.
Industrial relations minister Tony Burke moved to exclude commercial building and construction industries from the multi-employer bargaining amendments included in a swathe of industrial relations reforms passed in the House of Representatives this week.
More than 150 amendments to Australia’s Industrial Relations framework have been passed through the lower house and are due to go to the Senate later this month.
Burke told the house the decision to exclude the sector was “not taken lightly”.
“We do not believe it is appropriate or necessary to extend multi-employer bargaining to this industry at this time,” Burke said.
ACTU national secretary Sally McManus welcomed the move after calling for an overhaul to industrial relations to enable companies in the same industry to enter into a single enterprise bargaining agreement, which she said would deliver efficiencies and fairer pay rises.
But Ai Group chief executive Innes Willox is calling on the senate to reject the Bill.
“Too much is at stake to support the rush to pass this Bill,” Willox said.
“The government has proposed to exclude a specific type of ‘building and construction work’ from the multi-employer bargaining regime ... the exemption is extremely narrow. There are a raft of building and construction industry activities that aren’t covered by the carve out, including for example all civil, metal or engineering construction work. A much broader exemption is required.
“Given the risks involved, the Bill as it stands should be rejected by the Senate. At the very least, the Senate should be allowed much more time to consider and propose amendments that would identify and rectify the numerous flaws in the Bill.”
Willox said the expansion of multi-employer bargaining would reduce productivity, investment and jobs.
The safe passage of the Bill through the upper house hinges on the swing vote of ACT independent David Pocock who has called for the Bill to be split in two.
Pocock has reportedly pitched a deal to wipe the Australian Capital Territory's $100-million public housing debt in return for a vote that could clinch the deal and deliver the IR reform Bill.
