From dance instructors to boilermakers: Labor says non-compete clauses are holding back wages

Assistant minister for competition Andrew Leigh says in the US, UK and EU ‘agreements between competitors’ such as not to poach workers or to suppress their wages are ‘cartel behaviour, and illegal.’ Photograph: Mick Tsikas/AAP

Labor has accused franchise businesses of cartel-like behaviour for agreements not to poach each other’s employees, arguing fast-food workers could earn more if allowed to change jobs more easily.

The assistant minister for competition, Andrew Leigh, will give a major speech on Thursday arguing reforms aimed at preventing practices that stop workers changing jobs could help workers win bigger pay rises.