Workplace Relations Minister Tony Burke will introduce Labor's Secure Jobs, Better Pay bill to parliament with the government warned it has a fight on its hands to convince employers to back what's being described as "a seismic shift" to the nation's industrial relations laws.
Mr Burke will introduce the bill with a promise to modernise Australia's IR laws and "get wages moving".
Delivering on election commitments to abolish the Australian Building and Construction Commission and take steps towards reducing the gender pay gap, the bill will also empower certain workers, including parents with school-aged children, carers and over 55s, to negotiate more flexible hours.
If employers refuse a request for roster flexibility, they face the threat of forced arbitration before the Fair Work Commission.
Employers and unions have this week been given confidential briefings on the details of the legislation which the government wants passed by Christmas.
The most contentious element is a plan for industry-wide, or multi-employer bargaining, which Labor believes will help fix a broken, and outdated enterprise bargaining system.
Since the system was introduced by the Keating government in the early 1990s, the share of the workforce covered by EBAs has plummeted — meaning more workers are being paid at lower award rates — and wages growth, more generally, has flatlined.
Employer groups agree the system is not working but Andrew McKellar from the Australian Chamber of Commerce and Industry said multi-employer agreements would be a backward step, potentially leading to more industrial action and job losses.
"It's a major concern for business because we really could see a seismic shift in the way in which bargaining is structured in Australia," he said.
"What we don't want to see as an outcome which will take us back towards industry-wide pattern agreements, where it's one size fits all.
"Potentially, this bill goes too far, it will get the balance wrong."
ACTU Secretary Sally McManus said she was not surprised that employer groups were opposing the plan.
"Those are the same people who've denied workers' pay rises for 10 years," she told the ABC.
"So if they think there's a law that's going to make it easier for workers to get pay rises, they're of course going to oppose it."
Tuesday's budget contained bad news for workers, forecasting real wages would go backwards next year before a slight rise in 2024, largely because of sky-rocketing inflation.
Ms McManus said Labor's proposed IR changes had the "potential" to get wages moving in the right direction but conceded it would not be a "quick fix".
"If it's successful, I think it needs to be measured in the medium term," she said.
"It's not a quick solution, but it's an absolutely essential structural solution."
More flexibility for workers
While many of the details are under wraps, the government has revealed it's expanding flexible rostering rights to eligible workers including parents with school-aged children, people with a disability, carers, over 55s, and domestic violence victims.
Under the changes, if a worker requests flexibility, employers would be legally bound to try and reach an agreement or face arbitration at the Fair Work Commission.
Mr Burke said while many requests for flexible work are granted by employers, some requests are "unreasonably refused" and under existing laws, those workers have no right of review.
"Women still carry the main responsibility for caring work and are more likely to request flexible work arrangements," he said in a statement.
"In order to access the flexibility they need to manage work and care, they are often forced to drop out of the workforce, or to take lower-paid or less secure employment.
"This plays a major role in widening the gender pay gap."
