Christian Porter has dumped the most controversial plank of the Coalition’s industrial relations bill, which allowed Covid-19 affected employers to cut workers’ pay and conditions.
On Tuesday the attorney general and industrial relations minister presented an amended version of the omnibus bill to the Coalition party room, removing the two-year exception to the better off overall test.
Despite the concessions, unions will shift their campaign to other objectionable parts of the bill, including flexibility of part-time hours and deregulation of bargaining they fear will remove procedural safeguards.
Unions reacted furiously when the bill was released in December, as the new exception allowing cuts compared with the award safety net had not formed part of roundtable consultations.
In December, Porter said the provision was “important” because it allowed “very distressed businesses” to forge pay deals that do “some good for those businesses”.
But labour law experts warned the clause would lead to pay cuts without the current requirement of “exceptional circumstances”.
In a statement, Porter defended the proposal as “sensible and proportionate” noting safeguards that the majority of employees would need to approve a pay deal, and the Fair Work Commission would have to judge that it is not against the national interest.
He said the decision to remove the clause demonstrates “the government’s continued willingness to listen and work constructively with all members of the crossbench”.
Porter challenged Labor, saying the move should “blow away the smokescreen [it had] been hiding behind to justify its opposition to the wider package of reforms”.
He claimed the bill will “deliver greater protections for workers, help to re-grow jobs and drive up wage growth”. Porter claims the bill will indirectly boost wages by encouraging employers to sign enterprise agreements.
At a press conference on Tuesday, Scott Morrison appeared to rule out revisiting the changes in future. “Once we go through this package, then that’s the package,” he said.
The Australian Council of Trade Unions secretary, Sally McManus, greeted the news by warning the government will now claim to have “fixed” the bill despite other “permanent changes that hurt workers”.
She cited changes to bargaining that mean employers no longer have to explain proposed pay deals to workers, the 21-day time limit for the Fair Work Commission that will force it to “tick and flick” pay deals, and the ban on unions who are not bargaining representatives from intervening in such cases.
1. Employers will no longer have to explain an agreement to employees
— Sally McManus (@sallymcmanus) February 16, 2021
2. Employers will not have to give employee a copy of the whole agreement
3. Employers don't have to tell workers they have started bargaining for a month
Unions also object to provisions for part-time employees to pick up extra hours at ordinary time rates, which they fear will increase work insecurity.
Employer groups are taking heart from the fact technical changes to the better off overall test will be retained, including a stipulation that the commission is not to consider hypothetical ways that workers could be disadvantaged by pay deals.
Australian Chamber of Commerce and Industry workplace relations director, Scott Barklamb, said the amendment was “disappointing for businesses and jobs” but he now hoped “scare campaigns” against the bill will end.
Australian Industry Group chief executive, Innes Willox, said the change “should clear the way” for the Senate to support the bill.
The independent senator Rex Patrick has called for it to be broken up, warning the government will struggle to get three of the five crossbench senators to agree.
Labor and the Greens oppose the omnibus bill, which makes widespread changes to casual employment, award flexibility bargaining between employers and employees, pay deals for new worksites, and criminalises deliberate and systematic wage theft.
The exception to the better off overall test had been a sticking point with all five of the crossbench senators, but it is unclear whether its removal will be sufficient to win support.
Senator Jacqui Lambie has warned the bill encourages casualisation and deprives long-term casuals of the entitlements of permanent workers.
Stirling Griff has said Centre Alliance also has concerns with the other clause that allows employers to use “the excuse of Covid” to change the location and duties of work.
