Workplace relations legislation rushed through Parliament this week allows the Federal Government to favour businesses with union-backed enterprise bargaining agreements (EBAs) for procurement opportunities.
However, the legislation includes a change that allows the Government to choose businesses who have an EBA in procurement and Commonwealth grant selection processes.
The changes will apply across various sectors including construction, health and community services, and were pushed through Parliament with no inquiry and two days of debate.
“This bill specifically allows, and encourages, the Federal Government to discriminate against businesses that don’t have union-backed EBAs in procurement and grant decisions,” Australian Chamber of Commerce and Industry CEO Andrew McKellar said.
“The Government has successfully ensured that the unions will have business owners over a barrel.
“Non-union businesses will be faced with an awful choice – run the risk of losing contracts and grants, or plead with union bosses for some awful agreement.”
A hit to businesses when they’re down
CCIWA Chief Executive Officer Will Golsby said the new laws would add to growing cost and productivity pressures facing businesses.
“It’s inevitable that these changes will make service delivery and major projects more expensive,” he said.
“It tips the scales dramatically and does nothing to improve Australia’s lagging productivity and high-cost business environment.”
Similar union-centric procurement policies have been introduced in Queensland and Victoria.
Golsby said these costs would have a broader economic impact and flow through to consumers.
More regulatory burden damages investment appeal
Golsby said these reforms, on top of previous workplace relations changes, would hurt Australia’s reputation as a safe place to invest.
“This is particularly damaging for WA, where our economy is driven by major private sector investment to deliver big projects now and into the future, including the energy transition to reach net zero by 2050,” he said.
“We are in a competition with the rest of the world for global capital and the raft of Federal workplace reforms introduced in recent years will make it harder for WA to attract that investment.
Golsby said long-term certainty and clarity was needed to incentivise investment.
“These reforms place additional risks of more disruption to vital projects like we’re potentially seeing in the Pilbara, where the mining industry is facing its first strikes this century,” he said.
To find out more about what we stand for, visit our Policy and Advocacy page.
