There are many changes on the way courtesy of the Albanese Labor Government that are both complex and lacking in logic.
The fact that they are being pondered at time when families are struggling with cost of living and rising interest rates makes it even more perplexing.
I was drawn recently to an article in the News Corp papers written by Tania Constable who is the CEO of the Minerals Council of Australia.
Tania rightly points out the Albanese Labor Government’s workplace changes will lead to greater job insecurity, lower wages, and more time-consuming red tape especially for small
business.
Labors so called ‘Same Job Same Pay’ crusade is in a nutshell a motherhood statement that hides what can only be called a Greek tragedy.
It is bad for business big and small, bad for workers, bad for farmers, bad for tradies and bad for sub-contractors.
As Tania points out this policy will create dis-harmony in workplaces, drown small business in red tape and compliance, restrict workers whose preference is to choose how and when they work, put bonuses and entitlements at risk and give union officials unprecedented access to the sensitive personal information of workers.
One of the most worrisome of these changes for small business is that if they contract into a larger business, they will be required to pay their workers the full rate of pay, entitlements and bonuses like a gym membership that is paid to workers in the larger business.
Now you may say well why not.
But the legislation says this deal would apply to all workers, no matter their age, experience skill or qualification as a sub-contractor.
This is a one size fits all arrangement for wages that pays a worker with six months experience the same as someone with six years’ experience, an apprentice electrician the same as a far more experienced one just because they work at the same site.
I mean honestly where is the incentive to work harder if the one who does not is entitled to the same as you.
For small businesses there is the added burden of compliance, and fines if they inadvertently get it wrong.
Tania Constable calls it a massive handbrake on economic activity when we can least afford it and an enormous unnecessary burden on small business in red tape costs.
Tania also points out that mining companies are dependent on a healthy ecosystem of mining contractors, small businesses, and mining communities.
They need this ecosystem of businesses to be nurtured, entrepreneurial self-sufficient and vibrant, not burdened with an avalanche of red tape and compliance that will put them out of business.
‘Same Job Same Pay’ sounds and looks wonderful when you say it aloud or hear it read back to you.
But what it really is, is a dis-incentive to work hard, a dis-incentive for business to employ more and expand, and it hurts the economy.
I will sum this up by giving the final word to Tania Constable CEO of the Minerals Council of Australia: ‘Same Job, Same Pay creates a perverse, un-Australian outcome, where reward for effort and experience is sacrificed on the altar of equality.’
