Businesses criticize Labor policy of paying contractors the same as staff – ‘same job, same pay’ scheme labeled unfair
Major employer groups are uniting to oppose the next phase of the federal government’s labor relations reforms involving labor.
The government is trying to close a loophole that would allow companies that negotiated wages with their employees to pay contract workers less for the same work.
But the eight industry groups representing hundreds of companies said the “same work, same pay” reform is an outdated policy that denies contract workers the ability to negotiate “more pay for harder work.”
“By law, it means that employers will have to pay employees with little knowledge or experience exactly the same as employees with decades of knowledge and experience,” they said in a joint statement Monday.
“It means by law that you can’t earn better by working harder or longer if your colleague doesn’t share your ambition or work ethic.”
Industry groups say the “same job, same pay” reform will remove incentives for workers.
“Same job, same pay” will take away workers’ incentive and reduce productivity, they argued.
“This is not fair to employees or their employers.”
The employer groups are the Australian Chamber of Commerce and Industry, Australian Petroleum Production & Exploration Association, Business Council of Australia, Council of Small Business Organizations Australia, Master Builders Australia, Minerals Council of Australia, National Farmers Federation and the Recruitment, Consulting & Staffing Association .
“Claims that workers across the economy are paid less than employees are blatantly false,” said ACCI CEO Andrew McKellar.
‘On average, temporary workers earn more than their permanent colleagues.’
Tony Mahar, CEO of the National Farmers Federation, said the change would create bureaucratic red tape for farmers who “don’t have lawyers or an HR department.”
Tania Constable, CEO of the Minerals Council of Australia, said it was not fair that a worker with six months’ experience could demand the same wages as someone with six years’ experience.
Shaun Schmitke, acting CEO of Master Builders Australia, said the industry’s use of independent and subcontractors was a longstanding and legitimate scheme.
“The policy is not about closing a ‘loophole,’ but tying the hands of the building and construction industry at a time when communities are clamoring for more homes and projects to be delivered,” he said.
The workplace reforms should come into effect by the end of the year.