Business groups fume as proposed new laws bring sweeping changes to Fair Work Commission powers

Major changes to the way the Federal workplace umpire operates under a guise of efficacy have been blasted by industry groups.

Headshot of Rebecca Le May
Rebecca Le May
The Nightly
New legislation touted as enabling the Fair Work Commission to work more effectively will also allow the Commonwealth to favour contractors with EBAs for Federal Government projects.
New legislation touted as enabling the Fair Work Commission to work more effectively will also allow the Commonwealth to favour contractors with EBAs for Federal Government projects. Credit: Supplied/TheWest

Major changes to the way the workplace umpire operates have enraged business groups, who have blasted them as “a sneaky move to aid union mates”.

The Albanese Government introduced legislation on Wednesday that it says will allow the Fair Work Commission to function more effectively, faced with a tsunami of AI-generated applications.

Under the proposed laws, the Commission will be able to dismiss unfair termination claims deemed frivolous, vexatious or with no reasonable prospects of success - and prevent the person from making further applications.

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But most contentiously, the Bill also includes “a measure to enable Commonwealth spending to support enterprise bargaining that promotes job security and fair conditions”, meaning certain contractors being preferred for Federal Government projects.

Workplace Relations Minister Amanda Rishworth said this would not be an obligation on the Commonwealth and would “sit alongside requirements to deliver value for money and high-quality, timely delivery”.

Workplace Relations Minister Amanda Rishworth announced the legislation on Wednesday - and the Housing Industry Association complained it was tabled in the House of Representatives “with no prior consultation”.
Workplace Relations Minister Amanda Rishworth announced the legislation on Wednesday - and the Housing Industry Association complained it was tabled in the House of Representatives “with no prior consultation”. Credit: Martin Ollman NewsWire/NCA NewsWire

Australian Chamber of Commerce and Industry chief of policy and advocacy David Alexander said the “new power to discriminate against businesses without union-endorsed arrangements” would “send a chill down the spine of the entire business community”.

“This is a sneaky move to aid union mates, but it will structurally shift contracting away from best-practice arrangements to inefficient union-friendly arrangements,” Mr Alexander said.

Stuart Collins, senior executive director of compliance and workplace relations for the Housing Industry Association, said the changes had significant implications for the sector, procurement frameworks, workforce costs and the capacity of builders to deliver badly-needed homes.

“The practical effect is to entrench enterprise bargaining as the only workplace arrangement the Government views as legitimate,” Mr Collins said.

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