Big labour market changes headed your way

By Zilla Efrat

The new Federal government looks poised to make wide-ranging changes to the labour market, some of which could affect your business.

Many of these proposed changes were discussed at the Jobs and Skills Summit in Canberra at the beginning of September.

Some will be good news for small businesses, especially those battling skills shortages. Others may not be. Some may never see the light of day. Others have already found themselves on the government’s “immediate actions” list and are currently being consulted on.

One priority is to establish Jobs and Skills Australia (JSA) – a new independent agency – to drive vocational education and training and provide advice to the government on key issues facing Australia’s labour market.

The interim legislation for this was introduced to the Parliament on 27 July 2022 in a bid to address Australia’s skills crisis and improve productivity. Following consultation, the government will introduce a new Bill to establish JSA’s permanent functions, structure and governance arrangements.

The government says JSA will have a tripartite approach with state and territory governments, industry, employers, unions and training providers, and promote a training system that meets the needs of employees, employers and the economy.

To deal with Australia’s skills shortages, the government will also boost the permanent migration program planning level to 195,000 in 2022/23. And, to accelerate visa processing and resolve visa backlogs, it will provide $36.1 million in additional funding.

It will also increase the duration of post-study work rights by allowing two additional years of stay for recent graduates with select degrees in areas of verified skills shortages. And, it will extend the relaxation of work restrictions for student and training visa holders until 30 June 2023.

Other priorities include expanding the number of fee-free TAFE places available, helping aged pensioners stay longer in the workforce and increasing the employment opportunities and improving career pathways of people with a disability.

It has also promised to make the Better Off Overall Test (BOOT) – which is meant to ensure that no worker is made worse off when an enterprise agreement is negotiated – simpler, more flexible and fairer.

However, one item on the “immediate actions” list has caused some concern. The government says it plans to update the Fair Work Act to give workers and businesses flexible options for reaching agreements, including removing unnecessary limitations on access to single and multi-employer agreements.

Multi-employer bargaining, which is only allowed in very limited circumstances, was reportedly pushed strongly by the Australian Council of Trade Unions (ACTU) in the run-up to the summit. But opposition leader Peter Dutton warned it would set Australia back decades and devastate small businesses.

Similarly, Innes Willox, CEO of the Ai Group, said: “There is real concern that such a proposal will risk exposing our community to crippling industrial action across crucial sectors of our economy.”

Meanwhile, Australian Chamber of Commerce and Industry CEO Andrew McKellar commented: “While the Chamber remains open to considering sensible changes to multi-employer bargaining, we would be very concerned if this became a ploy to unionise small business, leading to increased industrial action.”

One business organisation that supported multi-employer bargaining was the Council of Small Business Organisations Australia (COSBOA).

In the lead-up to the summit, the ACTU and COSBOA agreed to work together on creating a simpler labour system for small businesses. Part of their joint agreement was that this system would include new options around collective bargaining, including multi-employer agreements.

However, COSBOA CEO Alexi Boyd stressed that this would be “opt-in” for employers, would not be sector-wide and that her organisation would not agree to any mandates restricting businesses’ autonomy to make decisions.

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