Australia’s peak body for food manufacturers claims its members will have “no choice” but to increase prices for consumers if Labor’s new laws “force” them to pay higher wages.
The Albanese government’s Secure Jobs, Better Pay legislation has been met with fierce resistance from employer groups, the opposition and some independent MPs.
Independent Food Distributors Australia chief executive officer Richard Forbes said many businesses simply couldn’t afford to pay higher wages than they already were.
Mr Forbes said Labor’s industrial relations reforms could “inadvertently” lead to higher prices for consumers and that wage rises were already “happening organically”.
He said many IFDA members had already had to negotiate wage increases above award rates with some staff in order to keep them in a very tight labour market.
“I’m sure it’s the same across many areas of the supply chain,” he said.
Mr Forbes’ argument isn’t unexpected, given employer groups represent the interests of businesses who generally want to keep their labour costs down.
The Secure Jobs, Better Pay Bill contains the first of several expected tranches of industrial relations reforms including abolishing the Australian Building and Construction Commission and mandating more flexible work arrangements.
Anthony Albanese says the laws will improve workplace negotiations between bosses and employees, give more bargaining power to the lowest-paid workers, and “get wages moving again” after a long period of stagnation.
The most contentious element of the wide-ranging Bill is the expansion of single-interest multi-employer bargaining, which allows enterprise agreements to apply to more than one business and their relevant employees.
The multi-employer bargaining stream could potentially cover many workers across an industry and give them the power to stage collective industrial action.
The legislation passed the House of Representatives on Thursday by 80 to 56 votes after Workplace Relations Minister Tony Burke made several concessions including paring back the multi-employer bargaining expansion.
After a backlash from employer groups, Mr Burke had changed the Bill to require a majority vote in each workplace before multi-employer industrial action or bargaining agreements could proceed.
The government has signalled it is willing to make further amendments to what will be the biggest changes to workplace laws in two decades.
The Bill will now head to the upper house, where ACT independent Senator David Pocock is expected to cast the deciding vote.
Senator Pocock reportedly met with the Prime Minister earlier on Thursday to discuss the laws.
Independent MPs Zoe Daniel, Monique Ryan, Bob Katter and Andrew Wilkie voted with Labor and the Greens in favour of the Bill.
Independent MPs Allegra Spender, Kate Chaney, Sophie Scamps, Helen Haines, Rebekha Sharkie and Dai Le voted with the Coalition against it.
Deputy Liberal leader Sussan Ley said the legislation was “extreme” and that business groups had warned against passing it in its current form.
“We have seen lining up, the Australian Chamber of Commerce and Industry, the Council of Small Businesses, the Minerals Council, the National Farmers Federation, and the (Business Council of Australia) all saying this Bill is not in a fit state to pass,” Ms Ley said.
