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A joint statement from business associations of all sizes claimed the policy would reduce productivity.
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Businesses oppose ‘same job, same pay’ IR changes
06 June 2023
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10 minute read
Business associations of all sizes have come out in opposition to the government’s ‘Same Job, Same Pay’ industrial relations changes, launching a national media campaign to raise public awareness.
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The group of associations that included the Australian Chamber of Commerce and Industry (ACCI), Council of Small Business Organisations Australia (COSBOA) and Business Council of Australia (BCA) and more said the policy would lead to lower wage growth and fewer jobs.
The amalgamation also said the name of the policy, ‘Same Job, Same Pay’ was misleading due to it not having anything to do with equal pay for men and women.
“It means by law, employers will have to pay workers with little knowledge or experience exactly the same as workers with decades of knowledge and experience,” said the statement.
“It means by law, you cannot earn better pay by working harder or longer, if your colleague does not share your ambition or work ethic.”
“Same job, same pay will take away worker incentive and reduce productivity. This is not fair for workers or their employers. There is a better way, for better pay.”
The associations said the policy would reduce the flexibility of businesses looking to expand and shrink as economic conditions require and opportunities presented.
“Workplace rigidity will ensure these opportunities for growth will either go begging, or companies will be forced to endure a never-ending rollercoaster of hiring and firing as project development, construction and commodity prices rise or fall,” the statement said.
Chair of COSBOA Matthew Addison said the proposed policy would hinder small businesses and the relationships they established with their employees.
“Small business seek to reward workers for effort, experience, loyalty and productivity,” said Mr Addison.
“We are very concerned that the ‘same job, same pay’ proposal will damage many employer-employee productive relationships.”
“We seek for ‘same job, same pay’ to address an identified problem and not have far reaching unintended negative consequences.”
Jennifer Westacott, CEO of the BCA, said the introduction of ‘Same Job, Same Pay’ laws would make it impossible for people to be rewarded for their experience and effort.
“This is going to really impact on workers who are struggling with cost-of-living pressures and will also make Australia an extremely unattractive destination for people to invest - that means less jobs,” said Ms Westacott.
“It will be an own goal for the country and then an own goal for workers because jobs will go somewhere else.”
CEO of the ACCI, Andrew McKellar, said the proposal would hinder the economy and businesses by removing flexibility that both employers and employees require.
“Same job, same pay is a misnomer. It’s the opposite of fair by restricting reward for effort and experience. It will take away the flexibility that workers want and businesses need,” said Mr McKellar.
“Eliminating flexibility will weaken the economy, punish workers and drive up costs for consumers.”
The backlash to the ‘Same Job, Same Pay’ proposal came after the Fair Work Commission announced the 5.75 per cent wage increase, which COSBOA said had come at a time when small firms could least afford it.
“Small businesses across Australia are experiencing a tough operating environment and were struggling to absorb costs,” said COSBOA CEO Luke Achterstraat.
“We are deeply concerned about the increasing cost of doing business and that small business owners, including individuals and family businesses are finding it increasingly tough to make ends meet.”
“Acute labour shortages have already driven up the cost of employing people, with market forces generating higher wage rates across the economy.”
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