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It comes as the Treasurer expects an increase in wage growth as part of his upcoming budget forecast.
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Productivity Commission warns against multi-employer bargaining
17 October 2022
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10 minute read
The Productivity Commission has warned against expanding the multi-employer bargaining regime in an interim report of its five-year productivity inquiry.
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“The Productivity Commission’s latest interim report from its five-year productivity inquiry fires a very clear warning shot that an expansion of multi-party bargaining risks damaging our economy and workplaces,” said Innes Willox, chief executive of the national employer association Ai Group.
“The report reinforces the alarm that recent union calls for multi-employer bargaining to be extended to sectors such as road transport will translate to increased industrial action and costs being heaped on already stressed supply chains.”
“The Commission’s plea that changes need to be undertaken with caution and be subject to detailed, rigorous and transparent analysis mustn’t be ignored.”
Australian Chamber of Commerce and Industry chief executive Andrew McKellar agreed and said pushing forward with the multi-employer agreements would only cause further problems for businesses already under pressure.
“The commission’s report confirms what we knew all along: any significant move away from enterprise negotiations by rapidly expanding multi-employer agreements would pose a significant risk to jobs, to productivity, and to business,” said Mr McKellar.
“Recentralising terms and conditions, that take decision making away from employees and employers, would be particularly damaging given already serious global risks and uncertainty.”
“Instead, bargaining at an enterprise level should remain the cornerstone of our workplace relations system, to grow pay packets, improve job security, and boost international competitiveness.”
Australian Council of Trade Unions secretary Sally McManus strongly disagreed with the Productivity Commission’s interim report and said it was just attacking workers.
“The Productivity Commission are another politicised relic of the previous Govt. One last acts (sic) of Josh Frydenberg was to charge then with attacking workers rights. They have no idea how wages bargaining works, do not consult & ignore international research. No credibility” - @Sallymcmanus on Twitter.
Despite the debate surrounding employees’ bargaining agreement, Treasurer Jim Chalmers said he expected to see wage growth but not at the expense of increased inflation, which would be reflected in his upcoming budget forecasts.
“Wage growth needs to be strong and sustainable as well, the primary focus of Australians is what’s happening to their own pay packet,” said Dr Chalmers from Washington, D.C.
“We expect wages growth to pick up, you will see that in my forecasts that I release in my budget.”
“We don’t expect it will have a big inflationary impact on the economy. The inflationary challenge comes from other sources.”
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