CHRONICLE COLUMN – 5 DECEMBER 2022 – NEW IR LAWS
Last week, the Toowoomba Chamber invited the Member for Groom and all candidates in the recent Federal election to a roundtable discussion to unite around the small and medium businesses who are increasingly anxious about the impact of the proposed new IR laws on their business.
Speaking with local businesses who specialise in this area, Classic Recruitment and Human Resources and Focus HR, the new IR laws, some taking effect immediately and others being rolled out over the next six to 12 months, will amongst other things:
- address gender equity issues, bringing the matter front and centre, by including it in the objects of the legislation;
- place new restrictions on fixed term contracts;
- bring in new enterprise bargaining provisions, with employers potentially being forced to participate in multi-employer bargaining; and
- make some changes to anti-discrimination arrangements.
The list of changes is of, course much longer. And in my view, complex for small business.
We know this is anxiety-provoking for small to medium businesses who have reached out to the Toowoomba Chamber and local elected members of parliament for support and guidance.
Some relief may have come thanks to the negotiated changes by independent Senator Pocock, relating to businesses with 50 employees or less. But time will tell.
Complex IR laws for small business
The devil, of course, will be in the detail, and I concur the with Business Council of Australia that risks remain in the creation of a new untested, untried and unproven multi-employer bargaining model.
And such change, amidst the broader inflationary pressures, cost of living crisis, and worker shortfalls, is likely to place increased stress on our business community, the backbone of our economy.
Our roundtable discussions also highlighted:
- the government modelling shows that this could cost small and medium businesses between $14,000 and $80,000 in bargaining costs, which is an unacceptable hit to aspirational business owners in our region.
- these changes may have unintended consequences on small business and ultimately, workers, particularly in our struggling hospitality and manufacturing businesses, as well as our agricultural sector who remain under enormous stress from natural disasters and global disruptions.
- concerns that the new IR laws will decrease small business owners’ confidence in managing employees and their businesses.
With the new laws having secured their way through parliament, there remain many uncertainties and potential threats to small business growth because of the new legislation.
We remain highly concerned, as we continue to get our head around and better understand the impact on the daily operations of small business.
With this major shift in industrial relation law and its impact on our local business community, the Toowoomba Chamber will hold a business breakfast in February, to unpack, what appears to be a looming critical challenge heading into 2023.
Are you concerned about the new IR laws? What are your concerns?
Let us know by emailing admi@toowoombachamber.com.au
Remember, it is never too late to advocate for change.
But, right now, we urge all employers to actively seek advice about their policies and procedures, as the Federal government reform will require you to assess your current agreements, employment contracts, and general people practices at a minimum.
