by Craig Sullivan | Oct 17, 2024 | Media Release
The Australian Chamber of Commerce and Industry (ACCI) has expressed concern at reports of physical threats to industrial officials regarding the administration of the construction division of the CFMEU.
Australia’s largest and most representative business network is responding to reports that the administrator Mark Irving KC has been warned by police of “credible threats to undermine his efforts to clean up the union and industry.”
It follows the revelation by ACTU Secretary Sally McManus that she minimises going out and is living in several different locations out of concerns for her own safety.
ACCI chief executive officer Andrew McKellar says no-one in Australia should fear for their own safety in their workplace.
“People in positions of responsibility should be able to do their jobs and conduct their business without being subjected to threats and intimidation,” said Mr McKellar.
Mr McKellar also said the business community supports the appointment of the administrator and any further work that would clean up the building and construction industry.
by Craig Sullivan | Oct 2, 2024 | Media Release
The Australian Chamber of Commerce and Industry (ACCI) says the ACTU’s push to unleash a third wave of industrial relations changes would smash businesses already struggling under the weight of new workplace complexity and inflationary pressures.
ACCI chief executive officer Andrew McKellar said the ACTU has “let the cat out of the bag” about the unions’ plans to co-opt the federal government into introducing another round of radical industrial relations changes.
“They can’t keep quiet about the fact they want to unleash more upheaval against employers and their businesses.
“Disappointingly, there was not even an attempt to link the proposals to any productivity increase.”
Australia’s largest and most representative business network described the raft of policies as economically ignorant and is urging the federal government to resist the moves.
Mr McKellar said it has become clear that the ACTU is desperate to fundamentally reshape independent contracting in Australia.
“It is obvious that the recent employee-like changes were only a stalking horse for the imposition of minimum standards orders on all independent contractors.
“Make no mistake, where the ACTU references ‘freelancers’, in reality it is talking about all independent contractors.
“The ACTU is keen to steady the dramatic dwindling of union membership we have seen across the last two decades by unionising independent contractors.”
Mr McKellar has also taken issue with the rest of ACTU’s wish list on workplace relations including employers’ rights in industrial disputes, the abolition of non-compete clauses and a review into the casual loading.
“Watering down employers’ rights during industrial disputes will mean workplaces could be more vulnerable to sabotage,” Mr McKellar said.
“Under the ACTU’s model, employees would have the same rights to strike in protected industrial action but employers’ only ability to respond would be significantly curtailed.
“Clearly it is the aim of unions to undertake industrial action whenever and wherever without any fear of reply by limiting the only response action available to employers.
“This is another example of the ACTU trying to have it all one way.”
Mr McKellar says claims non-compete clauses constrain employees are overblown and ignores the facts.
“An ABS survey of business found that only one per cent of Australian businesses had a potential employee turn down a contract because of a non-compete clause,” said Mr McKellar
“Restraint clauses are rarely enforceable, there is already a legal presumption that they are invalid, and they can only be successfully used by employers when they are protecting legitimate business interests such as internal client lists that an employee could easily take to a competitor if not for such a clause.”
Mr McKellar highlighted that recent changes to the workplace relations system have already made employing casuals less attractive.
“The government’s changes to casual employment have introduced a legalistic test that poses new complexity for employers about who is a casual and who is not.
“Seeking to review the casual loading on top of that complexity will only make casual employment a less viable and more unattractive option for employers.
“The many employees that would prefer to be casual, who prefer the flexibility, will be the ones who lose out.”
Mr McKellar was concerned that the ACTU was trying to influence the independent employment tribunal on junior pay rates.
“It is concerning that the ACTU would seek to undermine the Fair Work Commission’s discretion in the current SDA junior rates application by threatening to go over their heads to the federal government if they do not get their way.
“Youth unemployment is already much higher than the general population at 9.8 per cent, the ACTU should not be seeking to circumvent the Commission – parties will be filing actual evidence about the proposals instead of talking points.”
by Craig Sullivan | Oct 1, 2024 | Media Release
Today, October 1, marks the start of National Safe Work Month, which is being promoted by the Australian Chamber of Commerce and Industry (ACCI).
This year’s theme is ‘Safety is everybody’s business’, and ACCI is calling on work health and safety (WHS) regulators to reflect how they can help improve WHS amongst businesses, particularly small businesses.
The 2024 Small Business Conditions Survey compiled by ACCI found that small business owners rated safe work agencies as requiring the second greatest degree of regulatory compliance only after the ATO.
ACCI chief executive officer Andrew McKellar says the ACCI survey results show the extreme challenges facing small business in dealing with red tape, which highlights the need for work health and safety regulators not to add to the complexity and compliance burden.
“Six years on from our Part and Parcel safety campaign which focused on improving the way SMEs identify and implement WHS regulation into their own business context, and things are getting worse, not better,” Mr McKellar said.
“Small businesses are the backbone of our economy; however, they are often a second thought when it comes to policy making, legislation and regulations,” Mr McKellar said.
“It is everybody’s business to ensure WHS practices are fit for purpose and will achieve the positive outcomes we all want to see.”
Later this month ACCI will release this year’s national WHS Business Survey Report.
by Craig Sullivan | Sep 30, 2024 | Media Release
The Australian Chamber of Commerce and Industry (ACCI) has congratulated the federal government for achieving back-to-back budget surpluses.
Australia’s largest and most representative business network said the result of two consecutive budget surpluses is a positive achievement.
In welcoming the result ACCI chief executive officer, Andrew McKellar expressed caution about the sustainability of the budget outcome.
“It is encouraging that the budget outcome has been underpinned by lower-than-expected government expenditures. That said, much of this seems to have been the result of delays and timing impacts,” Mr McKellar said.
“It may be that recent reforms to the NDIS and aged care, which were passed with bipartisan support, will help to further quell excessive growth in these areas of government expenditure, but the full impact of these changes remains to be seen.”
“Either way, business remains concerned that fiscal policy is now heading on an expansionary path and that the federal budget will fall back into significant structural deficit.”
Mr McKellar also expressed concern about the increased expenditure in off budget items which are concealing large amounts of government spending.
“The 2023-24 budget outcome shows spending lifting from 24.5 per cent of GDP the previous year to 25.2 per cent of GDP.
“Of greater concern is the 2024-25 budget forecast where spending is projected to increase to more than 26 per cent of GDP and remain above that level over the forward estimates.”
Mr McKellar is now calling on the government to show renewed fiscal restraint.
“It is vital the government maintains stronger discipline on spending and adopts a clear standard to ensure fiscal sustainability over the medium-term.”
by Craig Sullivan | Sep 27, 2024 | Media Release
Australian Chamber – Tourism is reminding Australians of the importance of travel and tourism to our economy today as we mark World Tourism Day.
John Hart, executive chair of the peak body representing Australian businesses engaged with the visitor economy, says in the past Australian tourism has contributed up to 16 per cent of exports.
“Domestic and international tourism in Australia is worth around $170 billion to Australia’s economy,” Mr Hart said.
“Of this, some $45 billion comes from offshore.
“Without this spend, so many restaurants, bars, cafes, hairdressers and shops, especially in the regions would need to close.”
Mr Hart said tourism not only contributes to our balance of trade it also benefits Australians by making many of our goods and services viable.
“Tourists coming to Australia are by design, high-value travellers,” said Mr Hart.
“They have similarly high expectations as Australians do for our goods and services.
“As such, they make it viable for retailers, manufacturers and producers to have products available on the shelves for consumption by all of us.”
Mr Hart also said that at a time when there is pressure on the federal government regarding migration, there should be the opposite with tourism numbers.
“Tourists should be encouraged, particularly the high-value travellers that spend with intensity in the right areas of our economy.
“We are a welcoming people, and I hope we continue to greet our visitors with open arms.
“We need their contribution so that we can continue to live our best lives.”
by Craig Sullivan | Sep 19, 2024 | Media Release
Westpac economist Ryan Wells said that manufacturers are finding some pockets of demand amid a tough backdrop for the broader economy and lingering supply-side challenges within the sector.
“The Westpac-ACCI Actual Composite gathered momentum moving into the second half of the year, lifting from 54.6 in June to 56.0 to September.
“Having moved above the breakeven threshold of 50, conditions are beginning to show signs of improving in the manufacturing sector. The September survey reported an ongoing recovery in new orders, a consolidation in output and a bounce in overtime, but a decline in employment.
“Growth in new orders was firmer than expected, with a net 20% of firms reporting a rise in September, following a net 21% in June.
“Output growth was little-changed over the same period however, with a net 14% of firms reporting an increase. Firms are drawing on inventory stocks to meet demand, but in a context where output is less responsive, order backlogs are growing.
“Firms responded to the resilience in new orders via an increase in overtime. The latest survey found a net 11% of firms increased overtime in September, and a net 12% of firms are also looking to increase the size of their workforce over the next three months.
“The Expected Composite was virtually unchanged however, ticking down slightly from 53.0 in June to 52.9 in September, indicating firms expect demand conditions to improve at a modest pace. Partially offsetting this, supply-side issues remain a key concern of manufacturers.
“The survey finds that cost pressures facing manufacturers remain acute and incredibly volatile. In September, a net 51% of firms reported a rise in average unit costs. That is well above the average net 19% that reported an increase over the ten years prior to the onset of the pandemic.
“Manufacturers have little scope to pass on rising costs to consumers. The net 26% of manufacturers reporting a rise in prices remains well below the net proportion of those reporting an increase in costs, implying some degree of ongoing margin squeeze in the sector.
“Additionally, a net 13.1% of respondents indicated that labour was more difficult to find in September. That is consistent with the evidence on the relative factor limitations to production, which find that both ‘labour’, and also ‘materials’, are still seen as a much larger constraint on output compared to pre-pandemic norms.
“The mood of manufacturers about the general business outlook for the next six months improved but remains deeply pessimistic. Those expecting a deterioration outnumber those expecting an improvement by a net 35% in September compared to a net 42% in June.
“Having faced persistent headwinds around labour availability and cost pressures, manufacturers are developing a clear appetite for capacity expansion.
“The latest survey found that investment intentions forged ahead to a historic high, dating back to 1966, with a net 36% and 22% of respondents intending to increase investment spending on equipment and buildings respectively, over the next twelve months.
ACCI chief executive officer Andrew McKellar said the survey highlights once again the challenges and costs of doing business.
“While manufacturers may be experiencing pockets of opportunity, the growth in new orders is modest,” Mr McKellar said.
“On just about every category which makes up the index, results are still well down on pre-pandemic levels.
Mr McKellar said the data also corresponds with recent results from the national accounts.
“Persistent and sticky inflation continues to elevate the cost of doing business.
“Manufactures are experiencing further increases in input and labour costs but have limited ability to pass on these costs through higher selling prices, so profit margins continue to be squeezed.”
Mr McKellar said more needs to be done to bring down inflation to reduce the pressure on business.
“Fiscal policy at both the state and federal level must work in tandem with monetary policy to ensure inflation is brought down in a reasonable timeframe.
Mr McKellar also said recent changes to workplace laws and the additional regulation those changes bring are impacting productivity.
“There needs to be a greater focus on lifting productivity.
“This should include re-examining the recent changes to industrial relations that have made workplaces less flexible and taken us back to the 1980s.
“There also needs to be a discussion around reforming the tax system to make it fitter for purpose and reducing red tape which is strangling business.”
Read the full report here
