by Craig Sullivan | Aug 26, 2024 | Media Release
The Australian Chamber of Commerce and Industry is calling on the government to use the opportunity of the expired tabling deadline, to take the time to further consult with industry and address the significant concerns around the proposed changes before they become law.
“While the government’s self-imposed deadline has not been met, it enables the Department to continue engagement to ensure the changes are appropriately balanced,” Andrew McKellar, ACCI chief executive officer said.
“We know that an alarmingly high number of small businesses are unaware of upcoming privacy law changes, regardless of the absence of any real detail from this Government.
In response to the Australian Chamber of Commerce and Industry’s (ACCI) 2024 Small Business Conditions survey, two thirds of small businesses said they are not aware of the forthcoming changes, with just 8 per cent considering themselves ready to comply with speculated changes.
Even today, the small proportion of small businesses that are aware of any upcoming changes remain in the dark as to the detail.
“What we do know is that the government’s changes could have significant implications for small businesses in particular,” said Mr McKellar.
“Our small business survey shows that policy makers and regulators need to do better to help small businesses and not tie them up in regulations and red tape.
“With so little awareness of the Privacy Act changes and little to no existing business systems in place, a large-scale awareness campaign and targeted supports will be critical to ensure small businesses are not overwhelmed with these new obligations.” Mr McKellar said.
He said ACCI welcomed the discussions it’s had to date with the Department on this issue but says more consultation is needed.
“Our primary concern now is that we are yet to see the final package of changes to truly be in a position to understand the cost and compliance burden on businesses, particularly small businesses which are already grappling with financial pressures and regulatory demands.”
“In this environment of labour shortages and inflated energy costs already putting pressure on small businesses, the government’s privacy law changes will be a further burden to bear.”
by Craig Sullivan | Aug 25, 2024 | Media Release
Event: Andrew McKellar doorstop at Parliament House Canberra
Date: Sunday 25 August 2024
Topics: Changes to the workplace coming into effect on Monday August 26, collective bargaining and CFMEU
E&OE
Andrew McKellar:
Okay, thanks very much. Good morning
From tomorrow we will see around half a dozen measures being implemented from the Closing the Loopholes Bill, or as we call it the strangling small business bill. Those measures will include a new right to disconnect. They will include changes in the definition and the operation of casual employment arrangements.
They will include a new definition of employment impacting in some cases independent contractors, and it will also involve changes through employment arrangements in the gig economy and also for the road transport sector. All in all, these are significant increases in the level of complexity for business, the level of red tape that many businesses will have to grapple with. I think there’s also a significant risk that this could mean increases in input costs for some businesses, and of course in some cases that’s going to mean that those costs will be passed on to consumers. So I think it’s a concerning day. Business is alarmed about the impact this will have in the future for the level of red tape and compliance. It will make it harder for many businesses to make the decision to create jobs and employ more people. So happy to take some questions
Journalist:
In terms of what you’re hearing from your members in implementing the right to disconnect aspect. Has there been consultation and are people clear exactly what they need to do and the rules around it?
Andrew McKellar:
Well, no, they’re not. I mean, obviously we are out there talking to business, so we’re informing them about these new obligations. We’re only just seeing now a new provision that will go into awards, so from tomorrow all awards will be changed so that they have that provision included in them. The legislation will come into effect, but I think there’s a real level of uncertainty about what it means for employers and what it means for employees. So it doesn’t mean that they have the right not to respond. No, it’s not a blanket right of course, it has to be reasonable. It has to be on reasonable grounds, and I think at the moment there’s a real lack of certainty about what determines whether that action is reasonable or unreasonable, and I think that’s something that we really won’t know how that is going to be interpreted until we start to see some test cases coming forward in the commission in the courts, and really I think that’s not an ideal environment. The other thing is, of course for small business, this will not apply to small business from tomorrow or those businesses with 15 employees or less. There’s a further 12 months, but the clock is ticking. And I think if you look in other jurisdictions around the world, in France, for example, where a right to disconnect was applied that had a threshold of 50 employees. So here in Australia it’s much more sweeping. It’s going to impact businesses right across the board, and we’re most worried about the impact that will have for small business.
Journalist:
When you say impact, and even when it comes to doubt, what is the impact? What will the practical effect of these rules be for businesses and for employees?
Andrew McKellar:
Well, I think it will mean that there’s obviously less flexibility. I think what we’re going to see is that this will become an issue. It’s another ground that can be used when you get into a situation where there’s a breakdown in the employment relationship, and that’s where we expect that we will see the main impact is that this becomes another basis for litigation. So the lawyers will be the winners, small business will be the losers. The concern is it makes it much harder for businesses right across the board to make that decision to commit to take on more employees, and it cuts against the grain. When coming out of the pandemic we’ve seen many people saying they want more flexible work arrangements. They want to be able to work from home some of the time or have the choice to work remotely. That cuts against the grain of those sorts of arrangements where the boundaries become less clear and we’re going to have that uncertainty.
Journalist:
Do you think it’ll make the productivity problem even worse if people can’t get people working when they need to be?
Andrew McKellar:
The net effect of these changes is to crush productivity. It’s going to make it much harder for businesses who want to get that flexibility, and we’re already seeing other claims coming forward from the union movement about what’s the impact of things like artificial intelligence, how’s that going to impact workplaces? That should make it easier for people to do their jobs. It should make their productivity more possible. So I think if you put that together with these changes, then I think the risk is that we are seeing more and more challenges to getting the productivity that we need in the Australian economy, and that’s a bad thing because that’s going to hold back on wages growth in the future.
Journalist:
Just separate issue on IR on Friday the Fair Work Commission handed down a ruling to compel three New South Wales based mining companies to enter into collective bargaining. It obviously relates to the first tranche of IR laws that were passed under this government. So I guess we’re now seeing the effect of these laws starting to flow through. Do you think there’s a possibility that as that happens, the government will perhaps realise or belatedly that they’ve perhaps stepped too far, that there has been overreach, and what are the consequences as we start seeing these laws flow through?
Andrew McKellar:
Well, that’s something we are very concerned about. So this idea of multi-employer bargaining potentially where you have work sites where there may not be a majority of union employees or there may not be a wish to enter into some of those multi-employer agreements. I think that’s also going to be a risk. And again, it moves away from what drives productivity. You get that productivity when you are able to set conditions and arrangements at the workplace level, at the enterprise level rather than trying to fit a one size fits all solution. I mean, the other thing to say here, and I come back to the point on the compliance burden, red tape, what we’ve seen, we’ve been out talking to small business in recent months and we have seen that about 82 per cent of all small businesses are concerned about the impact of regulation, red tape on compliance on their businesses. 61 per cent of them have seen that burden go up in the past 12 months, and nearly half, 45 per cent, of all small businesses have said that in the past 12 months they were considering closing their doors. That’s not a situation that we want to see. Red tape regulation compliance is the biggest issue that small businesses grappling with at the moment along with rising costs. If you are going to add to that burden, then it just gets so much harder for small business.
Journalist:
Have you been able to sit down with Murray Watt since he’s taken over the portfolio and that’s your relationship with him like?
Andrew McKellar:
We have. We’ve had a couple of opportunities to engage with Murray Watt as the new minister. I have to say, those have been very constructive engagements. Obviously, one of the key topics that we’ve been talking about is the issue of the CFMEU and how the government is responding to that. We support the legislation that the government has passed to put in place an administrator, and I think it’s good that they’ve acted swiftly to implement those arrangements from Friday. That’s a good first step. It’s a necessary step, but it’s not a sufficient step. The other area where we have a big concern now is the resources and the powers that the existing regulators have. So whether that’s the Fair Work Commission or the Fair Work Ombudsman, and we’ve been talking to them as well. Our concern is they don’t have the resources. They don’t the powers that give many businesses the confidence to come forward and provide evidence about the wrongdoing, including criminal conduct that’s been occurring in that sector. So they need to have those strengthened powers if they’re going to be fully effective. It’s one thing to have an administrator going in, but we have to take many other steps and to shed light on the sorts of conduct that’s been going on to bring forward the evidence to be able to launch the prosecutions and to be able to ensure that people pay a real penalty for criminal conduct, let alone the other things that have been happening in that sector.
Journalist:
What do you make of some of the calls from the CFMEU members ship to strike and the threat that they’re putting out there?
Andrew McKellar:
Oh, look, we know they’re not going to be happy. We know that they’re not going to lie down and go away. There’s an ingrained culture. That culture has to be broken. It has to be turned around, and it can only happen if there’s a number of different measures, approaches being put in place. Administration is one of those. I think obviously ensuring that you have a strong, well-resourced, regulated with all the powers that it needs to really clamp down on activities of coercion, the standover tactics, the closed shop arrangements, as well as obviously the criminal conduct that’s been going on. If you don’t have those things, then you won’t be able to get results. Clearly, there will be an ongoing battle in this space, but this is the best opportunity in decades to put an end to the corrupt culture that has been rampant across the construction industry in Australia.
Journalist:
Just finally on the changes with the IR laws for rideshare workers, could we see our Uber Eats costs going up?
Andrew McKellar:
They’ve signaled that that’s a real possibility. I think the other thing here that we are concerned about is it’s one thing with the federal standards that have been brought in, but we’re also seeing the New South Wales government seeking to come around the side introducing its own standards and arrangements, and I think there’s a real risk that that’s going to involve extra layers of duplication to jurisdictions tripping over each other. So if we start seeing the states trying to also move into that space, then really, I think that’s going to be incredibly inefficient and something that should be absolutely avoided. Thank you. Thank you very much.
by Craig Sullivan | Aug 25, 2024 | Media Release
Australia’s largest and most representative business network says new workplace rules which come into effect tomorrow are complex and will impose another layer of regulation on businesses, especially small businesses.
The Australian Chamber of Commerce and Industry (ACCI) says the new rules represent the biggest change to workplace laws in decades.
The changes include the right for employees to disconnect, a new definition of casual employees, a new definition of an employee versus an independent contractor, and new standards for the gig economy and the road transport industry.
ACCI chief executive officer Andrew McKellar said businesses are already doing it tough and these changes create more uncertainty and confusion.
“Our recent poll found almost half of small business owners considered closing in the past 12 months, these changes could be enough to send them to the wall,” Mr McKellar said.
The most controversial of these changes is the ‘right to disconnect’ law.
The ‘right to disconnect’ will give employees the right to refuse to monitor, read or respond to contact or attempted contact from an employer or a third party outside work hours, unless that refusal is unreasonable.
Mr McKellar described the new ‘right to disconnect’ laws as a thought bubble by the Greens.
“The ‘right to disconnect’ was a last-minute amendment by the Greens which the Government hurriedly accepted to get the broader workplace changes through Parliament.
“Businesses were not consulted on this major change to the workplace,” said Mr McKellar.
He also said changing the definition on casual employment is not straightforward and could disrupt the flexibility both employers and employees benefit from in the workplace.
“The definition of a ‘casual employee’ now requires case-by-case interpretation and is confusing for both employers and employees.
“The unintended consequences of this change may result in businesses steering away from employing casuals due to the complexity of the definition and to avoid being caught on the wrong end of an interpretation.
“This is bad for business and bad for those workers who are looking for flexibility.”
Mr McKellar described the changes to the definition of an employee as unnecessary and will create uncertainty.
“This change will impact businesses that rely on independent contractors, who in time may be converted to employees under these changes.
“That will cost businesses more by having to pay employees who were former contractors additional entitlements and create more regulation.”
There will also be changes for workers in the gig economy and the road transport industry with the Fair Work Commission able to consider applications for minimum standards for workers commencing tomorrow.
The government has already said that these changes will see an increase in the price of a pizza for example.
Mr McKellar said confusion will be compounded if the New South Wales government follows through on its own changes to introduce minimum standards for gig workers.
“What they propose is entirely duplicative and likely to be struck down by federal laws.
“Further consideration of this vanity project by the New South Wales government is a waste of time and resources, not least for New South Wales taxpayers,” Mr McKellar said.
Mr McKellar said ACCI will be monitoring all the changes once they take effect tomorrow and seeking feedback from businesses through ACCI’s business chamber network.
by Craig Sullivan | Aug 20, 2024 | Media Release
Australia’s largest and most representative business network has welcomed the federal government’s announcement of a $12 million investment to strengthen Australia’s Vocational Education and Training (VET) workforce.
The Australian Chamber of Commerce and Industry (ACCI) says the announcement, which coincides with National Skills Week 2024, will help address the critical workforce challenges across various key industries.
This includes aged and disability care, energy and renewables, construction, and manufacturing.
The VET sector plays a vital role in equipping Australians with the skills required to meet the demands of our evolving economy.
The $12 million boost aims to empower Jobs and Skills Councils (JSCs) to better respond to industry needs, in collaboration with Jobs and Skills Australia and other key stakeholders.
ACCI chief executive officer Andrew McKellar said, “This investment is a positive step towards ensuring the VET sector can better meet the evolving needs of Australian industries.
“The role of the JSCs is particularly important in this context, as it helps to ensure that industry voices are central in identifying and addressing workforce challenges,” Mr McKellar said.
“With nine out of ten new jobs requiring post-compulsory qualifications, and almost half of these being VET-based, all new funding is welcomed to ensure that our workforce is well-prepared for the future.”
ACCI says it’s committed to working alongside the government, industry partners, and educational institutions to continue advocating for a VET system that supports both students and businesses and ensures Australia remains competitive in the global market.
by Craig Sullivan | Aug 19, 2024 | Media Release
Australia’s largest and most representative business network has this afternoon welcomed news of a deal between the government and the opposition to pass the bill to place the CFMEU under administration.
The Australian Chamber of Commerce and Industry’s (ACCI) chief executive officer Andrew McKellar says strong and definitive action needs to be taken against the CFMEU in light of the serious concerns that have been raised.
“We recognise that bi-partisan support for the bill has been achieved by the government and opposition and that is constructive,” said Mr McKellar.
He said he was pleased to see the following amendments being agreed to including:
- That the scheme will apply to all CFMEU branches
- The administrator reporting to the minister every six months, with reports tabled in the Parliament
- Extending the duration of the administration from three to five years, with a minimum three-year period.
- Confirming the administrator can conduct investigations into past conduct of the Construction and General Division of the CFMEU and its branches
“This is undoubtedly a stronger bill now,” said Mr McKellar.
However, he also said that this legislation should be just the first step in cleaning up the building and construction industry.
“We strongly maintain the view that the reinstatement of the building and construction industry watchdog with the powers and resources to take effective action is also essential.
“Public confidence can only be restored when there has been a clear, effective and transparent inquiry into all of the conduct that the union has been engaged in.”
by Craig Sullivan | Aug 16, 2024 | Media Release
Australian Chamber – Tourism welcomes today’s announcement of an Australia Travel Declaration pilot program, a digital version of the superfluous Incoming Passenger Card (IPC).
The Australia Travel Declaration will be available for eligible Qantas passengers travelling from New Zealand to Australia, with a view to broadening this to other airlines as the pilot progresses.
John Hart, Executive Chair of Australian Chamber – Tourism, says this is a welcome and long-overdue step to improved passenger facilitation for travellers to and from Australia.
“Australian Chamber – Tourism has been saying for some time now that the outdated Incoming Passenger Card needs to be removed and replaced with something more user friendly, so today’s announcement is tremendous,” Mr Hart said.
“As Australia looks to open another international airport in 2026 and host the Olympics in 2032, it is absolutely critical that we make the necessary investments in improving the traveller journey now.
“Today’s pilot announcement marks an important step in this process and we are committed to working with industry and Government on its success and further implementation for additional countries.”
Abolishing the physical IPC was a key recommendation made by Australian Chamber – Tourism in its recent Future Traveller Strategy, released last month.
The Future Traveller Strategy provides a comprehensive overview of the passenger journey for inbound and outbound travellers, making sensible recommendations on where improvements must be made to ensure Australia remains a desirable destination.
