Unions have welcomed a pledge from the government it will aim to end the practice of employers axing enterprise agreements in order to cut the pay of workers.
In a major speech to the Australian Industry Group on Monday, Workplace Relations Minister Tony Burke said such moves by employers could not be justified.
The issue will be discussed at next month's jobs and skills summit in Canberra.
Australian Council of Trade Unions secretary Sally McManus said the threat of termination as a bargaining tactic by employers was unacceptable.
"The law was never intended to operate this way and this loophole is being used and abused by bad employers," she said.
"Allowing employers to threaten massive cuts to pay and conditions unless workers sign on to a new EBA is not a fair process."
The union head has called for the bargaining system to be fixed.
"After a decade of inaction and neglect under the previous government, it's encouraging to see a government standing up for working people and doing what is needed to get wage growth moving again," Ms McManus said.
The minister says he has no issue with the Fair Work Commission, rather he wants to see the wages umpire become more fit for purpose.
"I see this as a way to get out of freely bargained obligations - something we would never accept in the world of commercial or consumer contracts," he said.
"This appears to be more than a loophole, it's a rort, and I'm disgusted that it's even being tried."
However, the minister says there may be some exceptions to the rule where there was exceptional business distress, if it means affected workers would continue to be employed.
The comments come as tugboat operator Svitzer has aimed to axe its enterprise agreement with maritime unions.
"These are the same workers who, just weeks ago, were applauded for putting their lives on the line to save a bulk carrier and its crew stranded off the coast of Sydney after a cable snapped," Mr Burke said.
"The NSW Premier, Dominic Perrottet, described the work of these crews as 'heroic' and 'incredibly impressive', and rightly so."
Mr Burke says he will look to discuss ways to solve industrial issues at the jobs and skills summit, gauging a consensus between businesses and unions.
The summit, held over two days in September, will bring together representatives from businesses, unions, politics and civil society.
Recommendations from the summit are expected to be included in the October federal budget.
Nationals leader David Littleproud said it was critical the Fair Work Commission remained independent.
"(The minister) just needs to be careful about making sure that he's not forcing the commission, and, in fact, putting pressure on the commission to bend to his thinking," Mr Littleproud told Sky News on Monday.
"If Tony Burke after the job summit wants to bring forward legislation, you'll have to get both houses of parliament to agree to that, but the letter of the law is important."
