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political reporter Henry Belot

Labor and Coalition turn federal election campaign focus to industrial relations

Attorney-General Michaelia Cash says the current fines for unions are not enough of a deterrent. (ABC News: Adam Kennedy)

Both parties have renewed a debate over industrial relations, with the Coalition vowing to double the fines imposed on unions that break the law and Labor arguing the Coalition's proposed changes will leave workers who rely on penalty rates and overtime worse off.

Attorney-General Michaelia Cash has announced that a re-elected Coalition government would increase fines for union officials who break the law. 

Last week, the High Court ruled in favour of maximum penalties being applied to less serious breaches of the Fair Work Act, in a case against the Construction, Forestry, Mining and Energy Union (CFMEU).

The case was originally brought against the CFMEU by the construction industry watchdog the Australian Building and Construction Commission (ABCC). 

Senator Cash, referencing the High Court judgement, told Channel Nine existing penalties were not damaging enough to change behaviour.

"It goes straight back to the economy. We need to ensure our construction industry in Australia is as productive as it can be. And should not be held hostage by the CFMEU.

"We are going to ensure that their behaviour, their unlawful behaviour on construction sites in Australia, they are held to account."

Opposition Leader Anthony Albanese said Labor did not support the government's policy.

"It's no surprise, first of all, what has been announced by the government today is not our policy. So just to give you that cleanly," he said.

"But, secondly, it is no surprise that the government has decided the biggest issue they want to deal with is to be able to have an attack on unions and still, to this day, they have not legislated to deal with wage theft."

Scott Morrison and Anthony Albanese were both quizzed about their stance on industrial relations. (ABC News: Andrew Kennedy/Adam Kennedy)

Lack of clarity around key Coalition changes

The Coalition abandoned the bulk of its controversial industrial relations package last year after opposition in the Senate, including some changes to how enterprise agreements are reached.

Prime Minister Scott Morrison and Senator Cash said the Coalition was still committed to the changes, but the reforms have not been prioritised in parliament or championed by ministers in recent months.

The changes could allow employers to cut overtime or penalty payments with agreement from workers, provided hourly pay rates are not reduced.

Mr Morrison was asked on Wednesday if he had backflipped on the policy, given Senator Cash said on Wednesday morning there would be no pause to the Better Off Overall Test, or BOOT.

The government's original plan included allowing employers to apply to offer their workers two-year pay deals that did not meet the BOOT.

"As I was asked about this on the weekend, there are no major changes to the BOOT at all," Mr Morrison said.

Mr Morrison was pushed on what changes would be put forward, but did not answer.

He was also asked if any future changes would be targeted at pandemic-affected businesses, to which he replied: "The pandemic is now passed. There are emergency [industrial relations] measures that obviously no longer have an application."

Labor vows to make IR key election issue

Shadow Industrial Relations Minister Tony Burke said the Coalition's changes would leave some workers worse off and punish those who relied on overtime or penalty rates.

"At a time when everything is going up except your wages, Mr Morrison has announced a green light for pay cuts. That legislation that he is saying he will introduce is 111 pages, and pay cuts are there in black and white," he said.

"If that is what they think is the answer to what is happening in the economy at the moment then they do not understand what is happening in people's households."

Mr Albanese echoed Mr Burke, saying people were already struggling with the rising cost of living.

"Workers rely on these additional payments to put food on the table," he said.

The latest data from the ABC'S Vote Compass reveals which issues are most important to voters.
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