Labor will legislate improved access to flexible work for parents, carers and older Australians in a move that will almost certainly concern businesses already lobbying against multi-employer bargaining changes.
The workplace relations minister, Tony Burke, has revealed that the government’s “secure jobs, better pay” bill, to be introduced on Thursday, would include a stronger right to request flexible work, backed by binding Fair Work Commission arbitration if an employer refuses.
The same bill implements Labor’s election commitments to improve gender pay equity and multi-employer bargaining, a union proposal the government signed up to at its September jobs and skills summit. That proposal has alarmed employers.
Under current laws, employees can request flexible work hours but employers have no obligation to agree.
The changes would legally require employers to try to reach agreement with eligible employees who request flexible work hours or arrangements, including proposing an alternative if the employee’s request cannot be accommodated on reasonable business grounds.
If the parties cannot agree, the employees would be able to take the refusal to the commission to reach agreement by conciliation and, where that fails, receive a binding decision.
The bill would tip the scales in favour of eligible employees including carers, parents with children of school age or younger, people with a disability, those aged 55 or older, and those experiencing or caring for someone experiencing domestic violence.
Burke said “too many Australians are struggling to manage their work and care responsibilities”, with those affected, mostly women, often forced “to drop out of the workforce, or to take lower-paid or less secure employment”.
“This plays a major role in widening the gender pay gap.
“This is damaging families, communities, and our national economy.”
Burke said although many employers did the right thing, some flexible work requests “are unreasonably refused, and under our current laws those workers have no right of review”.
“There is another category of workers – mainly men – who need flexible work but do not ever request it because they think they’ll be knocked back and there’s simply no point asking.”
“This is because our workplace laws are outdated and do not actively support a culture of flexible work.”
The Greens have previously proposed that all employees should gain an enforceable right to request flexible work.
The bill would allow employees with a “common interest” – such as working in the same industry or same supply chain – to bargain for one pay deal to cover multiple employers, backed by the right to strike.
Employers have warned that the reform, combined with a lower threshold for FWC arbitration of industrial disputes, will shift Australia back towards centralised wage-fixing, pushing labour costs up.
The bill will refine the “better off overall” test, clarifying that hypothetical roster patterns should not prevent registration of pay deals, but allowing workers to reopen a dispute during the life of the agreement if they are disadvantaged.
The bill also bans rolling fixed term contracts, with exceptions including for high income earners.
The bill abolishes the Australian Building and Construction Commission and Registered Organisations Commission.
The Coalition has said it will oppose the bill, which the Liberal leader, Peter Dutton, described as “ticking off on the shopping list for the union movement”.
“We can’t have economy-wide strikes,” Dutton told Sky News on Sunday. “It would be crippling for businesses, particularly when we’re going into an uncertain period.”
