Small business hits out at ACTU push to restrict use of contractors and outsourced labour

The Australian Council of Trade Unions has passed new resolutions it intends to take to the ALP conference next week in a push to increase workers’ access to arbitration and fight the use of contractors and casuals by employers.

But small business has warned against the push, suggesting the ACTU should stay out of telling SMEs how to run a workplace that already operates effectively and in everyone’s interests.

“One of the issues we see here is that unions are dictating to business how they are going to run,” warns Council of Small Business of Australia chief executive Peter Strong.

“Big business and unions can fight all they want, but when you’re talking about casual workers in a shop, or working by yourself as a contractor, then it becomes a whole different ball game.”

The ACTU passed resolutions yesterday that Fair Work should have more power to settle arguments when employers have no intention to settle, and in light of the recent Qantas grounding, wants to stop companies from disrupting work in order to spark arbitration.

The changes, it says, are a result of “employment militancy”. President Ged Kearney said in a statement the Executive of the ACTU had resolved to seek improvements that would give workers better access to arbitration to negotiate disputes, along with more power to negotiate over aspects of secure employment.

The latter is part of the ACTU’s push to enable workers to move fluidly from casual to part-time or full-time employment – a move employment groups vehemently oppose.

“Secure jobs matter to all workers. With 40% of the workforce in casual, contract or labour hire employment, unions are determined to campaign in workplaces and communities for a better future for these workers,” Kearney said.

“We will take this campaign to next week’s ALP Conference and beyond.”

The appeal to easier access to arbitration comes in light of the recent Qantas dispute.

“A new pattern of industrial militancy by employers has emerged following the reckless and disproportionate action of Qantas management to ground its entire fleet and threaten to lock out its workforce last month,” Kearney said.

Strong says the issue of flexible employment has been debated in small business before, and points out many employees don’t want or need the ability to move to full-time employment.

“Many workers want to be casual. It gives them flexibility and a higher rate of pay. The ACTU really needs to be careful that it doesn’t make decisions on behalf of workers, when they may not even want those changes.”

With regard to arbitration, Strong says the changes may affect larger businesses more. But he warns any changes need to be simple for small business and in balance.

“All we want at our level is a system that’s easy to understand, so employees and employers can understand it. Unions just need to be careful to ensure it’s all in balance.”