‘Employee-like’ IR reforms threaten subbies’ “hard-earned independence”: Master Builders Australia

Master Builders Australia has doubled down on its claim that new “employee-like” work standards will boost costs and reduce independence for subcontractors, defying Minister for Employment and Workplace Relations Tony Burke’s assertion that any new rules will focus on the gig economy.

The peak construction industry association has launched a new public offensive against the Albanese Government’s plan to provide new baseline standards for workers straddling the line between employees and contractors.

Many workers are “falling off a cliff” when transferring from full-time employment to work in the gig economy, Burke says, as independent contractors are not covered by the minimum standards offered to employees.

The federal government’s plan involves granting the Fair Work Commission new powers to set those baseline standards for ’employee-like’ workers, recognising how modern-day gig workers differ from both standard employees and traditional independent contractors.

A government consultation paper, released in April, focuses on gig economy workers and asks respondents exactly what type of workers should be covered by the proposed changes.

However, Master Builders Australia fears the impending rules will be ill-defined, and could have adverse consequences for construction industry professionals happy to rely on contract work.

“Independent contractors and subbies have worked hard to establish their businesses, build strong relationships, and enjoy the freedom to choose how they operate,” said Denita Wawn, Master Builders Australia CEO.

“The government is threatening to strip contractors of their hard-earned independence, and they deserve better.”

In its pitch to the small business owners who oversee much of Australia’s construction industry, the organisation says entrepreneurs “could no longer be able to be their own boss by being forced to become an employee”.

The claims echo a statement Master Builders Association shared late last month, alleging the reforms could have consequences beyond the government’s stated scope.

Burke disputed those arguments at the time, telling Sky News the industry group was misinterpreting the government’s intent.

“It looks like what they’re doing is they’re taking the employee-like principle, which is our way of trying to make sure we get some minimum standards in the gig economy, and then they’re just applying it everywhere and saying, ‘Well, if you do all of this, that will be really bad’,” he said.

Legislation giving effect to those changes is expected to hit Parliament this year, and Burke said it will clarify which sectors are covered.

“The legislation will make clear that it’s about the gig economy,” he added.

“That’s what employee-like is about. And, you know, no one uses ‘Uber Electrician’.”

The latest push against ’employee-like’ reforms comes in the wake of collective industry opposition to the ‘same job, same pay’ regulation, which the government claims will close a loophole allowing businesses to continually outsource large portions of their workforce and pay them less than employees.