The IR reforms passed by federal parliament give small business owners an opportunity overlooked in much of the commentary in the media. They impose requirements on big business that take away advantages they have leveraged for years. The reduce competitive advantages of big businesses in some areas.
While we in small business, especially in retail, have had the award as our guide, plenty of big business competitors have negotiated agreements that lower their labour operating costs.
The reforms passed, as I read them, reduce the opportunity for this. Click here to see the comprehensive explanatory memorandum.
Also, since many small business retailers have fewer than 15 employees, they are not obligated under some of the changes.
Too much of the media coverage has regurgitated talking points from lobby groups, like the Australian Industry Group, Australian Retailers Association, Australian Energy Producers, Master Builders Australia, Minerals Council and some others representing big business. I don’t feel any affinity with these organisations.
If you go to the source materials on the Parliament website you can read the specifics and form your own opinion.
While there will be concern around changes relating to casuals, I think the changes are ok, fair.
COSBOA, an organisation that claims to support small business, was party to a statement Friday that included:
In addition, the changes to labour hire, also rushed through, will increase costs and complexity for business.
This will hit many small businesses and drive up prices, risk jobs and comes at a time when there are already many pressures on the economy.
I am not aware of any small business retailers who use a labour hire firm.
I can’t see anything in the changes that will drive up prices in small business retail.
I can’t see anything in the reforms that will put jobs at risk.
The changes were not rushed through. They have been on the books for months.
I get that representative organisations need to reflect the wishes of their members and be seen to be doing something. The joint statement from COSBOA and others on Friday reads to me a shouty and lacking detail, being worried for the sake of being worried.
How big businesses have used labour hire arrangements to circumvent awards is problematic I think. It has provided labour at a lower cost, disadvantaging small business competitors who did not enter into such arrangements.
Some media reports and commentators and others have complained that there was no consultation. A quick search online shows that the changes were forecast months ago. Submissions were sought and consultation opportunities were available.
From a small business perspective, if you have less than 15 employees, you’re unlikely to be impacted. If you pay according to the award, you’re unlikely to be impacted. The most contentious issue will be if a casual wants to transition to a more permanent arrangement. It you appreciate them, it’s a good think I think.
But let’s go back to the topic of labour hire arrangements by big businesses. This is about containing the cost of labour to maximise business profit. I’d rather employees have more money in their pockets than the big businesses they work for as the employees are more likely to spend their money in ways that local small business retailers benefit.
My advice to anyone who may think they have an opinion about the IR reforms, read the source material and form your own views on that rather than taking what you read from a news outlet.