The Albanese government’s latest plans to tweak industrial relations laws in favour of unions has drawn alarm from business leaders and the mining sector.
Included in a bill to be debated in parliament this week is a new provision which would allow the government to discriminate against organisations which do not strike enterprise bargaining agreements with unions.
The provision, which takes the form of an exception to discrimination laws governing billions worth of contracts, shocked business and industry leaders when it was embedded in a package primarily aimed at allowing the Fair Work Commission to cope with increased applications driven by artificial intelligence.
Ahead of its debate in the Senate, Minerals Council of Australia chief executive Tania Constable has reportedly written to every single Senator urging them to vote against the bill or risk corrupt conduct seen on infrastructure projects in Victoria and Queensland being replicated on a national scale.
Her letter, excerpts of which were published by The Australian, warned the legislation would “lead to corrupt conduct and vast wastage of taxpayers’ money”.
“The risks of such an approach are evident in the numerous examples of waste and corrupt conduct that have resulted where such policies were applied to government-funded construction projects by state governments in Queensland and Victoria,” Ms Constable wrote.
“In Victoria, similar policies continue to apply state government-funded infrastructure projects. The Watson Report into corruption in the Victorian building industry estimated (conservatively) that the cost of inefficiency and corruption had added $15 billion to the cost of public infrastructure in the state.”
The MCA boss added the provision could set a precedent, allowing unions to push for all forms of government support to become conditional on collective agreements with workers groups.
According to the peak mining body, the legislation would pose a significant risk to some $50 billion of commonwealth contracts available for the sector.
It could also see companies potentially lose access to loans from the National Reconstruction Fund Export Finance Australia and production tax credits under the Future Made in Australia program.
Australian Chamber of Commerce and Industry chief executive Andrew McKellar echoed the concerns of the MCA, arguing the bill would effectively force businesses to go “cap in hand” to unions in order to retain access to government contracts and support.
“Whether it’s in defence, energy, national infrastructure – or any other sector – allowing unions to run rampant in taxpayer-funded projects is a recipe for disaster,” he told The Australian.
Workplace Relations Minister Amanda Rishworth, though, dismissed the concerns, insisting “value for money and quality, timely delivery” would remain the key factors in determining government contracts.
“The bill does not impose any obligations on the commonwealth to do anything,” she said.
“Value for money and quality, timely delivery will remain front and centre of all government spending decisions.”