Further industrial relations changes, as suggested by the ACTU, will take a sledgehammer to the economy by adding cost and complexity for businesses at the worst possible time, while not improving productivity, according to the Business Council.
Business Council Chief Executive Bran Black said the Federal Government should rule out the ACTU's industrial relations agenda, that would risk significant economic damage and further dampen labour productivity, which has not grown in eight years.
"Businesses are still coming to terms with the significant IR policies already passed through the Parliament - the latest of which only came into effect at the end of August - and any further changes, without linking them to productivity, will cause economic damage and lift inflation," Mr Black said
"The Government should rule out these changes and focus on generating economic growth and addressing our historically low productivity, because without that all Australians will pay more through higher and longer inflation."
Mr Black said the ACTU demands to abolish junior pay rates could have the counterproductive impact of locking out young people from getting into the workforce.
"This approach could have the consequence of stopping many young people getting a start in life with their first job.
"Businesses are facing serious economic challenges, and record insolvencies rates, and I hear constantly from businesses that the burden of increased workplace red tape is harder and harder to bear, so these types of changes would come at precisely the wrong time.
"The private sector, not unions, employs six in every seven jobs in Australia and the Government should remember without a strong and successful business sector there will be fewer jobs and fewer economic opportunities."
Mr Black said the Government review of Secure Jobs, Better Pay, announced today, needed to examine how these changes would improve our historically low productivity.
"These laws never had the benefit of rigorous economic impact assessment before being introduced, despite business warning that changes like multi-employer bargaining would take our workplace laws back to the 1970s.
"I'm very concerned about multi-employer bargaining, and it's clear, despite what the Government promised, nearly every sector and every industry could be targeted by this economically destructive policy.
"The Government review needs to look at how these changes have made Australia a harder place to do business, hire people and improve real wage growth through productivity improvements," Mr Black said.
