Fair Work review makes it worse for businesses

The Fair Work Act review misses the mark and fails to address major areas of concern for Victorian business, particularly small business.

The recommendations of the review panel do not go far enough and nor do they include changes which would make a real difference for Victorian businesses that are feeling the impact of the changes introduced by the Fair Work Act.

VECCI is disappointed that submissions it made to the review panel that would have made a difference to Victorian businesses have not been embraced.

In fact, some of the recommendations the panel has made will have the effect of introducing:

Further complexity;

More procedural requirements;

More red tape; and

More third-party interference into the employer-employee relationship by unions and the regulators.

Small business will still have to contend with the higher labour costs and the constraints on flexibility that the Fair Work Act has imposed upon them and remained shackled by unfair dismissal laws that force them to pay “go away” money to resolve unmeritorious claims.

With the rate of productivity growth under the Fair Work Act lower than the long-term average, it is time for the federal government to acknowledge that the laws that govern work affect productivity, and make the necessary changes.