AUSTRALIAN Resources and Energy Group AREEA has this week provided a detailed briefing to crossbench members of the Victorian Legislative Council on labour hire licensing, urging them to reject legislation before the parliament that seeks to implement a similar scheme to those in Queensland and South Australia.
With the Andrews Labor Government requiring the support of at least two of the five crossbenchers in Victoria’s Upper House to pass the Labour Hire Licensing Bill 2017 (Vic), AREEA comprehensively outlined the adverse impacts a labour hire licensing scheme would have on employment and economic growth in the state.
“AREEA, our members and other industry groups all maintain there is no justification for the imposition of compulsory licensing of labour hire,” Tara Diamond, Director Industry Services, said.
“The strong concern is that widespread mandatory licensing for businesses operating in Victoria is not likely to achieve the objective of preventing the behaviour of the unscrupulous few who do not comply with their legal obligations.
“The proposed additional regulation will only act as a regulatory over-burden for already-compliant businesses without actually of itself ensuring any worker protection.
“In AREEA’s view, attention would be better focused on enforcing the many pieces of legislation already offering protections to workers. Adding to labour on-costs, creating additional red tape or imposing new restrictions on labour hire or other forms of work can make employment and investment in Victoria less attractive. There is simply not enough justification to risk impacting jobs, investment and growth in Victoria.”
In its correspondence, AREEA highlighted how the final report of the Victorian Inquiry into the Labour Hire Industry and Insecure Work, handed down in August 2016, found that widespread non-compliance of employment and other laws was not found to be particularly prevalent amongst labour hire operators in general.
“In fact the report made reference to the ‘large proportion of reputable labour hire operators’ in Victoria,” Ms Diamond continued.
“The report also found that in devising a regulatory scheme that would address problems identified by the Inquiry, concern should be given to ensuring the impact on the large proportion of reputable labour hire operators in Victoria is minimised.
“It is AREEA’s strong view that this has not been the case, and that the labour hire licensing scheme that would come into effect with this Bill would in fact have a significant impact on all labour hire operators in Victoria, and many businesses which provide people expertise as well as services and which have not traditionally considered themselves labour hire.”
If they felt compelled to support some form of labour hire licensing scheme, AREEA advised the crossbench senators, they should seek significant amendments to the existing legislation to ensure it is appropriately limited.
This could see the scheme be sector-specific and directly targeted at those industries in which problems are common (i.e. demonstrated areas of concern, low pay, non-compliance with employment laws and associated underpayments).
Such an approach would ensure the original intent and purposes of labour hire licensing are met without impacting the majority of law-abiding, responsible labour hire operators and the projects and industries they support.
“It would also assist the resources and energy industry to get on with job creation,” Ms Diamond said.
AREEA is currently assisting members with various enquiries about labour hire licensing. This includes through the specialised workplace relations advice of AREEA’s expert Consulting team and the ongoing industry lobbying efforts of the Policy & Public Affairs Team. For advice and/or to get involved with AREEA’s advocacy, contact your local office.
