Redland small business have much to fear over new IR changes

Redland small business have much to fear over new IR changes

The Albanese Labor Government’s new Industrial Relations Bill, which is before the Senate, has significant cost implications for many Redland small businesses.

Member for Bowman, Henry Pike said that the industrial relations changes would expand multi-employer bargaining to all small businesses with 15 employees or more.

“For local Redland businesses, who have not got the luxury of big human resources departments, this will add significantly to their costs and the complexity of doing business,” Mr Pike said.

The latest ABS data reveals that 180 local Redland businesses have 20 employees or more and will be in the firing line of these changes. The Redland industries most at risk include accommodation and food services, construction, retail, manufacturing and healthcare. This ABS data only reflects the 20-199 headcount alone and does not include the many local businesses who have between 15 and 20 employees.

Mr Pike said that the Government’s estimations of the costs of this policy for affected businesses was eye-watering.

The Albanese Government’s own Regulatory Impact Statement has estimated that Labor’s legislation will cost small businesses $14,600 in bargaining costs, including consultancy fees. For medium-sized businesses, the cost would be over $75,000.

“Local businesses simply shouldn’t have to absorb costs of this magnitude,” Mr Pike said.

“I fear that these IR changes will cause an artificial cap where businesses may stop employing once they reach 14 out of fear of falling foul of the legislation.”

“This would be an incredibly poor outcome at a time when we need Redland businesses to continue to grow and create jobs for locals.”

“It is important to note that Labor didn’t take this policy to the election and they have had no mandate from the Australian people for these Industrial Relations changes.”

The Prime Minister has received criticism from small business groups, big businesses and peak bodies, manufacturers and logistics companies, alongside unanimous calls from the Opposition and the Crossbench in the House and the Senate to halt the bill.