The chair of one of Australia’s largest companies, Michael Chaney, has expressed his strong opposition to proposed changes to industrial relations laws. He believes that these changes would result in fewer job opportunities and lower wages for workers. Chaney made these comments at the annual general meeting of Wesfarmers, the conglomerate that owns Kmart and Bunnings, in Perth on October 26th.
Chaney specifically criticized the Albanese government’s “closing loopholes” bill, stating that it would have a detrimental impact on Australia’s employment landscape. One of his main concerns is a proposed change to casual employment, which would introduce a new ambiguous definition. He believes that this would make it harder for companies like Wesfarmers to offer casual work. Currently, more than 50,000 of Wesfarmers’ 120,000 employees are casual workers, and Chaney emphasized that many of them prefer this arrangement for its flexibility and higher rates.
Although the proposed legislation would not force any worker to switch from casual status, Chaney argues that the new rules would still create complexity, uncertainty, and increased costs. He warns that the administrative burden on employers to implement and comply with these changes would lead to a reduction in job opportunities, both casual and permanent, as businesses seek to mitigate the risks associated with the new regulations.
Chaney also highlighted that the government’s proposal would disproportionately affect certain groups, including young people still in education, working parents with caring responsibilities, employees with disabilities, and those transitioning into retirement.
In response to these proposed changes, the Australian Council of Trade Unions (ACTU) has called for the bill to be enacted promptly, criticizing the coalition government for delaying its potential passage. The ACTU argues that Australia is facing a wages emergency, with workers struggling to keep up with rising costs while their pay remains stagnant.
During the meeting, Wesfarmers managing director Rob Scott addressed the impact of higher inflation and interest rates on customer demand. While consumers are exhibiting caution when making significant purchases, there has been a sustained demand for products related to repair, maintenance, and smaller-scale projects at Bunnings stores.
Overall, trading for the first 16 weeks of the 2023/24 fiscal year has been consistent with Wesfarmers’ results from the previous year. In addition to Kmart and Bunnings, Wesfarmers owns other businesses such as Officeworks, Target, a chemical and energy division, an industrial health and safety division, and a health business that includes the Priceline and Soul Pattinson pharmacy chains.