Robert Gottliebsen writes in 'The Australian' business...

Robert Gottliebsen writes in 'The Australian' business section:

"...Among the thousands of reader’s comments I have received, Brian asked me one of the big questions being asked around the land.

“Robert, just a question. Our son works offshore on a gas rig. He and the majority of workers are employed as casuals through a labour hire firm. How is this IR legislation likely to affect them and the whole offshore industry?”, Brian wrote.

I will set out the details below but the simple answer is that Brian’s son is likely to find 25 per cent less cash in his bank account in future months (there may be a delay). But he will get holiday and other non-cash entitlements.

Vast numbers of Australians will have the same experience...

...And, in employing casuals the labour hire firm is taking a huge risk because if there is a mistake they might have to pay him holiday pay as well as the casual margin.

Big fines could be imposed. But a 25 per cent cash pay cut to oil riggers is likely to cause strikes.

Back on land, many businesses have people on full-time and part-time employment that perform similar tasks to their casuals. And getting statutory declarations about the nature of the relationship is complex.

Accordingly, most enterprises will find it very dangerous to keep employing casuals in the months that follow August 26. The casuals will simply have to take a cash pay cut and plead with their landlords and banks for mercy. The employers will lose flexibility and productivity. Everyone loses..."

The new Industrial Relations Act sections favouring unproductive unions take effect from 26 August 2024.