ACCI Business Leaders' Summit

Good morning. 

I acknowledge the Ngunnawal people as the Traditional Custodians of the lands in the ACT. 

And pay my respects to their Elders, past and present. 

I also want to acknowledge CEO Andrew McKellar, and President Lyall Gorman. 

It’s great to be here with you all this morning. 

As Minister for Employment and Workplace Relations, I am committed to working with business wherever I can. 

Of course, it’s no secret that you haven’t always welcomed all of our Government’s workplace relations reforms. 

And sometimes you even make those feelings publicly known.

But the engagement is always respectful and constructive, which I genuinely appreciate.

Because we do have a shared commitment to strengthening the effectiveness and integrity of our workplace relations system.

And that is particularly important in the construction sector. 

You will all no doubt be aware of the longstanding structural and cultural issues within the industry. 

Our Government has taken strong, concrete action to clean up the sector, including placing every branch of the construction division of the CFMEU into administration. 

And I would like to recognise the significant work of the administration towards cleaning up the union in just two years. 

Over 180 staff have been removed from the union, along with the entire elected leadership of the Victorian, Queensland and NSW branches, as well as the establishment of an Integrity Unit, a suite of new governance policies, and multiple independent investigations. 

Of course the work is not over, and our Government is committed to the administration remaining in place until that work is done. 

However, unfortunately not everyone is embracing these strong steps forward on governance and integrity. 

The Administrator’s most recent report points out – as we had always anticipated – ongoing attempts to undermine the Administration by elements of the removed former leadership. 

But we have strong provisions in the Scheme to prevent this. 

And we are consulting on reforms to further strengthen governance and integrity in the construction sector, including ways to tackle unregistered organisations. 

Because unregistered organisations risk undermining the integrity and effectiveness of our whole workplace relations system. 

They are not subject to the same high standards of accountability and oversight as registered unions. 

Beyond the CFMEU, our Government is committed to improving governance and integrity across the industry as a whole.  

Because it is clear the problems in the sector go far beyond just the CFMEU. 

Allegations of serious misconduct, intimidation and violence have also been made about employers and other industry participants. 

Our Government’s position is very clear: there is no place for criminality, corruption or violence in any part of the construction industry, by anyone. 

Of course, addressing these issues is a shared responsibility. 

And that is why our Government is working closely with states and territories, industry and regulators to drive meaningful action.

As part of that work, our Government is consulting widely on how potential Commonwealth standards for the construction industry could help lift performance and address persistent challenges in the sector. 

We released a discussion paper in August to seek feedback on a range of themes raised by industry stakeholders. 

Like the use of inappropriate industrial ‘fixers’, and setting fit and proper requirements for parties on construction projects. 

Now I want to be really clear.

These standards will not require employers to enter an enterprise agreement covered by a union to receive Commonwealth government funding. 

Nor will the Government preference union-covered enterprise agreements when considering tenders for federally funded building and construction work. 

These are important and complex issues. 

Changing deeply rooted cultural problems in the sector will take time. 

And success will require a collective effort.

But I want to reassure you that our Government is committed to the hard, serious, work of long-term industry reform. 

Looking beyond the construction sector, Labor made an election commitment in 2022 to develop a Secure Australian Jobs Framework.

Because secure jobs and productivity go hand in hand. 

Businesses that invest in skills and good workplace practices are better placed to deliver high-quality work, manage risk and provide value for taxpayers. 

The draft Framework has now been released for consultation. 

Now I know ACCI has voiced concerns about how the Framework will interact with business. 

And again I appreciate that your advocacy has been respectful.

So today I want to highlight what the Framework will do – and what it won’t do.

The Secure Jobs Framework sets out a principles-based approach to the Government’s expectations for secure work, fair treatment of workers and good workplace practices in Commonwealth contracts. 

And it includes some indicators of good practice, to give business greater clarity on how they can demonstrate these principles in practice. 

The Framework will sit alongside price, quality of goods and services, a supplier’s relevant experience and performance history in procurement processes. 

Now I can’t be clearer about this next point – value for money remains absolutely front and centre for Commonwealth procurement. 

And employers will not be required to be covered by an enterprise agreement as a condition of receiving government funding. 

But our Government does believe the Framework will provide better information to assess supplier capability and delivery risk. 

Which will help ensure taxpayers get the best return from Commonwealth spending.

The Framework will also not apply in the construction sector.

As I have already outlined, we have announced a consultation on separate standards for the construction industry. 

And of course, we’ll keep consulting with stakeholders throughout this process, to ensure the Framework is practical and workable across different industries. 

Labor also made an election commitment in 2022 to ban non-compete clauses for low and middle-income employees. 

Because we know that worker restraint clauses can hamper job mobility. 

And suppress competition and wages across the economy. 

An innovative and productive economy depends on workers being able to move to jobs where their skills are most valued. 

Modelling from the Productivity Commission estimates that reforms to limit the unreasonable use of non-compete clauses could boost Australia’s annual GDP by more than $5 billion a year. 

Because while there are instances where these types of clauses have a legitimate purpose, they put unreasonable constraints on many other workers – like childcare workers, tradies and hairdressers. 

Public consultation on the exposure draft for this reform recently closed.

And we will carefully consider those submissions as we work through the legislative process. 

But as you would have seen from the draft legislation, we have listened to the business community. 

Particularly concerns about whether it would apply in retrospect. 

We heard you loud and clear. 

And I can reassure you that this legislation will not operate retrospectively.  

These provisions will only apply to clauses and employment arrangements agreed to after the commencement of the bill. 

And I would like to recognise the concerns raised by some about the income threshold at which this ban would apply. 

But we think the threshold applied in the draft legislation strikes a fair balance. 

Of course, we recognise that there are likely employees under the high-income threshold with access to confidential information. 

Employers will still be able to protect their commercial sensitivities, through confidentiality and non-disclosure agreements. 

But these will be much more targeted, compared to the blunt instrument of non-compete clauses. 

As I have said, our Government is focused on delivering a workplace relations system that promotes integrity, cooperation and productivity across Australian workplaces. 

Of course, an essential part of that system is having a timely and effective dispute resolution process. 

As the independent workplace umpire, the Fair Work Commission has an essential role in that process. 

And to help ensure the Fair Work Commission continues to fulfil these vital functions, our Government has provided significant additional funding to the Commission. 

In addition, we have legislated to address some of the emerging trends the Commission is facing, particularly the rise in AI-generated applications. 

Our legislation has given additional powers to the Commission to deal with vexatious or frivolous applicants, including preventing them from making further applications. 

We have removed the burden of holding a hearing to determine whether or not an applicant in a general protections matter has actually been dismissed. 

And the Commission now has more discretion to be able to determine matters on the papers, without the need for a formal hearing. 

These changes will deliver faster resolutions to disputes, saving the time and resources of all parties.  

But of course, as you will know, the Commission does not have judicial powers, which means that some workplace matters must go to court. 

And stakeholders have told us the existing judicial framework is difficult to navigate. 

Resolution of workplace disputes can be spread across multiple institutions and pathways, adding cost and delays to accessing justice. 

Parties might spend years trying to navigate lengthy legal proceedings in the Federal Court system, which deals with a vast variety of matters, not just employment law. 

Meanwhile, the feedback I am hearing from stakeholders about state-based specialist employment courts is that they can be quicker and easier to navigate. 

But these state-based courts are not available in every jurisdiction, and their set-up differs from state to state. 

This can create barriers to the quick and efficient resolution of disputes – for both workers and businesses. 

Our Government wants to see faster and more effective outcomes for workers and employers across the whole country. 

That’s why Labor recently announced we will establish a Fair Work Court, to provide a specialist judicial forum and a clear pathway for resolving workplace disputes. 

The judges on the Fair Work Court will be experts in workplace relations matters, bringing deep specialist knowledge of the Fair Work framework and how it applies to Australian workplaces. 

I would like to stress this point: the creation of a Fair Work Court is not about adding additional obligations for employers. 

It is about improving accessibility, and the way existing laws are administered and enforced. 

The Fair Work Commission will retain its central role in conciliation and arbitration, as Australia’s independent workplace tribunal. 

Our Government is consulting with key stakeholders on the design and scope of the Court. 

As I have said, I am committed to working closely with business and industry wherever possible. 

Because making meaningful progress on many of the challenges that we face in our economy, like the adoption of AI, requires all of us to work together. 

And I know you’ve just heard from Assistant Minister Charlton, talking about the critical imperative to back Australian AI.

But in my portfolio, what I am focused on is ensuring AI is adopted in Australian workplaces in a way that shares the benefits fairly between workers and employers. 

That’s why I have convened the tripartite AI Employment and Workplaces Forum, bringing together representatives from government, unions and employers. 

And I would like to thank Andrew and ACCI for their engagement and contributions to the Forum.

Together, Forum members have agreed to develop best practice guidance for the workplace adoption of artificial intelligence.

Forum members – both employers and unions – expressed a need to understand how to deploy AI in a way that builds trust and means everyone can benefit from the potential productivity gains. 

This will be the first set of government-backed guidance to be developed through an explicitly tripartite process. 

It will cover the full spectrum of AI in the workplace, with a focus on how Australian businesses can deploy AI in a way that builds trust, through evidence and case studies. 

And we will continue to engage with ACCI on drafting this guidance.

Of course, one of the key ingredients for best practice is capability. 

Not just the capability of workers and employers to use AI. 

But the capability at all levels of an organisation to adopt AI in a way that maintains trust. 

Because we know that Australians have low levels of trust in AI, which could negatively impact the successful adoption of AI in the workplace and undermine its potential productivity benefits. 

Just as our Government is working together with industry to maximise the benefits of AI adoption in the workplace, we are also working together to tackle another challenge: gender equality in the workforce.

Because unfortunately, Australia has some of the highest rates of industry gender segregation amongst advanced economies. 

And that has negative impacts across our economy. 

Occupational shortages get worse as gender segregation intensifies. 

And businesses miss out on the diversity of thinking that drives growth. 

To tackle the systemic barriers that contribute to gender segregation, our Government’s grant program to advance gender equality has delivered funding to both employer-led and worker-led projects. 

ACCI received $6 million over three years to support women to set up and succeed in their own small businesses. 

Earlier this year I spoke at ACCI’s Women in Small Business Summit. 

And what was really evident from that event was the importance of mentorship and peer networks in supporting women to start and grow their own small businesses. 

Which is why I was so pleased to see that ACCI used their funding to take their Chamber Change program to the national level, to foster those networks across the country. 

One of the stories I heard was about Montana, who participated in the Perth Chamber Change pilot and said it truly changed the trajectory of her career. 

The advice she received from her mentors and champions helped her engage with other working mothers in her social circle. 

And gave her the confidence to put her hand up for opportunities she previously thought she was unqualified for. 

I’m looking forward to hearing many more stories like Montana’s, supported through the extension of this grant funding that I announced last year. 

Across all these issues – whether it’s reforming the construction sector, improving dispute resolution, AI adoption or advancing gender equality – what’s really critical is that Australia has a workplace relations system that is fair, productive and fit for the future. 

As a Government, we are committed to strengthening the institutions and frameworks of our workplace relations system to promote cooperative and productive workplaces. 

But we also know that these are complex issues, and that lasting change is rarely achieved by Government acting alone. 

And our Government will keep engaging closely with employers, industry, workers and their unions as we continue this important work. 

Thank you.