Navigating the Future of HR and IR - AHRI SA Conference 2025
I want to acknowledge the Kaurna people, the Traditional Owners and Custodians of where we meet today and their continuing connection to land, waters and community.
I extend that respect to Elders past and present, and any Aboriginal and Torres Strait Islander Peoples here tonight.
Thanks for the opportunity to speak with you all today.
Firstly, I would like to acknowledge and thank the Australian HR Institute for its critical work supporting HR professionals across Australia.
The research AHRI does on workplace issues helps not only the HR profession, but the wider business community and the Government as well.
This work includes AHRI’s Quarterly Australian Work Outlook - a comprehensive survey of more than 600 senior HR and management professionals across private, public and not-for-profit organisations nationally, which provides invaluable insights into the labour market.
I was last able to sit down with the Australian HR Institute a few months ago in June, when AHRI had just released its June Quarterly report.
It found that a number of our first term workplace relations reforms, including changes to fixed-term contracts, casual employment, the right to disconnect and the Respect@Work improvements, have had a positive impact on productivity and employee engagement.
We implemented these changes to boost wages and job security for workers, but also to improve fairness and productivity for employers.
As Employment and Workplace Relations Minister, I’d like to bring you up to speed on the impacts of those reforms and outline my vision for workplace relations.
When it comes to workplace relations, I remain steadfast in the belief that the way to achieve our shared aims of fair, safe and productive workplaces is through constructive dialogue.
I’m talking about dialogue directly between employers, workers and their unions in workplaces; as well as dialogue involving government through formal tripartite forums like the National Workplace Relations Consultative Council and National Construction Industry Forum.
I want to see this type of constructive dialogue increase and focus on how employers and employees can work smarter, grow businesses and the economy, and make sure that everyone gets a fair share of that growth through better wages.
I know that institutions like AHRI and its membership bring frontline knowledge and experience to the table when it comes to getting these discussions happening; and you provide a critical voice on behalf of businesses.
HR professionals really are at the coalface when it comes to workplace relations, and your perspectives are invaluable.
Productivity remains at the very core of our Albanese Labor Government’s second term agenda.
We demonstrated our commitment and intent at the Economic Roundtable in August and there will be more to come on this agenda as the term unfolds.
And as this room knows very well, effective people management is absolutely critical to driving productivity and profitability.
This is an area that does not get enough attention in Australia and I’m very grateful to AHRI for shining a light on it.
What we find is that measures that support and value workers are also beneficial for business.
AHRI research from 2024 shows that organisations implementing fair work practices - such as flexible working and greater employee consultation - are more likely to achieve higher profitability.
And this is no surprise, because of course when workers can see they are being paid fairly, their wages are growing in real terms, their job is safe and secure, their work is valued, they have some control over their working lives and how they balance work with their outside lives, and they are consulted on changes that will affect them – then they are more engaged, more motivated and more committed.
And that results in a workforce which is more secure and stable for employers.
Where the Coalition pitched people against each other, we are bringing people together to work cooperatively to achieve the productive, safe and fair workplaces that benefit us all.
I don’t need to reiterate to this audience that our first term workplace relations changes were the most significant since the Fair Work Act was established 16 years ago.
After a decade of wage suppression and lack of stewardship of the labour market, these reforms were long overdue.
We appreciate that businesses and workers need time to get across these changes, and that we need to continue to monitor their impact.
Our changes were designed to get wages moving, reinvigorate bargaining, improve job security and safety, close the gender pay gap, and remove loopholes in the system that undermined fairness – for both workers and employers.
Importantly, our changes were also aimed at boosting the constructive dialogue I just mentioned between workers and their unions, employers, and government.
The key point I make today and everywhere I go is that, yes, these reforms are absolutely good for workers – and as a Labor government we are proud of that – but they are also good for businesses.
I am motivated by the strong belief that a race to the bottom on wages and conditions benefits no one – not employers, not workers, not industry and not the nation. And it certainly doesn’t improve productivity.
Our reforms are starting to level the playing field for the vast majority of responsible employers doing the right thing, who for a decade were undercut by a minority of unscrupulous employers exploiting loopholes that for too long were left unaddressed.
Our reforms have brought parties back to the bargaining table - some of whom have not bargained for many years, and some of whom are bargaining for the first time.
The number of Australians covered by enterprise agreements now sits at almost 2.8 million, the highest recorded number since bargaining first began in 1991.
This is good for workers and good for business.
As the independent review of the Secure Jobs Better Pay reforms observed – and which you as HR professionals would witness first-hand – the very process of bargaining can have a positive impact on productivity.
Because it builds that constructive dialogue that I’ve been talking about - it gets the parties together, developing constructive relationships, identifying common ground and establishing trust.
From there, mutually beneficial bargaining outcomes can be negotiated, whether that be flexible work options, skill development opportunities, more productive work practices, or better wages.
Our bargaining reforms have also had the important effect of extending the benefits of bargaining to lower paid female-dominated sectors which have historically not been able to access it.
The new supported bargaining stream, for example, has allowed early childhood educators to secure a pay increase of 15% over two years.
This is a fantastic and long overdue pay increase for those workers and their families, but importantly the increase is also having an early positive impact in helping employers attract and retain workers in this critical sector - workforce issues that must be addressed to support the Government’s ambition for a truly universal, affordable early childhood education and care system.
We know that affordable, accessible care is crucial to help ensure that parents - particularly mothers - can participate in paid work.
That’s why we’re proud to say that women’s workforce participation is now at a record high, with 63.5% of women either in work or actively looking for work.
Unlocking women's participation helps to alleviate labour shortages, which is good for workers and good for business.
We’ve also increased paid parental leave from 18-26 weeks, ensuring that women at that critical time of giving birth, remain connected to their workplace and indeed return to work – as well as incentivising shared care.
And we have introduced a 12% superannuation contribution on government Paid Parental Leave, helping women boost their retirement savings.
We know there is still more work to be done, particularly to increase women’s workforce participation in male dominated industries like construction.
That’s why we have invested over $60 million in the Building Women’s Careers program to improve women’s access to flexible, safe and inclusive training and work opportunities in the key male-dominated industries and sectors like construction, clean energy, advanced manufacturing and digital technology.
Despite some very dire predictions from those on the other side of politics, the Australian labour market has in fact performed strongly since our reforms commenced.
The number of Australians in work has risen by more than 1.1 million since May 2022 – this is a higher rate of employment growth than any major advanced economy.
During the financial year 2024-25, Australians started 437,150 new businesses, higher than in both 2022-23 and 2023-24.
There are 7.3% more small businesses than in 2022.
The rate of industrial disputation remains low.
Wages are moving – the June quarter 2025 marked the seventh consecutive quarter of annual real wages growth.
The gender pay gap is at its equal lowest level on record, and Australian women working full-time are now earning more than $250 a week more on average than they were before we came to government.
All of this against the background of an unemployment rate of 4.5% in September 2025, remaining low by historical standards.
Of course, we absolutely acknowledge that some Australian workers and businesses are still doing it tough, but these early positive signs are certainly encouraging.
As you can see we are making great progress in delivering our workplace relations reforms and with the Secure Jobs Better Pay Act Review complete, we now look to a review on Closing Loopholes commencing by the end of the year.
We want to continue to work with employers, workers and their unions to increase constructive dialogue and build cooperative workplaces and a prosperous, productive economy for all Australians.
If we turn our attention to other election commitments.
Our Government has delivered on our commitment to protect penalty rates for the 2.6 million Australian workers who are reliant on modern awards.
And we have introduced the Fair Work Amendment (Baby Priya’s) Bill 2025 – to protect employer-funded paid parental leave for working parents who suffer the devastating loss of stillbirth or early infant death of a child.
The impact of this commitment for those parents will be profound.
The Bill is named after Baby Priya, who was born prematurely at 24 weeks and heartbreakingly died when she was just 42 days old.
After informing her employer that her child had passed away, Priya’s mum was faced with negotiating with her employer about a return to work she hadn’t planned for, at the same time as grieving the loss of her child.
Baby Priya’s Bill will provide employers and HR professionals with greater clarity in situations where a parent has experienced the tragedy of stillbirth or early infant death.
Baby Priya’s parents bravely advocated for this clarity, and our Labor Government has now delivered on this election commitment.
The Bill introduces a new principle into the Fair Work Act that unless employers and employees have expressly agreed otherwise, employer-funded paid parental leave must not be cancelled because a child is stillborn or dies.
It upholds the ability of employers and employees to negotiate and agree conditions dealing with stillbirth and infant death.
It shows, once again, how enterprise bargaining and good faith workplace discussions is central to the government’s approach to workplace relations.
We’ve also made an election commitment to ban non-compete clauses to end wage suppression and allow better job mobility for workers.
Moving jobs allows workers to grow skills and get better wages and conditions.
Job mobility makes it easier for new businesses to enter the market.
The non-compete ban would cover workers earning less than the high-income threshold in the Fair Work Act.
Consultation on the non-compete reforms has now closed and we are considering the feedback.
An important tripartite body that brings governments, unions and employers together to improve health and safety at work is Safe Work Australia.
Safe Work Australia is currently conducting a Best Practice Review of our Work Health and Safety laws, with a final report expected in mid-2026.
We know business wants harmonisation – and the best practice review allows us to recommit ourselves to harmonisation and look at what best practice actually is.
No doubt the Australian HR Institute will be keen on the outcome of this report, as an industry working in the complementary areas of workplace health and safety and employee well-being.
A key issue under consideration will be the management of psychosocial hazards and the promotion of mentally healthy workplaces.
On this complex issue we all have a role to play – government, employers, and workers and their unions.
The policy area of work health and safety never stands still.
Different jurisdictions have made changes over time that can diverge.
As I said, I am resolved to advancing harmonisation - while ensuring we continue to make workplaces as safe as they can be.
It is vital we continue to be ambitious, and we collectively pursue best practice in a harmonised way.
Before closing, I would like to mention the importance of ensuring that all Australians enjoy the benefits of having a rewarding and productive job.
The latest Australian HR Institute report for the June quarter reported job-seekers’ skills and experience as a key recruitment challenge.
We agree that our skills and training system is missing a key building block.
These are skills that give people access to an education system and provide opportunities to develop careers and engage in life-long learning.
Under the National Skills Agreement, $142 million has been allocated to improve foundation skills training capacity, quality, and accessibility.
To support this, the Australian and state and territory governments have developed a 10-year National Foundation Skills Strategy which sets out an agreed direction to ensure we work together to enable people to have the underpinning skills they need to contribute to the workplace.
Programs like our expanded Skills for Education and Employment program recognise we need a broader approach to building foundation skills for people beyond registered jobseekers.
I’ve seen first-hand the benefits for people – like Kerri from Noarlunga, in my electorate.
Kerry joined the SEE Program with the goal of enhancing her computer skills.
She wanted to master essential tasks such as navigating websites, sending emails, conducting online research and using basic word processing programs.
Kerri improved her digital confidence and indeed discovered her previously untapped excellent typing skills.
Or Milad, who undertook a work placement through the SEE program to gain valuable hands-on experience of the Australian workplace environment, helping him build his professional networks and skills.
When Milad completed his study with SEE, he successfully landed a job.
Here in South Australia, the Australian and state governments recently announced joint funding of $14 million to deliver up to 12,000 training places in foundation skills across 2027-28.
In addition to improving our skills system, I also want to see a fit for purpose Employment Services system that provides job seekers with tailored support to get them into a job but also is responsive to industry and business needs.
This was the principle I applied in my previous portfolio in reshaping the new Inclusive Employment Australia Program, which will officially replace the Disability Employment Services program, tomorrow.
It’s so important that our employment services system must be able to reach job-seekers – no matter how far from the labour market they are.
Whether recently disconnected and facing a sudden skills gap, or with more complex long-term barriers, we need an employment services system that can tailor pathways to employment.
In closing, I want to boost constructive dialogue to address the issues that matter to all of us – safety, fairness and productivity.
Whether at the national, industry or workplace level – it’s important to resolve differences, find common ground and move forward together.
I look forward to continuing this positive engagement with the Australian HR Institute and its members throughout my term as Minister for Employment and Workplace Relations.
Thank you and enjoy the rest of your day.