Study plots casual effect
Labour laws designed to protect full-time workers have led to increased hiring of casual staff and the adoption of machines in the workplace, according to research.
Analysis by the e61 Institute has raised concerns about the Albanese government's proposed “same job, same pay” workplace changes.
Analysts at e61 say firms adapt to stricter labour laws by seeking flexible alternatives, which can have winners and losers.
The group says its study of data from the Australian Taxation Office, focusing on the impact of the 2009 unfair dismissal law implemented during the Rudd government, showed that the law made it harder to terminate employees in companies with over 15 full-time staff, resulting in increased hiring in industries with a significant number of casual workers.
Unfair dismissal claims rose from around 6,000 in 2007 under the Howard government's WorkChoices to approximately 17,000 in 2013 under Labor's Fair Work Act.
In firms with more than 15 employees, there was a 5.1 per cent increase in the use of capital, including machines and technology, compared to firms with fewer employees.
While wages increased by 0.9 per cent, driven by the hiring of more expensive casual workers, incumbent workers saw a relative decrease in their pay.
The study also found a 1.2 per cent decrease in productivity, partly due to difficulties in adjusting the workforce.
The current federal government is expanding multi-employer bargaining, proposing legislation in parliament to enhance the rights of regular casual workers, ensure labour-hire workers receive equal pay, strengthen union workplace entry rights, and establish minimum conditions for gig economy workers.
According to e61, a more effective workplace reform would involve addressing non-compete clauses, which it claims limit one in five Australian workers from moving to higher-paying and more productive companies.
Non-compete clauses are currently under consideration as part of the government's competition review.