Ai Group: union attempts to restrict casual employment flexibility need to be rejected

The Australian Industry Group has announced its opposition of unions’ attempts to reduce casual employment flexibility, with CEO Innes Willox saying the unions’ claims are “not in Australia’s interests”.

“The unions’ attempts to impose new restrictions on casual employment flexibility are not in the interests of employers, employees or the community. They risk the maintenance of flexible workplaces which are essential to lifting productivity and competitiveness,” Willox said.

In a statement released on Monday, Willox explained the reason behind the opposition.

“For many years the unions have been endeavouring to impose significant restrictions upon employers and employees in relation to casual employment. The unions are renewing their push on the back of the report from the Unions’ ‘Inquiry into Insecure Work’ which they released today. The unions’ claims need to be rejected.

“Employers need flexibility to maintain productivity and competitiveness. Employees need flexibility to meet family responsibilities and lifestyle choices. The community needs flexibility to achieve economic growth, high levels of employment and increased workforce participation.”

According to the ABS report ‘Forms of Employment, Australia’, there has been a continuing decrease in the proportion of employees who are employed on a casual basis. The peak was 21% in 2007, and today it stands at 19% - lower than it was seven years ago.

“There is no casualisation problem in Australia; the problem is the ongoing attempts by unions and others to limit flexibility for employers and employees,” said Willox.

“Casual employees receive a casual loading (typically 25%) to compensate for various entitlements received by full-time and part-time employees, such as annual leave and personal/carer’s leave. This is fair and most casuals are happy with the casual loading.

“These days it is common for many workers to be engaged on a long-term casual basis and there is nothing wrong with this. It has been widely recognised in cases before industrial tribunals that a very large proportion of casual employees have no desire to convert to permanent employment.

“These realities have led to ‘casual conversion’ clauses being included in many awards from around the year 2000 which give workers the right to request to convert to permanent employment after six months of continuous employment, with an employer only permitted to refuse a request if reasonable in the circumstances. When offered the choice to convert under these award clauses very few casuals have wanted to. They have not wanted to lose their flexibility and/or their casual loading.

“Ai Group intends to continue to vigorously oppose the unions’ attempts to reduce casual employment flexibility for employers and employees,” concluded Willox.