Small business employees face greater job uncertainty under Labor’s IR reforms

14-March-2009

Locals employed in retail or hospitality have been warned by industry groups to brace for job losses under Labor’s proposed industrial relation reforms,” Federal Liberal Member for Indi, Mrs Sophie Mirabella MP said today.

The Australian Retailers Association (ARA) said small retailers cannot cope with the increased labour costs associated with Labor’s Fair Work Bill, indicating staff will be sacked.

“According to the ARA, more than one in two small retailers will shed staff under Labor’s new modern retail award as it will push small business costs up,” Mrs Mirabella said said.

“While hospitality workers have been warned by the Restaurant and Catering Association there will be mass job losses under Labor’s industrial relations reforms, estimating 1,000 restaurants will go out of business.

“We will see restaurants in around the country shutting their doors under Labor’s industrial relations reforms, putting more people out of work. Other restaurants may cut their opening hours back, and restructure their rosters to reduce labour costs,” Mrs Mirabella said.

“Under Labor’s IR reforms, the restaurant, café and catering industry will come under the hotels award, which applies to pubs and casinos. This will push labour costs up for small businesses in the North-East.”

“The Coalition has real concerns about the impact on small business jobs as a result of Labor’s proposed industrial relations reforms. They are job destroying laws which industry groups are predicting will lead to a very stark rise in unemployment,” Mrs Mirabella said.

“Retail and hospitality workers in the North East and on the border want a guarantee from the Rudd Labor Government that they will still have a job in 12 months time. Labor has failed to offer that guarantee.”

“Cash flow is the single biggest problem for small businesses in this economic crisis, and this Labor Government is doing very little to help Australia’s 2.4 million small businesses which employ 3.8 million Australians,” Mrs Mirabella said.

“While I understand in these uncertain economic times that no small business is recession proof, Labor is making the problem worse with award modernisation.”