Already a subscriber?Legal experts warn that novel arrangements where employers can share their employees under multi-employer agreements could hand unions control of labour supply and should face scrutiny under competition rules.
While employers are not blocked from hiring new workers, economists have said the agreement’s prioritisation of existing workers could create a barrier to entry for new hires and reduce job mobility. Seyfarth Shaw partner Chris Gardner said that, on its face, pooled labour meant businesses could get quick access to short-term labour, but he questioned how it would be decided which pooled workers got the extra work.
AMWU acting NSW secretary Brad Pidgeon dismissed the concerns as “fearmongering” and said pooled arrangements meant “the industry can retain skilled workers, which is more cost-effective and productive, and workers themselves have job security and continued recognition of service”.“This is good for the industry as a whole, and employers will continue to be able to hire new workers directly,” he said.
But he said the air-conditioning deal’s prioritisation of the group’s existing workforce was a “little inconsistent with the principles of independent companies having to bid for their labour”.“It doesn’t give future employees job opportunities.”“When the economy is tight people are prepared to do it. But an inhibition on being able to externally hire, you would think, is covered by normal principles of competition.