Businesses are gearing up to oppose the Albanese government's gig worker laws.

Employer lobbies argue that provisions such as portable leave and rest breaks, which the government plans to mandate, will drive up costs and ultimately increase prices for consumers.

The Business Council of Australia (BCA), expected to lead the campaign against the government's proposed industrial relations changes, has strongly criticised the gig economy laws in a recent submission. 

The BCA highlighted concerns about potential restrictions on wages, scheduling, and the ability of gig workers to transition easily between platforms.

The government's proposal involves granting the Fair Work Commission powers to establish minimum pay and conditions for “employee-like” gig workers, with a focus on platforms like Uber and Doordash. 

However, BCA CEO Jennifer Westacott argued that the reforms fail to recognise the importance of flexibility in these roles for both workers and the community.

The platforms themselves typically fall back on this flexibility argument when resisting any kind of regulation or standards for workers. 

Westacott emphasised that gig services have been successful due to their ability to provide convenient and reliable products directly to customers. She warned that the proposed changes would result in higher costs for consumers, less reliable services, and reduced flexibility for workers.

Workplace Relations Minister Tony Burke says the government is aware of the need to maintain flexibility for platform workers, while also ensuring they receive fair pay. 

He stated that the government aims to strike a balance between flexibility and minimum standards to prevent gig workers from relying solely on tips to make ends meet.

While the government is still consulting on the details of the reforms, the BCA, which includes Uber among its members, argued that the consultation paper goes beyond minimum conditions, potentially establishing a broad “award-setting mechanism” with fewer safeguards. 

Such a system would impose a significant cost burden on businesses and prioritise vested interests over the best interests of gig workers, according to the BCA.

The BCA recommends involving a panel of economic experts and gig sector professionals in assisting the Fair Work Commission (FWC) and limiting the jurisdiction to setting a minimum remuneration safety net. 

It opposed the inclusion of workplace conditions like portable leave and rest breaks, as well as the FWC’s role in training, skills development, and dispute resolution.

The government's consultation paper (PDF) outlined a range of potential standards the Fair Work Commission could establish, including training, leave, breaks, payment rates, work time, and insurance.

Ms Westacott argued that gig economy platforms, spanning ride-sharing, care services, and education, are already engaging with their workers, providing flexibility, and implementing desired protections and benefits. She warned that these measures would have a negative impact on jobs, livelihoods, and the ability of businesses to innovate and keep pace with customer demands.

The BCA expressed concern that the proposed laws would create an uneven playing field between digital platforms and traditional operators. 

The group said it is important to allow businesses to scale up, change direction, innovate, and meet customers' evolving expectations.

In addition, the BCA criticised the government's proposal to grant gig workers collective bargaining rights, considering it an extreme measure that would encroach on businesses' commercial contracts.

The BCA has urged caution regarding an excessive role for unions in representing gig workers, stating that consideration should be given to the majority of gig workers who choose not to be union members. 

The lobby hopes that the consultation paper was just an initial stage of idea testing and not the final stage before legislation drafting.