An industry body representing manufacturers across Melbourne’s south east is calling for a Senate inquiry into proposed workplace legislation, warning the changes could disadvantage small and medium-sized businesses competing for Commonwealth-funded contracts.
The South East Melbourne Manufacturers Alliance (SEMMA) has called on the Federal Government to refer its proposed Building Cooperative Workplaces Bill to a Senate inquiry, arguing the legislation could favour businesses with union-backed enterprise agreements when awarding taxpayer-funded contracts.
SEMMA says the proposed changes could place non-union businesses at a disadvantage when bidding for Commonwealth projects and is urging Parliament to subject the bill to greater scrutiny before it proceeds.
Procurement Concerns
According to SEMMA, the proposed legislation would give the Government the option of considering union-backed enterprise bargaining agreements when awarding government contracts.
The organisation argues procurement decisions should continue to be based on value for money, capability and performance, rather than industrial arrangements, and has called for assurances that businesses without union-backed agreements will not be disadvantaged.
Government contracts must be won on value for money, capability and performance, not on whether a business has struck a deal with a union.
Honi Walker, SEMMA CEO
SEMMA also says the proposed changes could create uncertainty for manufacturers and other small businesses considering investment, employment and future government tenders.
Push For Senate Inquiry
The organisation has criticised the decision not to refer the legislation to a Senate inquiry, arguing the proposed changes warrant closer examination before Parliament votes on the bill.
SEMMA further claims the legislation could increase union influence over government procurement and supply chains, describing the proposal as creating what it calls a “CFMEU tax”.
About SEMMA
SEMMA represents more than 3,800 manufacturing businesses across Melbourne’s south east. The organisation says the region contributes approximately $89 billion annually to the Australian economy and supports more than 75,000 manufacturing jobs.
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